Scandinavian Airlines (SAS) is considering a new aircraft order to fill the gap between 90-seat CRJs and 180-seat Airbus A320neos, but would need to maintain the benefits of its shift toward single-fleet operations.
The move comes as the airline reported a profit drop for its fiscal 2019 (ended Oct. 31) and warned of slowing growth in 2020 as a whole and a deeper loss in the fiscal 2020 first quarter. 
The airline said it needed to further enhance its operating model to increase productivity and flexibility, noting that around 20% of its destinations are best served by an aircraft sized between an (180-seat) A320neo and a (90-seat) CRJ. 
“Our older 120-150 seat aircraft serving this segment today need to be replaced in the next few years and currently there is no order in place to bridge the gap. Rightsizing of the fleet is crucial from a profitability perspective, but it is also an important part of our journey towards a more sustainable future,” CEO Rickard Gustafson said Dec. 5. 
However, SAS said it needed to be sure that the benefits of single-fleet operations on all platforms remained intact, and that the available aircraft types perform to its standard before placing an order. “We also need to secure competitive duty agreements appropriate for mid-size operation,” SAS said.
SAS’s operating fleet currently comprises 122 aircraft, according to Aviation Week Fleet Data Services, including 23 A320ceo family aircraft, 29 A320neos, 16 A330s and 54 Boeing 737NGs. The airline has 49 A320neos and eight A350-900s on order.
The airline made the announcement as it revealed a sharp fall in fiscal 2019 net income, to SEK621 million ($65 million) from SEK1.6 billion in the previous fiscal year, an “unsatisfactory” result that it blamed on higher fuel costs, unfavorable currency movements and a strike. 
SAS also warned that growth would slow in the coming year. However, passenger numbers grew 2.3% and net income rose to SEK861 million from SEK623 million in the fiscal 2019 fourth quarter. 
“The uncertain economic outlook and emerging slowdown in key economies will negatively impact customer demand,” the airline said. “The continued weakness of the Swedish and Norwegian krona against the US dollar and the euro also remains a challenge. For the forthcoming year, we therefore foresee significantly lower growth, both from a demand and a supply perspective.”
Looking ahead to summer 2020, SAS plans to launch 14 new direct routes and five new destinations from Scandinavia: Bari, Italy; Rhodes, Greece; Tivat, Montenegro; Zadar, Croatia; and Valencia, Spain.