SAS unveils rough financial results

Airline gearing up for sixth saving plan in 12 years

The Scandinavian airline SAS will enter yet another year on a mission to make some serious savings after revealing poor financial results for 2014 that showed a loss of 575 million kroner.

The airline lost 352 million kroner during the fourth quarter alone, and it is now gearing up for its sixth saving plan in 12 years. However, SAS said it would avoid a huge round of personnel firings.

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Optimising with Cimber
Rickard Gustafson, the CEO of SAS, said in a press release that earnings had been impacted by fierce competition – such as from Norwegian, Ryanair and Easyjet – and price pressure, a trend that will probably continue next year.

“To meet these challenges and strengthen competitiveness, we are implementing additional long-term cost-saving measures that will span the entire business and together generate an earnings impact of SEK 2.1 billion with full effect in 2017,” Gustafson said.

The CEO went on to reveal that the airline had already taken measures to continue the optimisation of production and fleet streamlining – part of which was the acquisition of Cimber earlier this month.