SAS airline to cut costs after profits fall
Swedish airline SAS reported an unexpectedly sharp fall in profits, along with plans to increase cost cutting in its end of year report on Tuesday.
The airline revealed it had made a profit of SEK 577 million before tax for the fourth quarter of this year, down from SEK 867 million a year before.
The decline in profit came despite passenger numbers increasing.
CEO Rickard Gustafson wrote that it had been a demanding time for the industry and the pace of change was quick, with more low-cost airlines emerging. He said SAS must lower its costs if it is going to meet the greater demand for more long-haul and European leisure routes.
The company, of which the Swedish state is the biggest shareholder with 17.3 percent, will now increase its cutting costs measures from SEK 800 million to SEK 1.5 billion between 2017 and 2019.