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SAS

‘Weak numbers’: Scandinavian airline SAS files loss in latest result 

Economic headwinds are continuing for Scandinavian airline SAS, which has posted a loss of 2.7 billion Swedish kronor for the first quarter of this year.

‘Weak numbers’: Scandinavian airline SAS files loss in latest result 
A SAS aircraft at Los Angeles International Airport in 2021. The Scandinavian airline has posted another disappointing quarterly result but remains bullish in its financial report. Photo by Beckett P on Unsplash

Scandinavian airline SAS has posted a loss of 2.7 billion Swedish kronor (1.8 billion Danish kroner) for the last three months ending in January.

The loss is around 300 million kronor more than the one registered in the same period last year, Danish news wire Ritzau reports.

The result covers the period from November to January.

Although revenue increased by 2.3 billion kronor compared with 12 months earlier, profit did not keep pace due to higher costs.

SAS has been in a restructuring process since summer 2022 as part of its SAS Forward plan, and has applied for Chapter 11 bankruptcy protection in the US.

CEO Anko van der Werff cited an increase in passenger numbers by 48 percent compared to last year as a positive element of the result.

“We are happy that so many passengers are returning to SAS,” he said in the statement.

Around 4.5 million passengers flew with SAS in the last quarter. A year prior, travel was still largely restricted due to the coronavirus pandemic.

But SAS’ failure to raise its profit amid the increase in passengers is disappointing for the airline according to stock market analyst Jacob Pedersen of Sydbank.

“You would think that SAS would earn more money when their passenger numbers go up by almost 50 percent but they didn’t,” Pedersen told Danish news wire Ritzau.

“In that sense these are really weak numbers,” he said.

But the company is showing self-confidence by raising its economic forecast for this year, he also said.

“Especially when you consider that there’s an outlook for in recession in Europe later this year,” he said.

“Things don’t usually go well for airlines during periods of recession,” he said.

SAS expects its revenues next year to approach the level seen prior to the pandemic.

In 2025 the company expects to earn “more than 49 billion Swedish kronor” according to its latest financial report. That is an adjustment upwards from previous expectations.

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TOURISM

Where in Norway do they dislike tourists? 

Norway can be considered a very tourist-friendly country, and visitors are welcome almost everywhere. Still, there are some areas where locals have had issues with travellers. 

Where in Norway do they dislike tourists? 

Due to its mixture of vibrant cities and stunning natural beauty, Norway is an all-year-round destination, and tourists are attracted to all corners of the country. 

However, not all countries with a booming tourism trade have a track record for being friendly or welcoming towards tourists. 

Norway is generally welcoming to visitors from abroad. This contrasts with some countries, like France, where the locals have developed a reputation for being rude to tourists. 

While reserved, Norwegians can be considered very polite and have high English language proficiency, meaning they are willing and able to help tourists. 

Still, there are some areas of the country where tourists are less welcome and where the locals may be frustrated by the presence of tourists. 

So, where aren’t tourists welcome, and why? 

Tourists are generally less likely to be welcomed in more rural areas with a large influx of visitors. These include mountainous areas like the Lofoten region, cruise ports in Flåm or Geiranger, or nature spots like Trolltunga and Preikestolen (Pulpit Rock). 

Some smaller cities have also seen locals push back against tourists, an example being Ålesund on the west coast of Norway, where many busses have caused issues at the city’s famous outlook point. 

The reasons why tourists are disliked in some of these areas are a combination of factors, and over-tourism is the first. 

READ ALSO: Are Norway’s top attractions at risk of over-tourism?

There is an argument to be made that too many tourists are visiting these locations, and there isn’t enough capacity for local services, or the sheer number of tourists is damaging the surrounding nature. 

In recent years, there have been issues with roads and parking areas near Pulpit Rock due to congestion. Furthermore, the number of tourists who visit the site has been limited to prevent trails from becoming ruined. 

For example, the cost of maintaining tourist trails could otherwise be spent on local health care or schools. 

Concerns have also been raised that cruise ships are polluting Norway’s fjords. This led to the government adopting environmental legislation in 2018 to ensure that ferries and cruise ships would need to be environmentally friendly to sail in the UNESCO heritage fjords from 2026. 

This degradation of nature naturally upsets locals living in the area as they don’t want to see such precious natural resources ruined.

Furthermore, many cruise ports are located in small villages and towns, meaning that during peak season, the tens of thousands of tourists easily outnumber the full-time residents. 

Some places have seen posters urging cruise tourists to “go home.” However, locals’ anger is mainly directed towards cruise companies rather than tourists.

This issue isn’t entirely to blame on tourists, either. While they ultimately book the vacations, the travel industry sells the trips and contributes to local bottlenecks.

In some cases, local economies are dependent on tourism revenue and are unwilling to limit the number of visitors. 

In the case of the UNESCO fjords threatened by pollution, local politicians had debated dropping the UNESCO title to ensure cruise ships can still get into the Geirangerfjord and Nærøyfjord to protect the local economy

In some cases, though, it’s the actions of tourists that also contribute to their bad reputation. Illegal parking and poor driving in Lofoten, primarily by tourists, led to the local authorities cracking down

Hefty fines of 900 kroner were implemented to try and curb the issues with foreign drivers. 

Some tourists also take Norway’s nature and laws making it accessible for granted. Littering and people leaving behind human waste have been issues at camping locations and on mountain trails for years. 

People mistaking the public right of access rules in Norway to camp where they shouldn’t be has also caused problems. 

Another issue has been ill-prepared tourists trying to tackle some of the tougher-to-access nature spots without proper gear or preparation. 

When they inevitably need rescuing, locals are left annoyed as it wastes resources that could be better used elsewhere. 

Essentially, these issues are due to pure carelessness and a lack of respect for the locals and their surroundings. 

Some also resent that some tourists pay vast sums to travel firms but want to avoid spending money locally. 

What can be done about this? 

In some cases, it can be a case of tourists just ensuring they behave themselves in the hope they can contribute to a changing narrative in these areas. 

Travelling out of season can also prevent the bottlenecks that threaten nature and disrupt the lives of locals. This also means fewer crowds and queues for you. 

In some cases, this isn’t possible; for example, many mountains are closed during the winter for safety reasons. 

In other cases, it’s more about what local authorities and the government can do. 

Several areas affected by over-tourism have expressed an interest in trialling a long-proposed tourist tax. They argue that tourists contributing to the maintenance of paths and trails would take a significant burden off the local authorities that are left to foot the bill. 

Some businesses can also take individual action. Fjellstua, one of Ålesund’s most popular attractions, has introduced gates to prevent overcrowding and vandalism.  

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