SAS reports third quarter loss of $260 million

On Wednesday, the Scandinavian airline group SAS posted a loss of $260 million for the third quarter, blaming the loss on falling passenger demand for air travel that has resulted from the global economic crisis and the high price of oil.

The carrier’s third quarter loss compared to a profit of $90.2 million for the same quarter last year.

Sales increased slightly, up to $2.13 billion, from $2.10 billion for the same period year ago.

The airline’s financial results were impacted by writedowns totalling $245 million in tax assets and goodwill of its financially-struggling subsidiary Spanair, which was also affected by a deadly crash in August.

Earlier this year SAS announced a $195 million cost-cutting package, and is now indicating that it is looking at additional ways to reduce its operating costs.

“The crisis in the air travel industry strikes indiscriminately,” said the airline’s chief executive, Mats Jansson, who noted that in 2008 so far, 30 airlines had failed.

“Regardless of the choice of structural alternatives and solutions, it is of the utmost importance that we rapidly close the remaining cost gap we have in relation to comparable competitors,” he added.

Last month the airline confirmed that it was in discussions about the future structure of the group, but has declined to comment on the speculation of a Lufthansa takeover.

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