Tag Archives: Scandinavian Airlines-SAS

SAS to add 5 new destinations and 14 new routes for Summer 2020

Scandinavian Airlines-SAS has made this announcement:

SAS is continuing to strengthen its seasonal offering and will be launching 14 new direct routes and 5 totally new destinations from Scandinavia in summer 2020 – Bari, Rhodes, Tivat, Zadar and Valencia.

For summer 2020, SAS is offering new direct routes and destinations, as well as increasing the frequency of flights to some of the most popular destinations around southern Europe, around the Mediterranean.

The exciting summer additions from Copenhagen are Bari in Italy, Tivat in Montenegro and Zadar in Croatia – all three of these holiday gems being in the Adriatic – great for those who love the water as well as picturesque, historical surroundings. A fourth new destination from the Danish capital is the classic holiday resort of Rhodes in Greece.

At the same time, Spain is continuing to attract holidaymakers from Scandinavia, so SAS is starting a direct route from Oslo to Valencia. The interest in Spain is also continuing to grow in Denmark and Aarhus, and SAS is increasing the number of flights to Malaga, Palma (Majorca) and Alicante.

From Stockholm, SAS is increasing its frequency of flights and extending its season to Beirut, in response to demand from the many passengers who have discovered the city or who have an affiliation with the region. Luxembourg’s timetable from Arlanda is also expanding with more departures, making it a year-round destination.

The route from Oslo to Kyiv, Ukraine, which was introduced for autumn 2019, will also be continuing over the summer period, making it now a year-round direct route. The connections eastbound from Denmark are also improving when the flights from Copenhagen to Russian Sankt Petersburg start to operate again.

Many of the new routes will be served by Airbus 320neo, the market’s most fuel-efficient aircraft.

SAS summer additions – new destinations and direct routes:

SAS summer additions 2020 Sweden
From Stockholm:
Expanded and extended timetable to Beirut, in Lebanon.
The Luxembourg route is becoming a new year-round destination.

SAS summer additions 2020 Denmark
From Copenhagen:
Bari in Italy, Rhodes in Greece, Tivat in Montenegro, Zadar in Croatia.
From Aarhus:
SAS is launching new routes to Alicante in Spain and Chania on Crete in Greece, while also expanding its offering to Malaga and Palma (Majorca) in Spain.

SAS summer additions 2020 Norway
From Oslo:
Valencia in Spain.
The route from Oslo to Kyiv is becoming a new year-round destination.Bergen:
New route to Bergen from Barcelona.Haugesund:
New route from Haugesund to Copenhagen.

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SAS unveils its new livery

Scandinavian Airlines-SAS has made this announcement:

For the first time in 21 years, SAS has launched a brand new visual identity and revealed a new design for its aircraft exterior. The new livery is a modern take on classic Scandinavian design, and to highlight the future of SAS, the new Airbus A350 and A320neo, the market’s most modern and fuel-efficient aircraft, will be the first to feature the new design.

Implemented alongside an extensive fleet renewal, SAS presents a modern and new upgrade of its livery design.

Following new SAS cabin and onboard concepts introduced in 2015, the new livery launched today fulfills an ambition to align the exterior and interior of SAS.

“The new livery design is a symbol of our future, a more sustainable and competitive future for SAS, but one that also embraces our heritage. Travelers from Scandinavia will recognize their home, while global travelers will encounter the renowned feeling of the Nordics,” says Rickard Gustafson, President and CEO at SAS.

Customer analysis shows that travelers are proud to be part of the SAS community and that the unique blue color, which has become SAS’ signature, together with the logo, are among the strongest elements when travelers highlight their feelings towards the SAS brand.

In this spirit, the new livery embraces this unique relationship by extending the blue color of the tail further down the fuselage and by adding a new big silver SAS logo to the front of the aircraft.

“Crucial to the successful relationship with our travelers, is the thousands of SAS employees who provide passengers with top class travel experiences and service every day. They are the face of our brand and their commitment is key to a more sustainable and competitive future,” Rickard Gustafson says.

The roll-out of the new SAS livery will follow the normal maintenance program of the aircraft, meaning the existing fleet will be updated with the new livery in accordance to an already scheduled repaint process each 5-6 years. All SAS aircraft will feature the new livery by 2024.

SAS has chosen an advanced coating material, provided by AkzoNobel, allowing fewer layers of color to be added. This reduces the weight of the aircraft significantly and translates into fuel savings as well as reduced CO2 emissions. Furthermore, the paint contains less toxins than conventional paint systems, while the increased durability allows for longer intervals between complete repaints.

