COPENHAGEN, (Reuters) – SAS summoned the largest unions of its employees to negotiate as part its efforts to reduce costs and improve flexibility in pandemic-hit operations. This was reported by Jyllands-Posten on Monday.

Anko van der Werff, SAS chief executive said the paper that SAS’ biggest issue is its cost. The paper notes that other airlines are able to fly more flexiblely and efficiently because they cut down on costs. It is important that we can do the same.

Jyllands-Posten stated that the negotiations might last for up to three months.

SAS Shares fell 8.9% on Monday morning in early trading.

Per Hansen from Nordnet said negotiations can be hard.

He stated in a note that “after the strike in 2019, pilots were in a position to negotiate large wages increases for SAS which had no funds at all.”

While the airlines is part-owned jointly by Denmark and Sweden, they have seen an increase in leisure travel during summer, while business travel continues to struggle after the COVID-19 epidemic.

Van der Werff stated to Jyllands-Posten, “We won’t make any money in 2022” and that there will be challenges for 2023. “The effects of the pandemic are expected to last at most three-to four years. That underlines how crucial it is for us to change.”