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SAS To Cut Jobs After Losses

Published tisdag 29 april 2008 kl 10.08

Scandinavian airline SAS is to shed 1,000 jobs after suffering large losses during the first financial quarter of the year.

The airline, half owned by Sweden, Norway and Denmark posted net losses of 1.08 billion Swedish kronor, that’s around 181 million US dollars. The losses were more than analysists had predicted.

As a result, SAS said it was starting a ”short-term action plan” that would reverse the losses and ride out any potential long-term economic downturn.

Plans include eliminating 1,000 full-time positions and reducing its fleet by 11 aircraft.

SAS put the losses down to higher fuel costs and growing competition.

”The situation in the air-travel industry is serious. For this reason it is vital that we turn around the earnings trend,” Chief Executive Mats Jansson said.

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