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Scandinavian Airlines to Cancel Over 1,000 Flights
(MENAFN) Scandinavian Airlines (SAS) has announced it will cancel at least 1,000 departures in April as escalating jet fuel prices tied to the Iran war place growing pressure on operational expenses, CEO Anko van der Werff told Swedish business daily Dagens Industri on Tuesday.
The carrier has already started reducing a few hundred flights in March and anticipates a more extensive round of cancellations after Easter, when seasonal demand generally diminishes. Van der Werff noted that the reductions should be considered in the context of SAS operating around 800 flights daily, describing the measures as significant but not drastic.
The CEO explained that the sharp increase in oil prices has raised costs by slightly more than 500 Swedish kronor ($53.8) for an average SAS flight, while operating a transatlantic journey now costs approximately 2,700 kronor ($290.6) more.
He highlighted that jet fuel prices “had doubled in the span of 10 days,” creating an immediate shock for airlines.
Data from the International Air Transport Association’s (IATA) latest fuel price monitor shows that global average jet fuel prices have jumped 82.8% over the past month to $175 per barrel, dramatically intensifying financial pressure on airlines.
Fuel typically accounts for around 25% to 30% of flight costs, leaving SAS with limited flexibility to absorb the surge, particularly since much of Europe’s jet fuel supply originates from Gulf producers.
Van der Werff indicated that destinations served multiple times a day would likely experience the majority of cuts, as airlines can more easily reduce frequency on these routes. Additionally, SAS has suspended flights to Tel Aviv and Beirut, and the planned October launch of a direct route between Copenhagen and Dubai may face delays.
The carrier has already started reducing a few hundred flights in March and anticipates a more extensive round of cancellations after Easter, when seasonal demand generally diminishes. Van der Werff noted that the reductions should be considered in the context of SAS operating around 800 flights daily, describing the measures as significant but not drastic.
The CEO explained that the sharp increase in oil prices has raised costs by slightly more than 500 Swedish kronor ($53.8) for an average SAS flight, while operating a transatlantic journey now costs approximately 2,700 kronor ($290.6) more.
He highlighted that jet fuel prices “had doubled in the span of 10 days,” creating an immediate shock for airlines.
Data from the International Air Transport Association’s (IATA) latest fuel price monitor shows that global average jet fuel prices have jumped 82.8% over the past month to $175 per barrel, dramatically intensifying financial pressure on airlines.
Fuel typically accounts for around 25% to 30% of flight costs, leaving SAS with limited flexibility to absorb the surge, particularly since much of Europe’s jet fuel supply originates from Gulf producers.
Van der Werff indicated that destinations served multiple times a day would likely experience the majority of cuts, as airlines can more easily reduce frequency on these routes. Additionally, SAS has suspended flights to Tel Aviv and Beirut, and the planned October launch of a direct route between Copenhagen and Dubai may face delays.
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