The new Airbus A350 and A320neo, the market’s most modern and fuel-efficient aircraft, will be among the first to feature the new livery. In total, as a part the modernization of the short and long-haul fleet, SAS will take delivery of new Airbus A320neo (80), Airbus A330 Enhanced (5), Airbus A350 (8), and Airbus A321LR (3) aircraft before the end of 2023.

The new SAS livery features several updates, including:

  •  The previous grey color used on the fuselage has been updated to a fresher shade of grey.
  •  A big proud and confident SAS logo has been placed at the front of the plane, in a silver grey tone.
  •  Analysis and customer feedback showed that the unique SAS blue color is strongly recognized by the community of SAS travelers. The new SAS livery embraces this unique relation between SAS and true travelers by enhancing and extending the blue color of the tail further down the belly of the plane.
  •  The earlier red engines have now been turned into silver grey and dressed with SAS blue crowns to harmonize with the SAS current visual identity, and to also embrace the connection to the SAS blue for SAS true travelers.
  •  The word mark “Scandinavian” is still located on the engines, but it is now in dark grey, in order to provide sufficient contrast to the light grey and silver color of the fuselage and to flirt with the SAS interior design color scheme.
  •  The word “Scandinavian” has also been largely and proudly placed under the plane on the belly as a symbol for SAS’s Scandinavian heritage and for clear visual identification from the ground.
  •  The Scandinavian heritage is also shown in the three Scandinavian flags that have been updated in a modern, elegant way.

SAS travelers can now buy biofuel

Scandinavian Airlines-SAS has made this announcement:

Travelers flying with SAS can now voluntarily choose to buy biofuel and so help reduce climate-affecting CO2 emissions by up to 80 percent. The new non-profit service aims to pioneer a large-scale and competitive market for biofuel within aviation, in line with SAS’ sustainability strategy.

SAS is now launching a new ancillary product that gives travelers the option to reduce their climate impact. This means that travelers can purchase biofuel when booking a ticket, or at any time before departure.

Biofuel, which reduces climate-affecting CO2 emissions by up to 80 percent compared to conventional jet fuel, is a key enabler to make flying more sustainable and reach SAS’ target to reduce CO2 emissions by 25 percent by 2030. SAS is pushing for large-scale production of advanced biofuel in Scandinavia. The volumes being produced today are not enough and the price is 3-4 times higher than for conventional jet fuel.

SAS makes no profit on the contribution from travelers and it will be added to the biofuels already purchased by SAS.

Facts about SAS and Sustainable Aviation Fuel (biofuel)

SAS only uses biofuel made from sources not affecting the availability of crops used in food production, access to potable water, biodiversity, and that use as small an area of land as possible.
Biofuel is delivered to SAS at the hubs in Stockholm, Oslo and Copenhagen, or at a suitable airport as close as possible to the production facility. Legislation allows for up to 50 percent of biofuel to be used per flight. All SAS aircrafts are certified to be able to mix 50/50 fossil jet fuel and biofuel.

SAS continuously collaborates with various stakeholders to promote, commercialize and implement biofuels. In 2018, SAS and Preem signed an agreement to jointly ensure the large-scale production of biofuel.

This is how the new service works

SAS has created a model where travelers can purchase biofuel corresponding to 20-minute blocks of flight time for one passenger. On a 60-minute flight, one 20-minute block of biofuel will correspond to a third of the average fuel consumption per passenger, based on an average flight. For example, to buy extra biofuel for a ticket on a 60-minute flight, a traveler would have to purchase three blocks to cover the full flight time.

Travelers can buy biofuel when booking flight tickets, or at any other time before departure under ‘My bookings’. The amount of biofuel will not necessarily be used on the actual flight the traveler has bought a ticket for, but it will be used to replace fossil jet fuel to the equivalent amount in SAS’ operations.

Currently (Sept 2019), prices are set at 10 USD/ 10 EUR per block of biofuel.

SAS opens new route to Seville from Stockholm

Scandinavian Airlines-SAS has made this announcement:

From February 29, 2020, SAS will fly to Seville, in Spain, from Stockholm, Arlanda. The new direct route to the Andalucian capital will be operated on Saturdays until May 16, 2020.

SAS will fly the route to Seville with the new Airbus A320neo aircraft.

Seville becomes the sixth destination for SAS in Spain from Sweden along with Alicante, Barcelona, ​​Gran Canaria, Palma de Mallorca and Malaga.

SAS aircraft photo gallery:

SAS to introduce a new livery on its first Airbus A350-900

Scandinavian Airlines-SAS is planning to introduce a new look on its first Airbus A350-900 (SE-RSA). The new livery will be unveiled on September 19 at a press conference in Copenhagen.

The airline is teasing the announcement on social media.

The first Airbus A350-900 will arrive in the fourth quarter 2019.

