SAS has reported a fiscal first quarter loss of SEK 2.7 billion (US $258 million) or (SEK 0.37) (US $0.035) on a year-over-year increase in revenue to SEK 7.9 billion (US $751.6 million), compared to SEK 5.5 billion (US $523.5 million) for the same period last year.
On Friday (February 24, 2023), SAS reported their fiscal first quarter financial results for the period ending January 31, 2023. The carrier reported a first quarter net loss of SEK 2.7 billion (US $258 million) or (SEK 0.37/US $0.035) on a year-over-year increase in revenue to SEK 7.9 billion (US $751.6 million), up from SEK 5.5 billion (US $523.5 million) during the same period in the last financial year. At January 31, 2023, SAS had a cash balance of SEK 5.3 billion (US $504.5 million).
In Friday’s announcement, SAS’ President and CEO, Anko van der Werff, said,
“We are pleased that so many passengers are returning to SAS. Passenger demand continued the strong trend during the first quarter. SAS’ total number of passengers grew by 48 percent compared to the same period last year. Our flown load factor of 69.3 percent was at pre-pandemic levels of 69.5 percent for the first quarter in FY2020. At the same time, our currency-adjusted passenger yield increased almost 7 percent compared to the first quarter in 2022.
“Due to our normal seasonality, the winter season is slower with relatively lower passenger numbers. Economic uncertainties with increasing interest rates and cost inflation are likely to affect the travel industry going forward but the overall underlying demand for travel remains healthy and continues its strong trend. We continue to prepare for a busy summer season in 2023 with an expected increased demand and capacity to match. During the quarter, we announced that we will open 20 new routes for the summer of 2023. This means that we will have a total of more than 5,000 weekly flights to over 100 destinations this summer. We look forward to welcoming our passengers on board.
“SAS continues to make steady progress in our chapter 11 process in the U.S and in reaching our overall targets in the SAS FORWARD plan. During the quarter, we concluded our aircraft lessor negotiations having reached agreements with 15 lessors representing 59 aircraft. Through these agreements, we expect to achieve our targeted cost reductions related to annual aircraft lease and financing costs. We are engaging with different stakeholders as part of the next phase of the chapter 11 process, which includes launching an equity solicitation process to obtain the capital necessary to strengthen the balance sheet in line with the SAS FORWARD objectives and working to build consensus for a plan of reorganization.
“We are grateful to the stakeholders who are working constructively with us. We look forward to continuing that collaboration to succeed with SAS FORWARD and to becoming a competitive and financially strong airline.”
SAS filed for Chapter 11 voluntary reorganization in the U.S. on July 5, 2022, with the goal of reducing their annual cost structure of SEK 7.5 billion. The carrier currently aims to complete their court-supervised reorganization process in the U.S. during the second half of 2023. As the process continues, SAS will continue operating as normal.
SAS is the leading airline in Scandinavia, typically 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 celebrated their 25th anniversary in 2022.
Source: SAS/Cision