Scandinavian airline launches routes to New York and Shanghai.

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Scandinavian airline SAS will expand its route network with two new long-haul routes, the company said in a statement Wednesday.

Oslo-New York will commence end-March 2011, whilst Copenhagen-Shanghai will start during winter 2011.

"Due to significantly reduced costs, a world-class product and improved market conditions, there are now greater prerequisites for a profitable expansion for SAS. We will improve our customer offering with both new routes and extensively adding new frequencies on existing routes," said Chief Commercial Officer Robin Kamark.

In addition, the loss-making Scandinavian airline will also launch a number of new European routes, as well as significantly increase frequency across its key short haul routes by 150 new weekly departures.

SAS Group, the biggest airline in the Nordic region, narrowed its second quarter net losses to 502 million kronor ($69 million), from 1 billion kronor the same period last year, and said that the company is "well positioned to face the future”.

The airline's shares were up almost 2 percent in midday trading.