SAS to step up efficiency drive amid macroeconomic headwinds

SAS Tuesday pledged to step-up its efficiency measures amid macroeconomic headwinds, and reiterated that achieving a positive pre-tax pre-items result this year will be challenging. Capacity outlook and a recent decline in jet-fuel price are positives but several challenges remain, including the continued weakness of the Swedish krona against the US dollar and the euro, and the slowdown in the European and global economies. “Although we are in the process of adapting to current market conditions, the journey towards an even more efficient and effective SAS will require additional time and effort,” CE Rickard Gustafson said. SAS is targeting SEK900m (US$93.6m) in savings for the fiscal year 2019 as part of a multi-year SEK3b savings program, but SAS cautioned Tuesday that costs aren’t decreasing enough. <br/>