CEO blames economic uncertainty and continued high fuel prices
As part of its efforts to cut costs by 3 to 5% annually, Scandinavian airline group SAS AB has decided to lay off 300 administrative employees. The company says that the sackings, which are in administrative positions, and other measures are necessary for it to slash costs by approximately 2 billion kronor ($288 million) in 2012 and ultimately improve its competitiveness. The airline’s shares rose immediately on the Stockholm Stock Exchange.
The effort to cut costs is needed more than ever this year, CEO Rickard Gustafson argues, because of “increased economic uncertainty, increased pressure on yields in the airline industry and continued high fuel prices.”
[pictured: SAS Economy Extra; courtesy SAS]