Ailing Scandinavian Airline SAS Launches Major Savings Package

Copenhagen — Ailing Scandinavian airline SAS has launched a comprehensive savings programme.

The package of measures is intended to reduce annual costs by 7.5 billion Swedish kronor ($800 million), SAS announced when it presented its quarterly figures on Tuesday.

In doing so, the company aims to create a stable financial foundation and ensure that it remains competitive in the long term.

" SAS is now, more than ever, in need of a new start," the airline said.

On the one hand, the company has been burdened for many years by an uncompetitive cost structure that prevents it from reaching its full potential; on the other, the past two years have been the most difficult in the history of the airline industry.

"The pandemic has had a fundamental impact on SAS – ranging from lockdowns, travel-restrictions to structural changes in travel patterns. Absent fundamental change, this will quickly exhaust SAS’ cash resources," the airline noted.

SAS is thus facing "a full transformation of its business," according to a group statement, including impacts on the network, fleet, collective agreements and other costs.

Among other things, there is to be a realignment in long-haul flights. In addition, SAS wants to position itself as a leader in sustainable flying.

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