Gloomy interim report from SAS

When hardly anyone buys tickets, and SAS's aircraft are forced to stand long-term on the ground instead of flying passengers, it is hardly surprising that profitability is suffering.

According to the quarterly report for the broken financial year, the Swedish-Norwegian-Danish company made a loss of SEK 3 722 million. This is just over SEK 2.5 billion worse than the same period last year when the loss stopped SEK 1,212 million.

Revenues from February to April totaled SEK 5,264 million, almost halving compared to the same months in 2019 when SAS withdrew SEK 9,871 million.

The company notes that during the quarter, most of the air traffic was forced to cancel and that work was started on reducing the future workforce by up to 5,000 full-time services.

That will hardly be enough. In parallel, the management is working to get new money from the largest owners, including the Danish and Swedish state and the financial family Wallenberg.

Regarding SAS's financial situation, CEO Rickard Gustafson tells TT that the company has succeeded well based on the disastrous conditions and actually strengthened its cash.

- But if we are to survive and create a long-term functioning business, then we must not only gain access to loans, but also restore our balance sheet. We cannot do this without the support of our main owners.

Previously, both the Swedish and Danish government have guaranteed emergency loans worth SEK 3.3 billion. According to the CEO, “intense and constructive” discussions about further supplements are ongoing.

SAS is also on the Norwegian state to receive support in the form of a credit facility.

And the company's pandemic paralysis seems to be dropping. Earlier this week, several other European companies announced that some airlines will re-open in June. From having only flown with 15 planes, SAS will then have 30 planes in traffic to and from Copenhagen, Amsterdam, New York and Chicago, among others.

Even Norwegian competitor today reported a dismal result. The loss before tax landed at SEK 3.3 billion, slightly more than SEK 1 billion compared to the same months in 2019.