Scandinavian airline SAS has revealed a significant rise in its second-quarter loss on Thursday, May 30, more than doubling from the previous year, as the company continues its financial restructuring efforts.
For the February-April quarter, SAS reported a pretax loss exceeding US$287 million, compared to a loss of approximately US$132 million in the same period last year. The sharp increase in losses was attributed to operating costs outpacing revenue growth.
Despite the mounting losses, SAS remains committed to completing its financial restructuring, known as the SAS FORWARD plan, by this summer. The CEO expressed confidence that the airline would emerge from the restructuring as a “financially stronger airline with a stable equity structure.”
SAS had filed for U.S. bankruptcy protection in 2022, following years of high operational costs and dwindling customer demand, a situation further aggravated by the global health crisis.
The restructuring plan, which received approval in March this year, will result in the complete elimination of SAS’s equity, with no compensation for existing shareholders. The airline’s planned exit from bankruptcy will be supported by US$1.21 billion in funding from various sources.
