After weak quarter, Scandinavian airline SAS cuts 300 jobs, makes new savings of $150 million

HELSINKI – Scandinavian airline group SAS says it will make more cutbacks, including 300 layoffs, after the company’s second-quarter net loss doubled to 800 million kronor ($120 million) and revenue dipped 15 per cent in the period.

CEO Rickard Gustafson described the result as “deeply disappointing” and well below expectations. He said Wednesday that the airline now plans savings of 1 billion kronor during the 2014-2015 fiscal year.

Net sales in the February to April period were 8.5 billion kronor compared with 9.9 billion kronor a year earlier.

Facing stiff competition from budget airlines and high expenses, SAS embarked on a wide restructuring plan in November 2012.