SAS to add Copenhagen – Los Angeles service

Scandinavian Airlines-SAS made this announcement:

SAS is opening a year-round route to Los Angeles from Copenhagen. The first flight will be in January 2020. Big demand from leisure travelers in Denmark and a more attractive timetable with daily flights mean that the route will be part of the flight program from the new year.

Big demand from customers in Denmark and North Europe, and a timetable from six to seven departures a week were some of the deciding factors behind opening the route from Copenhagen. There will be daily departures from Copenhagen Airport starting in March.

To date, SAS has operated the route from Stockholm to Los Angeles, but has now decided to relocate flights departing from the Swedish capital to the Danish capital in the new year.

Flights from Copenhagen to Los Angeles can be booked from September 3, 2019. The first flight departs January 13, 2020.

The new time schedule for the route starting January 13th:

Flight SK931 departs from CPH 09:35 and arrives in Los Angeles 12:15 the same day.
Flight SK932 departs from Los Angeles 14:00 and arrives in CPH 10:10 the day after.

Starting on March 31st there will be daily departures from Copenhagen.

SAS reports improved operational performance during the peak summer season

Scandinavian Airlines-SAS issued this financial report:

MAY 2019–JULY 2019

  • Revenue: MSEK 13,552 (13,146)
  • Income before tax (EBT): MSEK 1,490 (2,034)
  • Income before tax and items affecting comparability: MSEK 1,495 (2,008)
  • Net income for the period: MSEK 1,162 (1,570)
  • Earnings per common share SEK 3.04 (4.04)
  • Income before tax negatively affected by strike MSEK -185

SIGNIFICANT EVENTS DURING THE QUARTER

  • SAS reports record number of passengers in June and July
  • SAS and Airbus enter into joint research project on hybrid and electric aircraft in commercial traffic
  • Pilot strike for two days at the beginning of the quarter resulting in 1,200 cancelled flights and 100,000 affected passengers

SIGNIFICANT EVENTS AFTER THE QUARTER ENDED

  • SAS announces new organizational structure effective from 1 October

NOVEMBER 2018–JULY 2019

  • Revenue: MSEK 33,273 (32,040)
  • Income before tax (EBT): MSEK -302 (1,261)
  • Income before tax and items affecting comparability:MSEK -440 (1,314)
  • Net income for the period: MSEK -240 (972)
  • Earnings per common share: SEK -0.65 (2.16)
  • Income before tax negatively affected by strike MSEK -615

COMMENTS BY THE CEO

The third quarter was characterized by strong operational performance together with successful seasonal adaptation, resulting in record passenger numbers and increased revenue in the peak season. Although the revenue increase is encouraging, the prevailing macroeconomic headwinds require improved efficiency to secure competitiveness and long-term profitability.

Total revenue ended at MSEK 13,552, representing an increase of over 3% compared with the same quarter last year. The decline in capacity caused by the pilot strike was compensated by increased passenger revenue. Moreover, SAS posted a continued positive trend in the sale of EuroBonus points and ancillary revenue.

Earnings before tax and items affecting comparability, came in at MSEK 1,495, a disappointing decrease of MSEK 513 year-on-year. The decline was mainly attributable to increased fuel costs, the Swedish krona’s continued weakness against the US dollar, as well as the pilot strike at the beginning of the quarter. However, it is encouraging to note that our successful adaptation to seasonal demand and improved operational quality led to a strong customer uptake and an increased yield, thereby mitigating parts of the additional costs incurred during the quarter.

Notably, the headwind stemming from a weak SEK and signs of a slowdown in the European economy, accentuate the need for SAS to adapt operations to current market conditions and accelerate the transformation agenda to secure long-term profitability beyond 2020.

IMPROVED OPERATIONAL EFFICIENCY AND SEASONAL ADAPTATION

SAS has its peak season during the third quarter, with strong demand from both leisure and business passengers. In recent years, we have adapted our offering to meet customer demand by shifting summer capacity toward leisure-oriented routes. This year we launched 25 new routes in our summer program, whereof five brand new destinations: Florence, Marseille, Szczecin, Cornwall and Oulu. The capacity shift has proven to be successful and we were able to report new records for passenger numbers in both June and July.

Demand for domestic flights in Norway and Denmark remains strong and we continue to post healthy growth compared to last year. Even in the declining market for domestic flights in Sweden, the number of passengers that chose to travel with SAS remained at the same levels as last year. We view this as proof of an attractive customer offering.

Looking ahead, forecasts for the remainder of the year indicate a market capacity growth of approximately 1% for the full year 2019 and early indications point to moderate growth in 2020 as well. This is a trend shift from recent years, where annual capacity growth has been 3-4% per annum. In the near term, this moderate growth outlook is encouraging and should help improve the supply/demand balance, which should be beneficial for the Scandinavian market. However, in the longer term, the significant order book of new aircraft to be delivered until 2024 carries a risk of structural overcapacity in the European airspace.

