SAS to cut 1,000 jobs as fuel, competition hamper growth

FRANKFURT: SAS AB plans to cut 1,000 administrative jobs and double its cost-savings target as the Nordic airline prepares for rising fuel prices and intensifying competition that’s lowering fares and hampering earnings growth.

Profit in the fiscal first quarter, which started Nov 1, will decline from a year earlier following “more demanding” trading conditions in the autumn autumn, Stockholm-based SAS said on Tuesday in a statement. The airline will try to reduce spending on operations by 1.5 billion kronor (US$164 million) from 2017 to 2019, versus an earlier target of 800 million kronor, with the job cuts amounting to about 9.3% of its workforce. It’s also considering establishing airline operations outside of its home markets of Sweden, Norway and Denmark.