SAS to lay off hundreds after disappointing results

SAS maintains that it can still make a profit for the year

June 18th, 2014 1:33 pm| by admin
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Scandinavia’s crown jewel of the skies, SAS, has revealed that it intends to lay off 300 employees after yet another round of disappointing financial results for the second quarter of this year.

Compared to the second quarter last year, turnover was around 1.24 million kroner less, mostly because of increased competition in the Scandinavian airline market.

"Continued intense competition and pressure on prices in the Scandinavian air travel market reduced margins more than expected and SAS posted an EBT of minus1.078 million Swedish krona for the second quarter,” Rickard Gustafson, the head of SAS, said in a press release.

“We are deeply disappointed with the results, which were substantially below our own expectations.”

READ MORE: SAS passenger numbers up, but company remains shaky investment

Still a chance for profits
Gustafson went on to say that the airline needed to act more aggressively and implement more measures geared at saving costs.

Along with the lay-offs, SAS plans to save around 839 million kroner in the next full financial year in 2015 by opening up new routes to the US and Asia from Stockholm and Oslo.

Despite the dour news, SAS maintains that it can still make a profit for the year, but that this will hinge on fuel prices and capacity not changing for the worse.

 

 

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