Airline posts disappointing second-quarter result
A disappointing second-quarter result is pushing SAS to implement a new savings plan and tougher cost-cutting measures – including several hundred job losses.
“The market has shown that it is essential for SAS to act more aggressively,” SAS CEO Rickard Gustafson said this morning in response to the February-April results.
The airline’s management team will therefore lay off a total of 300 full-time employees in the company’s support, administration, management and commercial departments.
Along with a plan to boost revenue, which includes the opening of new long-haul routes from Oslo and Stockholm, the airline expects savings to contribute to a positive impact of about €110 million for the next 2014-15 full year. This year, it is still unclear how much influence the savings plan will have.
In the first half of the current financial year SAS saw its net losses double to €90 million. The explanation is in the weak second quarter, when revenues were approximately SEK 1.5 billion lower than the same period last year.
“We are deeply disappointed with the results that are significantly below our expectations,” Gustafson said, blaming hard low-cost competition in the Scandinavian market. “The intense competition means that SAS should be more aggressive in the fight for customers. We have improved the offer to the most active customers in Scandinavia and intensified our marketing activities and we can see that it has an effect.”
[photo courtesy SAS]