SAS Group, owner of Scandinavian Airlines, posted on Wednesday a pretax loss of 1.04 billion Swedish crowns equivalent to $143.5 million as compared with a profit of $131 million for the same quarter a year earlier, signifying further cost cutting measures.

SAS reported an operating loss of SEK942 million for the quarter ended June 30 as compared to an operating profit of SEK150 million last year.

Now, the beleaguered carrier has decided to hack 1,000 to 1,500 jobs. Apart from cutting jobs, the carrier would also trim down pays and pensions of its workers.

Mats Jansson, CEO of the company said, "SAS must compete on the same basis as its competitors, which ultimately is a matter of survival."

World's worst economic recession since Second World War made SAS business to take a nosedive.

As for July, SAS registered an annual fall of 13.6% in its passenger traffic.

SAS shares have dropped about 40% since the beginning of 2009.