Pilot Strike Threatens Survival Of SAS

Wage negotiations between Scandinavian airline SAS and its pilots broke down on Monday, July 4, 2022, resulting in a strike that jeopardizes the carrier's viability and adds to travel disruption across Europe as the busy summer vacation period begins.

Photo Insert: A strike may cost SAS approximately 100 million Swedish crowns ($10 million) every day.

The action is the first big airline strike to occur at a time when the industry is attempting to capitalize on the first full recovery in leisure travel following the pandemic, according to Reuters' Anna Ringstrom, Essi Lehto, and Supantha Mukherjee.

It comes after months of squabbles between employees and management as the airline tries to recover from the impact of lockdowns without incurring expenditures that it fears will render it unable to compete.

At the same time, employees across Europe are seeking salary increases as inflation continues to grow.

A strike may cost SAS approximately 100 million Swedish crowns ($10 million) every day, according to Sydbank analyst Jacob Pedersen, and future ticket sales will suffer. By 1511 GMT(11:11p.m. in Manila), SAS shares were down 4.7 percent.

"A strike at this point is devastating for SAS and puts the company's future together with the jobs of thousands of colleagues at stake," SAS Chief Executive Anko van der Werff said in a statement.

"The decision to go on strike now demonstrates reckless behavior from the pilots' unions and a shockingly low understanding of the critical situation that SAS is in."

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