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
facebooktwittergoogle_pluspinterestmail

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.

 

 

De Saint Phalle may be dead, but her vision of femininity lives on in her art. (Photo: CCO)
Mid-February Art: A truly original vision of femininity
Niki de Saint Phalle Feb 13-June 12, open Tue-Sun 10:00-21:00; Arken, Skov...
Two men were killed and five were injured in Copenhagen terror attacks that took place last year on February 14 and 15 (photo: iStock)
Copenhagen remembers terror attacks
Copenhageners are commemorating today the tragic deaths of Finn Nørgaard ...
Uber drivers are private people who provide carpooling services (photo: iStock)
Taxi drivers in Copenhagen demonstrated against Uber
Taxi drivers in Copenhagen demonstrated yesterday against the ride-hailing ...
The crew of 'The Danish Girl were about town': two Oscar hopefuls and the director (all photos: Hasse Ferrold)
About Town: Amongst the stars of ‘The Danish Girl’ and the Roberts
It might not have been a Danish film, but given its subject matter and na...
“One day you’ll teach them all to fly, boss-whisperer” (photo: iStock)
21st Century Alchemy: Learning to be a cowboy
When I was eleven, we visited my sister in the countryside. Her neighbo...
We know Lear couldn't recognize his daughter, but did the English even know their favourite son?
Crazier than Christmas: To tell or not to tell
There is a murder mystery about Shakespeare that could rattle the foundatio...