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Stockholm-Sweden-Airline SAS to Cut More Jobs After Losses

August 19, 2008

Stockholm-Sweden-Airline SAS to cut more jobs after losses

STOCKHOLM, Aug. 14 (Xinhua) — Scandinavian airline SAS will cut 500 more jobs after suffering a large loss during the second financial quarter of the year.

The airline, a multi-national company for Sweden, Norway and Denmark, posted a net loss of 411 million kronor (76.5 million U.S. dollars) from April to June due to high fuel costs, the group said in its quarterly report available Thursday.

SAS would expand its recent cost-cutting program by reducing its aircraft capacity by 33 planes for the whole group and slashing some 2,500 jobs, 500 more than earlier announced, SAS Chief Executive Mats Jansson said in the report.

“There is no doubt that the situation in the air travel industry is serious and probably the most difficult it has ever been,” Jansson added.

The company’s second-quarter sales however rose nearly 9 percent to 17.7 billion kronor (3.29 billion dollars) from 16.3 billion (3.03 billion dollars) kronor year-on-year, according to the report.

SAS, the leading carrier in Scandinavia, is a founding member of the Star Alliance.

(c) 2008 Xinhua News Agency – CEIS. Provided by ProQuest LLC. All rights Reserved.