Due to the impact of COVID-19, Scandinavian Airlines to reduce 40% of total staff

[Image source=EPA Yonhap News]

[Asia Economy Reporter Lim Cheol-young] Scandinavian Airlines (SAS) is facing operational difficulties due to the COVID-19 pandemic and plans to lay off about 5,000 employees, accounting for 40% of its total workforce.

According to foreign media including Bloomberg on the 28th (local time), SAS announced in a statement that it will implement procedures to reduce about 1,900 employees in Sweden, 1,300 in Norway, and 1,700 in Denmark.

SAS explained the background of this decision by stating, "Summer season activities are expected to be limited," and "It will take several years for demand to recover to pre-COVID-19 levels." SAS had already implemented unpaid leave for 90% of its employees last month.

Furthermore, SAS predicted that although demand will gradually recover, it will be difficult to return to pre-COVID-19 levels until 2022. SAS is a company with the governments of Denmark and Sweden as shareholders. To overcome the crisis, the Swedish and Danish governments announced a $300 million credit guarantee plan, and the Norwegian government announced a €146 million credit guarantee plan.

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