SAS has announced that it will cut another 1,000 to 1,500 jobs in a new cost-cutting programme – a move which President and Ceo Mats Jansson has described as 'essential' and 'ultimately about the survival

of SAS'.

The Scandinavian airline hopes to save around SEK.2bn ($278m) with the programme and it is also looking to persuade its pilots and cabin crew to take 10% to 20% cuts in pay and pensions.

This latest cost cutting measure is in addition to the 3,000 job cuts announced last February and it comes at the same time that the airline has announced that it made a net loss of SEK.1.05bn ($146m) in the second quarter of 2009.

‘Additional measures are required to manage the unique, fierce competition in today's highly challenging market,’ said SAS President and Ceo Mats Jansson. ‘Accordingly, it is essential that we now completely close SAS's cost gap with our competitors. This is a matter of competing on equal conditions and, ultimately, about the survival of SAS.’

SAS said its second-quarter results had been hit by falling demand, with sales for the period down to SEK.12.2bn ($1.6bn) from SEK.14.4bn ($2bn) in the same period last year.

In February of this year, SAS – 50% of which is jointly owned by the governments of Sweden, Denmark and Norway – announced a major restructuring package, called Core SAS. The programme involved shedding about 40% of the airline's 23,000 workforce, selling off stakes held in other carriers and raising SEK.6bn ($834m) through a share sale.

As already reported, SAS is handing over its inflight duty free contract to Inflight Service Europe this October, as part of its ongoing outsourcing programme.