In terms of operational quality, we recorded a strong improvement compared to the same period last year when we faced a number of operational challenges. Since then, we have taken several actions to improve stability and avoid traffic disruption. We have recruited and trained more seasonal staff in ground handling and technical maintenance. Moreover, we have added two spare aircraft, implemented a new disruption module, and selectively adjusted the network to optimize the reallocation of buffers and stand-by capacity. As a result, we have throughout the summer delivered operational regularity well above 99%. What makes me particularly proud is that we were able to deliver the same operational robustness across all production platforms, thereby resulting in generally improved customer satisfaction.

ROADMAP TOWARDS FURTHER EFFICIENCY IMPROVEMENTS

Our current efficiency improvement program targets SEK 3 billion in efficiency improvements by 2020 to strengthen competitiveness and mitigate some of the annual cost inflation. In the third quarter, our efficiency program delivered over MSEK 230 and in the year to date we have realized MSEK 626 in savings. Since 2017 the program has realized SEK 2.1 billion out of the targeted SEK 3 billion.

Although we stay firm on our target of delivering MSEK 900 in savings for the fiscal year 2019, our unit cost, after adjustment for strike effects, is not decreasing to the extent we wish. This means that we need to look at additional initiatives beyond 2020.

The renewal of our fleet is one important component, since it moves SAS to a single-type fleet which decreases complexity in the organization and thereby costs. Another component is to further optimize our operating model based on three production platforms to further boost flexibility and efficiency.

Another area of importance is our continued digitalization efforts to further support revenue growth, decrease costs and at the same time add value for our customers. These include utilizing digital tools to improve planning, both for assets and for crew. This will ensure continued stable production as well as optimize organizational efficiency. Other efforts include the introduction of predictive maintenance for our aircraft and other automation to increase efficiency. Personalized customer offerings, on-board high-speed WiFi and improved self-service possibilities, are other areas which are aimed directly at our customers to safeguard our strong value proposition and attractiveness.

To accelerate our efficiency efforts and drive accountability, a new Group Management organizational structure will be implemented as of 1 October 2019. Our current Operations unit will be divided into Airline Operations, with responsibility for airline operations across all production platforms, and Airline Services, with responsibility for Ground Handling, Technical Maintenance and Cargo. Furthermore, all sales, marketing and commercial units will be consolidated under one Commercial entity. With the new Group Management team in place, we are committed to deliver on our accelerated transformation agenda as well as the additional initiatives needed to increase efficiency across the organization.

CONTINUED PROGRESS IN DECREASING CLIMATE IMPACT

At SAS, we are currently working on several activities to reduce our negative climate footprint. The delivery of new and more fuel-efficient aircraft is a cornerstone in our endeavor to reduce carbon emissions. With new aircraft from Airbus, our emissions will be reduced with up to 18% on short-haul and up to 30% on long-haul flights. We have also replaced the interiors in our existing aircraft and decided to remove tax-free sales onboard to reduce weight and fuel consumption. Moreover, we continuously strive to reduce plastic consumables and food waste onboard.

SAS is also engaged in a joint research project together with Airbus related to the electrification of aircraft for large-scale commercial usage in the future. In order to bridge the gap to zero emission aircraft, we believe that an important step is to increase the usage of renewable fuels to reduce emissions more rapidly. SAS is pushing for large-scale production of advanced renewable fuel in Scandinavia. The volumes being produced today are simply not enough and the price is 3-4 times higher than for conventional jet fuel. During the quarter, we added the possibility for our customers to purchase biofuel (at cost), in addition to the amount of biofuel SAS is already using. We believe that this provides an opportunity for customers to contribute and creates transparency around the additional costs for biofuel.

In the meantime, we are also addressing the CO2 emissions that we cannot eliminate with today’s technology. During the quarter we had compensated for over 3.5 million journeys with SAS, representing 38% of the total passenger-related CO2 emissions in the third quarter.

OUTLOOK

Even though the capacity outlook and recent decline in jet fuel price are positives, several challenges remain unchanged since our Q2 report. This includes the continued weakness of the Swedish krona against the US dollar and the Euro, as well as an emerging slowdown in the European and global economies.

Although we are in the process of adapting to current market conditions, the journey towards an even more efficient and effective SAS will require additional time and effort. Therefore, we reiterate our full year outlook that it will be challenging to reach a positive result before tax and items affecting comparability for FY2019.

I thank you for your interest in SAS and look forward to welcoming you aboard one of our 800 daily flights!

Stockholm 27 August 2019

Rickard Gustafson,

President and CEO

SAS Photo Gallery: