Chief commercial officer Eivind Roald said in 2016 the airline’s leisure market traffic had grown by 9% compared with 2-3% for those travelling for work.
While he was quick to stress the impact on the business market was not due to last June’s Brexit vote, he admitted the pound’s ensuing fall against the dollar had impacted the oil industry which drives much of the sector.
Roald said: “We have seen an effect on business traffic, specifically with the oil industry and in the northern part of the UK in both Edinburgh and Aberdeen.
“It is a challenge, I have to be honest about it and it hasn’t come back. Prices are down, traffic is down but that’s the reality.”
However, despite the slowing growth Roald added SAS would still be going ahead with the building of a new base at Heathrow.
The new operations are due to be up and running for the forthcoming winter season with between eight and nine aircraft ultimately based at the airport.
Roald said: “We are the fourth largest airline at Heathrow; we have been around there for so many years.”
However, he added the aircraft would all be facing north-east with routes to Bergen, Oslo and Stockholm most likely on the cards.
He said the main reason behind the decision was the lower cost of staff in the UK, with lower taxes meaning they are about 30-40% cheaper to employ, which he said should drive further route development.
Roald added: “If you are able to make your European route structure even more profitable you can grow as a company because it will be even easier for the board to say yes [to expansion] and put in orders for more long-haul aircraft.”
The base would be one of two new facilties in Europe, with the other in Spain, while a new air operator certificate is being applied for in Ireland.
