SAS plans to cut billions in costs a year

SASPhoto: Gorm Kallestad / NTB

The airline SAS wants to cut costs by 7.5 billion Swedish kroner annually as a part of its new SAS Forward plan.

SAS wants to aggressively reduce costs with a far more comprehensive burden-sharing across all major stakeholder and creditor groups, the airline wrote in a press release on Tuesday.

SAS Forward also involves new product offerings and digitalization to strengthen the airline’s future market position.

The company’s revenues increased from 2.3 billion in the first quarter of 2021 to 5.5 billion in the corresponding quarter last year. The quarter covers the period November 2021 to January this year and is defined as SAS’s first quarter.

Expenses, earnings, passenger figures

Operating expenses increased by 55% to 6.9 billion. Earnings before tax ended at minus 2.6 billion, compared with minus 1.9 billion in the corresponding quarter the year before.

Passenger numbers also fell by 15% from the fourth quarter last year. At the same time, the airline has also seen ticket sales increase recently, which is promising for the time ahead, the company noted.

“The ongoing COVID-19 pandemic and the uncertainty it entails do not make it possible to come up with any prospects for the financial result for the coming financial year,” the company’s management stated.

SAS CEO Anko Van der Werff has previously signaled that the company will have to adapt to a new everyday life after the pandemic.

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

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