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SAS records higher losses in the third quarter after the strike

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COPENHAGEN/STOCKHOLM, Aug 26 – Scandinavian airline SAS posted bigger losses in the May-July period on Friday than a year earlier, saying it remains cautious as winter approaches due to COVID-19 restrictions. and political uncertainties.

SAS, hit by the pandemic and pressured by low-cost rivals, filed for bankruptcy protection last month as its pilots went on a two-week strike, hoping to emerge within nine to 12 months as just another airline. competitive.

The airline posted a pre-tax loss in the third quarter of 1.99 billion Swedish kronor ($188 million), compared with a loss of 1.33 billion kroner in the previous year.

“The quarter was affected by important events that influenced the overall result. First of all, the 15-day pilot strike in July, which had a serious effect on the overall result,” SAS said in a statement, adding that the underlying travel demand was healthy in the quarter.

To date, the financial impact of the strike has been SEK 1.4 billion, it said.

Per Hansen, an analyst at Nordnet, said that with losses continuing, the coming quarters will also be difficult and challenging.

“This quarter (May-July) is typically the one that SAS makes its money along with the current quarter,” Hansen said in a note.

The airline’s chief executive, Anko van der Werff, said more than half of the 20 billion Swedish kronor that SAS intends to turn into capital had been agreed, while there was “good progress” in the bankruptcy protection procedure. .

SAS also intends to raise SEK 9.5 billion in capital.

SAS recently agreed to a $700 million bridge financing with Apollo Global Management to finance its reorganization under the protection of Chapter 11 of the US Bankruptcy Law, although the loan is subject to court approval.


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