Source: SAS

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.

November 2022 – January 2023

  • Revenue: MSEK 7,896 (5,545)
  • Income before tax (EBT): MSEK -2,449 (-2,597)
  • Income before tax and items affecting comparability:  MSEK -2,451 (-2,621)
  • Net income for the period: MSEK -2,709 (-2,442)
  • Earnings per common share: SEK -0.37 (-0.34)

Significant events during the quarter

  • On January 13, SAS concluded its lessor negotiations as part of the chapter 11 process. SAS reached agreements with a total of 15 lessors, representing 59 aircraft.
  • SAS continues to work towards meeting certain conditions under the DIP term loan agreement to access the second tranche of the DIP financing as soon as possible during the second quarter of fiscal year 2023 (February–April 2023).
  • SAS currently aims to complete its court-supervised process in the US during the second half of 2023, the implementation of which is likely to entail additional legal proceedings in other jurisdictions than the US. As a result, there is no assurance that there will be any recovery for the shareholders of SAS AB. SAS expects that its operations will be unaffected by such legal proceedings and that SAS will continue to serve its customers as normal.

Outlook

  • SAS reiterates its projections for FY2023 and is reviewing its longer-term projections for fiscal years 2024-2026. See more on page 9 in the report.