SAS postpones third quarter financial report

Scandinavian Airlines, SAS, is postponing its third quarter report due to ongoing negotiations regarding its revolving credit facility, the company announced on Thursday.

SAS postpones third quarter financial report

“The finalization of SAS’s comprehensive plan to address the company’s cost structure and complete asset disposals is an essential part of these negotiations,” said the company in a statement.

According to the company, the plan is expected to be finalized within a few days.

The company made a profit of 568 million kronor ($85.2 million) in the third quarter of 2012, a figure that it was forced to publish last week after media speculation prompted a suspension of trading in SAS shares.

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

This report will now be postponed until November 12th, according to the company.

SAS has said that it intends to cut back an additional 3 billion kronor, and sell assets to the same value, but many question marks remain.

But according to the new SAS figures, traffic growth remained positive in October, although it did not keep pace with an increase in capacity. Weather conditions and short-term operational challenges also affected the growth, the company said.

However, intercontinental and certain European and domestic routes continued to grow well.

“Overall, the market demand continues to be good, but remains unpredictable due to risk in the global economy,” the company said.

SAS Group carried 2.7 million passengers in October, a figure which is up by 4.6 percent.

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SAS announces reduced loss and pins hopes on summer flights

Scandinavian airline SAS narrowed its losses in the second quarter, the company said Thursday, as it set its hopes on an easing of coronavirus restrictions this summer.

SAS announces reduced loss and pins hopes on summer flights
A SAS aircraft taking off in Paris. Photo: Charles Platiau/Reuters/Ritzau Scanpix

The earnings report came a day after the governments of Sweden and Denmark announced another round of aid to the ailing carrier.

From February to April, SAS booked a net loss of 2.43 billion Swedish kronor ($292 million, 240 million euros) — 30 percent smaller than in the second quarter last year.

The company also reported an improved operating profit “for the first time since the pandemic’s outbreak, both year-on-year and compared with the previous quarter,” pointing to its cost cutting efforts.

However, the number of passengers in the period declined by 140,000 compared to the first quarter, to 857,000.

This caused revenue to fall to 1.93 billion kronor, a 15 percent drop from the preceding quarter and 63 percent from a year earlier.

“The increase in vaccination rates provides some hope for the relaxation of restrictions, and an increase in demand ahead of the important summer season,” chief executive Karl Sandlund said in a statement.

However, the CEO also noted that “many customers are now increasingly choosing to book their tickets much closer to their travel dates, which makes it difficult to predict demand during the summer.”

SAS also said it expected claims from passengers of up to 150 million kronor after a European court ruled in March that customers should be compensated over disruptions due to a pilots’ strike in 2019.

After cutting 5,000 jobs last year — representing 40 percent of its workforce — SAS announced Wednesday an additional credit line of three billion kronor from the Danish and Swedish governments, its main shareholders, to get through the crisis.

The airline received a similar loan and a capital increase last year.

READ ALSO: Virus-stricken airline SAS secures new public loan from Denmark and Sweden