Scandinavian carrier SAS Scandinavian Airlines is scaling back operations and preparing fare increases after a sharp surge in jet fuel prices, according to CEO Anko van der Werff to Swedish financial Dagens Industri.
Speaking about the situation, Van der Werff described the development as a major shock to the aviation sector, with the price of aviation fuel having doubled in just ten days. “Even if we try to absorb cost increases as much as possible, this hits the industry directly,” he said.
Fuel typically accounts for around 25–30% of the cost of a flight, making airlines highly vulnerable to sudden price fluctuations. The impact is compounded by the fact that up to one-third of Europe’s aviation fuel supply originates from Gulf countries, increasing exposure to geopolitical instability.
Hundreds of flights already cancelled
In response, SAS has already begun cancelling flights to reduce costs. The airline plans to cut “a couple of hundred” departures during March, with further reductions expected in April.
“After Easter, we will see more cancellations, when demand normally dips,” Van der Werff explained. “For April, we are talking about at least 1,000 departures. But compared to our roughly 800 daily flights, these are not drastic measures.”
Routes with multiple daily frequencies are being targeted first, as these offer the most flexibility for consolidation. At the same time, services to Tel Aviv and Beirut have been paused, while the planned launch of a new direct route between Copenhagen and Dubai in October may be postponed.
Ticket prices already rising
SAS has also started adjusting ticket prices to offset the higher fuel costs. A fuel surcharge has been introduced on new bookings, although passengers who have already purchased tickets will not be affected.
“Once you’ve booked, that price stands,” Van der Werff said. “But those who haven’t yet booked their summer holidays may face higher fares.”
He added that the airline hopes the situation will stabilise by late spring. “By May or June, this should be over. Otherwise, the consequences will extend far beyond aviation and affect the global economy.”
Wider industry impact expected
Beyond fuel itself, rising oil prices are likely to drive up costs across the aviation supply chain. Many suppliers are based in the Middle East and could face operational disruptions, including staff evacuations.
Such disruptions may have long-lasting consequences, even if the geopolitical situation improves quickly. “My experience from 26 years in aviation is that it’s better to prepare for a prolonged crisis and make decisions accordingly,” Van der Werff said.
SAS continues to review its capacity and cost base as the situation evolves, warning that further adjustments may be necessary if fuel prices remain elevated.