The company recorded a loss of 411 million kronor ($65.4 million dollars) in the April-June period, down sharply from a 607 million kronor profit 12 months earlier, it said in a statement. Sales however rose 8.7 percent, however, to 17.7 billion kronor.

Mats Jansson, President and CEO, said the following in an SAS Group press statement:

“There is no doubt that the situation in the air-travel industry is serious and probably the most difficult it has ever been. These capacity reductions should be seen in the light of an expected further slowdown in the economy in 2008 and 2009.”

And although he stressed that the group is “financially stable”, he said “it is essential in the short term” that they carry out these cost cutting measures so that their long-term strategy for 2011 may be implemented.

Elizabeth Manzi, press officer at SAS Group reiterated Jansson’s statement and told The Local that the “situation is serious”.

The SAS Group incorporates all the Scandinavian countries’ SAS airlines: SAS Sverige, SAS Danmark, SAS Norge and smaller airlines like Spanair, Blue1, airBaltic and Wideroe. The SAS Group also own SAS Aviation Services which deliver technical and ground services.