SAS assures profits as share trading resumes

SAS assures profits as share trading resumes
Scandinavian Airlines, SAS, rumoured to be verging on bankruptcy, assured on Tuesday that it expected to report a quarterly profit, triggering a surge for its shares.

The ailing airline said it would launch a restructuring programme, after media speculation prompted a suspension of trading in SAS shares.

When trading was resumed after the statement, the shares rallied by 16.24 percent in a market that was 0.26 percent higher.

“Following numerous rumours in Scandinavian media, SAS announces that it will report on November 8 a positive result for the third quarter, with a pre-tax profit of 568 million kronor ($85.2 million),” the group said in a statement.

Scandinavian media have speculated recently over whether SAS would file for bankruptcy, which the company has denied.

The group said in Tuesday’s statement that it had “liquid funds equivalent of 2.4 billion kronor” and available credit facilities worth 4.7 billion kronor.

“The company is currently finalizing a comprehensive plan to fundamentally address its cost on a long-term basis, to increase cost flexibility, reduce complexity and also reduce for the effect of the potential equity write down in 2013 due to pension accounting changes,” it said.

“A board decision on the plan is expected to be made and subsequently communicated within the near future.”

SAS has posted four full-year losses in a row between 2008 and 2011, and incurred a first-half loss of 409 million kronor in the first half of this year.

AFP/The Local/og

Follow The Local on Twitter

Member comments

Become a Member to leave a comment.Or login here.