SAS sees “lethal cocktail” for airlines

CEO: “I would be surprised if we didn’t see further consolidation”

A fresh wave of consolidation in the airline industry is the likely outcome of a combination of high fuel prices, a new global economic slowdown, poor demand, spare capacity and little room to raise fare prices. That’s the view of Rickard Gustafson, CEO of SAS, in an interview with the news agency Reuters this week.
“I would be surprised if we didn’t see an accelerated activity in terms of consolidation in the airline industry driven by this situation,” he said. “I do believe that […] when capacity outruns demand in very tough market conditions […] that is a pretty lethal cocktail.”
The Scandinavian airline is, of course, among those carriers predicted to be bought up if any such industry reshuffle takes place. SAS made a loss of SEK 1.6 billion (€180 million) in 2011, due mainly to the bankruptcy of Spanair, and is pressing ahead with cost-cuts and a SEK 5 billion efficiency drive. The airline’s fuel costs in 2011 rose by almost a third to SEK 7.8 billion. No outlook has been given for 2012, but SAS is scheduled to report its first-quarter results on May 3.
[pictured: SAS Boeing 737; courtesy SAS]


Check Also

Star Alliance, airlines, digital, technology, share, data, members, mobile, app, website, seat, book, interoperability

Star Alliance improves digital inter-usability

The alliance creates a digital services platform for customers using more than one member airline.

sas, results, traffic, passengers, January, 2018, capacity, stats

SAS load factor falls dramatically

Scandinavian carrier reports a fall in January in both passenger numbers and load factor.

Widerøe, Oslo, Billund, Bergen, strategy, aviation, Embaer, E2, E190, launch, flights, jet, Finnair, SAS, routes, Norway, Tromso, Bodo

Big moves ahead for Widerøe

One small step for the market, one giant step for Widerøe, Norway’s 84-year-old regional airline, as it steps into the jet era in April 2018.

SAS, Go Light, baggage, luggage, Norwegian, check-in, pay, flex, fare, change, seat

New fees at Norwegian and SAS

Adjustments this year at both SAS and Norwegian mean some passengers will have to pay a bit more.

Magnetic MRO, Tallinn, Estonia, SAS, maintenance, Airbus, A320neo, engineering, outsourcing, Sergei Shkolnik, licence, MRO

New SAS planes to be inspected in Estonia

SAS signs up Magnetic MRO for the maintenance of its new Airbus A320neo.

Northern Europe tour operators merge

Via Hansa and Borealis become Via Hansa & Borealis.