SAS predicts 2011 pre-tax loss due to Spanair collapse

London
Source:
This story is sourced from Pro
See more Pro news »

SAS Group has warned that it expects to incur a pre-tax loss for full-year 2011 as a result of the collapse of Spanair, which ceased operations on 27 January.

SAS, which has a 10.9% stake in Spanair, said today that "the result before tax according to the statement of income for 2011 will be negative due to the effects from Spanair".

The collapse of Barcelona-based Spanair will result in a SKr1.7 billion ($250 million) writedown for SAS.

The Scandinavian airline group said in November that there was still the potential for it "to achieve marginally positive income before tax for full-year 2011".

However, it warned at the time that due to the "difficult economic situation in the Spanish market, the risks related to the financial exposure in Spanair have increased".

SAS Group in 2009 sold 80.1% of Spanair to a local Spanish consortium for a token sum of €1 ($1.31).