Business Travel Show Europe Kick Off, 23 February,
Global Travel Risk Summit Europe, May 2023,
3rd Annual Sustainable Business Travel Summit
SAS is to cut 1,000 jobs and reduce capacity after a heavy pre-tax loss of SEK973m (104m) in the first quarter of the year.The loss compares with a deficit of SEK94m (10m) for the same quarter in 2007.In response the airline announced a package of short term measures to increase earnings by SEK1.1bn (118m) this year.Profit 2008 will see a cut of 1,000 full time jobs, a cut in capacity of 11 aircraft - about 5% of total capacity - as well as the postponement of the delivery of a long haul aircraft, priced increases and "additional efficiencies."The airline blamed "rapidly increasing fuel prices, increasing overcapacity and consequent pressure on yield” for the measures."Mats Jansson, its president and ceo, also noted that there were "tendencies toward a decline in business travel." In a statement, Mr Jansson said: "The negative earnings trend we experienced in November and December last year continued in the first quarter of 2008."The primary reason for this is the rapid rise in jet fuel prices to record high levels that could not be offset, while unit earnings fell as a result of further intensification of competition."There is also certain overcapacity in the market and tendencies toward a decline in business travel."Managing this market situation is currently a challenge faced by the entire air-travel industry."We have seen how companies in the local market have adjusted their forecasts downward at the same time as carriers in the US and Asia have filed for bankruptcy."Consolidation in the industry on a global scale is continuing with full force."He also warned that the trends in the industry "are so serious that we must prepare for a more enduring economic downturn."
UK Hotels hit by Easter slowdown
UK hotels suffered drops in occupancy and room rates during the early Easter break, according to the latest survey by PKF Hotel Consultancy.London was the only city to experience a rise in room rates from Â£124.13 to Â£124.87 but it also saw a slight drop in occupancy from 81.3% last March to 79.5% this year.Robert Barnard, partner for Hotel Consultancy Services at PKF, said: "The slowdown in the March figures is most likely explained by the early Easter holiday."In March 2007 there would have been a good deal more business travellers to UK cities, whereas this year more people will have been taking a break from work and business travel to spend time with their families. "I would expect to see the exact contrast in April with more business travellers in 2008 compared to 2007 boosting hotel occupancy."TRI Hospitality Consulting also reported a drop in business in UK hotels in March.Its survey of 520 properties, mainly business hotels, found an 8.8% drop in income before fixed charges, a 1.6% fall in occupancy to 65.1% and a 1.3% drop in revenue per available room. Jonathan Langston, TRI's managing director, said: "Although some chain hoteliers enjoy an increase in leisure demand during Easter, it tends not to compensate for the losses in rate and volume from the corporate market."