According to a statement released by SAS on Friday, this move is part of the company's plans to improve SAS's long-term position in Finland and the Nordics.
"We strongly feel that this is an important step for Blue1 to strengthen its position on the Nordic market," said John Dueholm, SAS's vice CEO, in the statement.
Blue1 is SAS's regional airline in Finland. By readjusting the company's focus to the Finnish and Nordic market, SAS hopes to boost Blue1's profits.
To this end, SAS will also be phasing out their five remaining Avro RJ-85 airplanes starting in August, and streamline their fleet to Boeing 717.
"This is in line with our Core SAS strategy, focusing on the Nordic market which is our home market," Dueholm said.
It is still unclear which and how many European routes will be affected by SAS's decision.
In 2010, 25.2 million passengers flew with airlines within the SAS Group, making it the eighth largest airline company in Europe.