Given the lower demand, SAS will aim to reduce part of the airline's transport network capacity over the next few months. In addition to the already suspended flights to and from mainland China, SAS will stop flights to Hong Kong from March 5.
To mitigate the impact of falling demand, SAS is implementing a number of cost reduction measures. In the short term, reduced capacity will reduce flight-related costs, such as aviation fuel, airport charges and more. SAS also implements other measures, such as reducing administrative and personnel costs, freezing rents and postponing non-critical projects, marketing and advertising campaigns. Measures relating to staff expenditure may include temporary lay-offs, voluntary leave, early retirement or other initiatives.
In view of the uncertainty surrounding the outbreak of the virus and its impact on overall air traffic demand, SAS is also revoking its guidelines for fiscal year 2020, presented on December 5, 2019. At this stage, it is too early to assess the full impact on SAS's operations and financials, so it is not possible to give more precise guidance, the airline said.
As a result of the Covid-19 outbreak and global measures taken to reduce the spread of the virus, demand for international air transportation has been affected. As a result, SAS will also discontinue flights to Hong Kong from March 5, in addition to its already suspended flights to and from mainland China.
