SAS is correct to raise the possibility that coronavirus will stick around. If the number of cases in Europe continues to rise as we head through the rest of the year, the impact on airlines in the region is only going to increase. The big caveat though, is that fuel prices are likely to remain pretty low in that scenario.
For long-haul flights SAS lacks the size and scale to compete with its much larger European competitors. On short-haul routes the airline can't compete with the cost structure of the continent's strongest low-cost-carriers. But there's one place it probably does have an edge: its onboard food.
It's a tough time to be a small, full-service airline in Europe. But SAS CEO Rickard Gustafson is trying to ensure his airline can compete both with low cost airlines, like Norwegian, and massive legacy airlines like Lufthansa Group and Air France-KLM.
This week's companies are from completely opposite corners of the world, but their similar approach to branding shows the universal trends in travel marketing.
The unprofitable SAS has gone through many restructuring and cost-cutting initiatives, and although it must retain Norwegian Air to compete in the short-haul market, puddle jumpers are an asset worth dumping.