Transport company postpones cost-saving measures

Unexpectedly high income from cargo and tourists mean that national transport company Strandfaraskip Landsins has postponed its planned cost-saving measures.

It emerged last month that the company needed to cut its 2019 budget by DKK 4.7 million to make ends meet.

A temporary solution, which was supposed to come into effect on 1 July, was to increase ticket prices on the Tórshavn-Nólsoy and the Tórshavn-Tvøroyri routes, to expand the company’s ship rental operations and to find savings in the bus services.

Changes put on hold

The company has now decided to postpone these changes until 1 September when the total annual budget becomes clearer. says CEO Hilmar Eliasen.

The reason is unusually high earnings in May and June, which mean that the planned cost-savings can now be postponed and may not even become necessary.

“The weather has been better than we had expected,” says Eliasen. “The Mykines route, for example, was hampered at lot by poor weather this time last year. This was not the case this year, so that, along with other routes such as the Kalsoy route, has been profitable for us.”

Translated by prosa.fo