SAS has reported a fiscal third quarter net loss of SEK 1.848 billion (US $175.4 million) or SEK -0.25 (US $0.024) per common share on a 37 percent year-over-three decline in revenue to SEK 8.6 billion (US $816.8 million).
On Friday (August 26, 2022), SAS reported their financial results for the fiscal third quarter ending July 31, 2022. The carrier reported a third quarter net loss of SEK 1.848 billion (US $175.4 million) or SEK -0.25 (US $0.024) per common share on a revenue decline of 37 percent compared to Q3 FY2019 to SEK 8.6 billion (US $816.8 million). The carrier’s third quarter revenue increased 22 percent compared to the second fiscal quarter of 2022, but financial results were severely impacted by a 15-day pilot strike which occurred between July 4th and July 19th 2022, resulting in approximately 4,000 canceled flights.
In Friday’s announcement, SAS’ President and CEO, Anko van der Werff, said in part,
“SAS results were severely affected by a 15-day pilot strike between July 4 and July 19, causing traffic disruption and leading to some 4,000 canceled flights affecting more than 380,000 passengers. I sincerely apologize to our customers and partners who were affected by the traffic disruptions.
“Overall underlying demand for travel was healthy during the summer quarter and SAS noted an increasing number of passengers eager to travel as restrictions were lifted across the globe. However, the quarter was impacted by major events that influenced the overall result. First and foremost, the 15-day pilot strike in July which had a severe effect on the overall result. In addition, we experienced major operational disruptions during the quarter which affected the whole airline industry. Lastly, on July 5, SAS voluntarily filed for chapter 11, a legal process for financial restructuring in the U.S. The chapter 11 process aims to accelerate the implementation of our transformation plan SAS FORWARD, and ultimately to enable us to become a financially strong, profitable and competitive company for years to come.
“After the close of the quarter, SAS secured a debtor-in-possession (DIP) financing commitment for USD 700 million from Apollo Global Management. This substantial financing commitment is an important milestone in our transformation and it gives us a strong financial position to support our operations throughout the chapter 11 process…”
In the beginning of August, SAS secured debtor-in-possession (DIP) financing totaling US $700 million with funds managed by Apollo Global Management, subject to approval by the U.S. Court by mid-September 2022. SAS ended the fiscal third quarter with a cash balance of SEK 6.1 billion (US $579.6 million). The carrier continues to implement the SAS FORWARD plan launched in the fiscal first quarter of 2022, with the goal of reducing annual costs by approximately SEK 7.5 billion (US $712.2 million). Under SAS Forward, the airline also plans to raise at least SEK 9.5 billion (US $902 million) in new equity and convert over SEK 20.0 billion (US $1.9 billion) of debt into common equity.
SAS is the leading airline in Scandinavia, normally carrying over 30 million passengers annually from its main hubs in Copenhagen, Oslo and Stockholm to 125 destinations in Europe, the US and Asia (pre-pandemic figures). The company has targeted a reduction in carbon emissions by 25 percent by 2025, compared to 2005 levels, and hopes to transition to 100% biofuel for domestic flights by 2030. SAS also offers ground handling services, technical maintenance and cargo services. The carrier is a founding member of the Star Alliance, which is celebrating their 25th anniversary in 2022.
Source: SAS / Cision