Stockholm - The SAS Group, the operator of the joint carrier Scandinavian Airlines, on Wednesday posted a pre-tax loss for third- quarter 2008, citing high fuel costs, the economic downturn and a goodwill writedown in its Spanish-based carrier.

The SAS Group posted a third-quarter pre-tax loss of 1.78 billion kronor (231 million dollars) compared to a pre-tax profit of 457 million kronor in the corresponding business period of 2007.

Third-quarter sales were 16.36 billion kronor, slightly up year- on-year.

A sizeable chunk of the loss was attributed to the 1.96-billion- kronor writedown of goodwill and tax assets in the Spanair subsidiary, SAS said.

SAS chief executive Mats Jansson said in a statement that the decrease in earnings was due to "the economic trend that both impacts total demand and alters the behavioural patterns of business travellers, and the continued high price of oil."

The stronger US dollar had offset the recent drop in oil prices, he said, adding that travel would be impacted by "a further deepening of the recession by the financial crisis."

Cost-cutting measures were continuing with the short-term Profit 2008 programme producing savings of 1.5 billion kronor, and reducing its aircraft capacity by 33 planes, including 15 operated by Spanair.

At the end of the quarter, the SAS Group had 24,298 employees.

The SAS Group flew 9.8 million passengers during the quarter, down 5.4 per cent year-on-year.

The governments of Norway, Sweden and Denmark own a 50-per-cent stake in SAS, while private shareholders hold the rest. (dpa)