Airline looks for other ways to make cuts
Talks between SAS and trade unions over more cuts to the carrier's operation have broken down.
SAS said that despite "certain progress" no agreement with the airline's 39 unions was reached.
It said it would now look at identifying other ways to reduce its costs.
The talks were initiated by the airline, equally owned by the governments of Sweden, Denmark and Norway.
It put a summer deadline on the talks because of the "extensive crisis that the airline industry is currently in."
Mats Jansson, SAS Group president and ceo, said: "We have made certain progress in the last two weeks, but have not been able to reach an agreement that provide long-term or substantial cost reductions, without the agreements being linked to impossible conditions or met with counter demands.
"This unfortunately means that we have not reached the necessary cost savings.
Group management will now together with the board immediately focus on finding other means and actions to lower our costs."
SAS posted a first quarter pre-tax loss of SEK1,024m (€95m) in April blaming on weak loads brought on by the global recession.
It said at the time that cuts incurred as part of its Core SAS re-structuring programme had resulted in 500 job losses and the withdrawal of 18 aircraft and had cost it SEK95m (€8.8m).
The Group said it had sold its 80.1% stake in Spanair and shares in Latvian national airline airBaltic and planned to sell its 20% stake in bmi.