The summer was better than expected for SAS, but the company believes it may be difficult to deliver profits for the year 2019 and announces new cost cuts.
The company reported a pre-tax profit of almost SEK 1.5 billion in the third quarter, which runs from May to July.
SAS was able to record a record number of passengers during the important summer months. At the same time, high fuel costs, weak currencies and the pilot strike affected the result, which was about half a billion kroner lower than the same period last year.
CEO Richard Gustafson describes it as disappointing. The company is rolling out new savings initiatives.
Although the revenue increase is encouraging, the prevailing macroeconomic challenges require improved efficiency to ensure competitiveness and long-term profitability, Gustafson writes in the results statement.
Upgrading the fleet to a clean Airbus fleet will in the long run provide improved efficiency, writes E24. The company will also cut costs by increasing efforts for digitisation, both for better aids for employees and more self-service. In addition, a new organisation will be introduced from October.
© NTB Scanpix / #Norway Today