The economic impact of SAS

Background
In response to the challenges posed by the COVID-19 pandemic and intensifying competition in the region, Scandinavian airline (SAS) implemented a broad restructuring program. In this context, SAS requested SEO Amsterdam Economics to conduct an analysis of its economic impact in Scandinavia.

Method
The focus in this report is on SAS’s operations in, departing from and arriving in Scandinavia in 2024. As such, all passenger flights operated by SAS and the associated airports in Scandinavia are in scope. The research starts with an assessment of SAS activity in terms of connectivity. We are analysing the economic interconnections between all sectors, applying an Input-Output model to aviation. This allows for assessment on how airline-airport-related activities, including their employment impacts, influence the economy through a “snowball effect.”

Results
SAS provides connectivity through 13 thousand direct flights per week, serving a total passenger volume of 37.3 million annually. The airline maintains strong connectivity within Scandinavia and to major global hubs, with flights operating to and from 32 Scandinavian airports—ranging from small regional airfields in remote areas to large capital airports such as Oslo, Stockholm, and Copenhagen. Its market share within individual Scandinavian countries is between 25% and 77%. The overall market share across Scandinavia stands at 29%, thus every third flight departing from a Scandinavian airport is operated by SAS. The airport offers direct services to 139 international destinations across 41 countries. Notably, Copenhagen Airport (CPH) has daily connections to 7 out of 10 major global hub airports, enabling extensive onward global connectivity. CPH functions as the primary hub of SAS, facilitating seamless international travel into Scandinavia and Northern Europe more broadly, through its well-integrated network.

Through its operations, SAS directly contributes €3.9 billion in GDP and 23 thousand jobs from its operations and at the airports. Indirectly, they support €4 billion in GDP and 29 thousand jobs through the purchase of goods and services. Additionally, induced effects from wage expenditures contribute €2.5 billion in GDP and 23 thousand jobs. The catalytic impact from related activity from downstream activities is a combined €7.5 billion and 65 thousand jobs. About one-third is from tourism while the remainder can be attributed to productivity, agglomeration benefits, innovation activity in the service sector and trade and international market access. In total, SAS activity is linked to 1.4% of Scandinavian GDP (€17.9 billion) and 1.3% of the labor force (141,000 jobs).