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SAS to cancel at least 1,000 flights as fuel costs surge
Airline warns of higher fares and broader cuts if crisis persists
SAS to cancel at least 1,000 flights as fuel costs surge

Scandinavian Airlines (SAS) will cancel at least 1,000 flights in April as sharply rising jet fuel prices linked to the war involving Iran put increasing pressure on operating costs. The move follows initial reductions already implemented in March and reflects a broader adjustment to changing market conditions.

The airline expects further cancellations after the Easter period, when seasonal demand typically declines. SAS currently operates around 800 flights per day, with the planned reductions described as significant but proportionate to overall capacity.

Fuel price spike drives cost increases

According to CEO Anko van der Werff, fuel costs for an average SAS flight have risen by just over 500 Swedish kronor, while transatlantic routes now incur approximately 2,700 kronor in additional operating expenses.

He noted that jet fuel prices doubled within just 10 days, creating immediate financial pressure for airlines. Data from the International Air Transport Association (IATA) indicates that global jet fuel prices have increased by 82.8% over the past month, reaching around 175 US dollars per barrel.

Fuel typically accounts for 25% to 30% of total flight costs, leaving limited room for airlines to absorb such increases, particularly in Europe, where supply is closely tied to producers in the Gulf region.

Network adjustments and route impacts

SAS plans to concentrate flight reductions on routes with multiple daily frequencies, where capacity can be adjusted more flexibly. The airline has already suspended services to Tel Aviv and Beirut.

In addition, the planned launch of a direct route between Copenhagen and Dubai, scheduled for October, may be postponed depending on how the situation evolves.

Passengers likely to face higher fares

The airline has begun adjusting ticket prices through a fuel surcharge introduced last week. Existing bookings will not be affected retroactively, but passengers planning summer travel may encounter higher fares if fuel costs remain elevated.

Van der Werff expressed hope that market conditions could stabilize by May or June, but warned that a prolonged conflict would have far-reaching consequences beyond aviation.

Broader risks for the aviation sector

The CEO also highlighted potential secondary effects, including rising supplier costs across the aviation industry. Disruptions could be exacerbated if suppliers in the Middle East prioritize staff evacuations, potentially affecting supply chains even after the conflict subsides.

Drawing on more than two decades of experience in the aerospace sector, van der Werff cautioned that companies should prepare for an extended period of uncertainty rather than expect a rapid return to normal conditions.

Image Credit: © AA


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