SAS airline remains in the red after weak quarter

SAS airline remains in the red after weak quarter Stockholm - The SAS Group, operator of the joint carrier Scandinavian Airlines, on Wednesday reported a second-quarter loss and lower turnover, and said it planned further job cuts.

The pre-tax loss was 1.03 billion kronor (141 million dollars), compared to a year-on-year pre-tax profit of 131 million kronor.

Turnover fell 15 per cent to 12.2 billion kronor in the quarter, while the net loss was 1.04 billion kronor. A year ago, the net loss was 442 billion kronor.

Cost-cutting measures would continue, SAS chief executive Mats Jansson said in a statement, noting that half of the current plan had been implemented.

SAS was to expand the cost-cutting plan to 2 billion kronor and would reduce its staff by between 1,000-1,500 employees, the group said.

Some 1,200 employees left the group during the quarter. The headcount at the end of the quarter was around 19,800 people.

In addition, management planned to begin talks with pilots and cabin crew unions to lower salaries and pensions by 10-20 per cent.

The SAS Group flew 6.8 million passengers during the quarter, down 17 per cent year-on-year. (dpa)