SAS Scandinavian Airlines said on Tuesday it was planning a SKr6bn ($726m) rights issue as it launched a drastic restructuring aimed at shrinking its activities and pulling the group out of heavy losses.

Under the “Core SAS” programme, the group said it would be cutting 3,000 jobs in addition to the approximately 5,600 jobs that would be removed through disposals or outsourcing deals. The group’s workforce will be reduced by up to 40 per cent from about 23,000 to 14,000.