The war in Ukraine has put pressure on energy prices, including jet fuel. That could give SAS and other airlines extra costs of several billion kroner.

Normally, companies hedge against price increases by entering into fixed-price agreements for a certain amount of fuel. Corona restrictions and subsequent uncertainty have led to SAS, among others, recently abandoning this practice, the Danish business newspaper Børsen wrote on Thursday.

According to analyst Jacob Pedersen at Sydbank, the Scandinavian airline could face an extra bill of between 3 and 3.5 billion Danish kroner this year – in addition to the normal fuel cost of 5 billion Danish kroner – which today corresponds to around NOK 6.6 billion.

Jacobsen believes the competitive market situation makes it difficult for SAS to increase ticket prices.

Companies such as Norwegian and Finnair have also dropped fixed-price agreements due to the uncertainty in the tourism industry, Børsen noted.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

Do you have a news tip for Norway Today? We want to hear it. Get in touch at [email protected]