Despite an increase in demand for air travel across Scandinavia and the wider world, SAS still reported huge losses for the most recent quarter, largely blamed on travel disruption and the 15-day pilot strike that saw the carrier cancel around 4000 flights.
In its latest results, SAS said the pilot strike in July had a severe effect on its overall result, which along with operational disruptions during May, June and July decimated the quarter. However, one of the key events happened on 5th July 5, when SAS voluntarily filed for chapter 11, a legal process for financial restructuring in the U.S.. Chapter 11 process aims to accelerate the implementation of a rescue and restructuring plan.
The airline reported revenues of MSEK 8,580, Income before tax of MSEK -1,991 with net income of MSEK -1,848
SAS says that cost reductions across the whole of the company remains its key focus as it moves forward with the restructuring process and its target of SEK 7.5 billion in annual cost savings. In addition to saving money, SAS is also hoping to raise at least SEK 9.5 billion in new equity and to convert more than SEK 20 billion of debt into common equity.
A key part of the carriers survival has been the support during the quarter the airline has received from the Swedish, Danish and Norwegian governments. All three parties have agreed to convert SAS’ debt and hybrids into common shares. Denmark has also published that, potentially, it may invest new capital, subject to all stakeholders’ participation in SAS FORWARD. However, much remains to be done.
SAS continues to strengthen its North American network and has established direct summer routes to Toronto from Copenhagen and Stockholm. During the coming winter season, SAS will continue to operate all its pre-pandemic U.S. routes.
