SAS Reports Third Quarter Net Loss of $158 Million on 59 Percent Revenue Increase to $462 Million
SAS has reported a third quarter net loss of SEK 1.36 billion (US $158 million) or SEK (0.19) per common share (US $0.022). The airline’s third quarter revenue increased year-over-year by 59 percent to SEK 3.98 billion (US $462 million).
On Wednesday (September 1, 2021), SAS reported their third quarter financial results for the period ending July 31, 2021. The carrier reported a third quarter net loss of SEK 1.36 billion (US $158 million) or SEK (0.19) per share (US $0.022) on a year over year increase in revenue of 59 percent to SEK 3.98 billion (US $462 million). During the third quarter, SAS arranged a credit line of SEK 3.0 billion (US $348 million) with the Danish and Swedish governments for added liquidity, if necessary. The company ended the quarter with SEK 4.4 billion (US $511 million) in cash. After the third quarter, SAS signed pre-delivery financing of $100 million, covering 10 Airbus A320neos scheduled for delivery through the second quarter of FY2023.
In Wednesday’s announcement, SAS’ President and CEO, Anko van der Werff, said in part,
“We noted encouraging signs during the summer season with demand slowly increasing. Vaccination rates are also rising, but significant challenges remain ahead as new cases of the Delta variant are multiplying and delaying ramp-up. The imposed travel restrictions remain in force and continue to adversely affect demand for air travel...
“The recovery of the aviation industry depends greatly on the uncertain development of the pandemic. We are expecting travel to increase gradually as more and more people are vaccinated worldwide, but we are also aware that demand has changed during the pandemic. SAS expects a greater number of leisure travelers and even more intense competition in the future. In addition, customers are booking their tickets closer to their travel dates, which means that flexibility to ramp up and down, will be a success factor in the airline industry going forward.
“I am very happy to be part of SAS’ future and I feel honored to assume the role as President and CEO of Scandinavia’s leading airline, which I take on with great enthusiasm. These are of course difficult times, both for customers and for employees, having to adjust to ever-changing rules and restrictions. In this regard, I would like to recognize the hard work performed by my SAS colleagues, to maintain our performance at a high level and to help customers as much as possible.
“Together with a strong team of dedicated colleagues, we are striving to become the global leader in sustainable aviation, in parallel with navigating our way through the post-pandemic recovery period. It will take time and a lot of hard work, and we will need to make adjustments along the way, but with our great team, strong brand and operational excellence, we will make it happen. On behalf of all of us at SAS, we look forward to welcoming you on board our flights!
At July 31, 2021, SAS had financial net debt of 27.14 billion (US $3.15 billion), an increase of SEK 8.24 billion (US $957.5 million) since October 31, 2020, primarily attributable to negative cash flows, new lease liabilities, a positive trend in the fair value of derivatives and positive currency revaluation.
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 offers an extensive global network.