Scandinavian carrier SAS has turned in a full-year operating loss of SKr2.7 billion ($260 million) and net loss of SKr5.7 billion, as it enters the final stages of its restructuring programme under US Chapter 11 protection.
Revenues for the year reached SKr42 billion, as passenger numbers rose by one-third to 23.7 million, while operating expenses totalled SKr44.7 billion.
Chief executive Anko van der Werff says the company is “making steady progress” with its ‘SAS Forward’ re-organisation plan, following the $1.2 billion investment agreement by a consortium including Castlelake and Air France-KLM.
SAS is continuing to aim for US court approval of the overall Chapter 11 plan early next year, followed by implementation of a Swedish restructuring of parent company SAS AB.
For the fourth quarter – the three months to 31 October – the airline made an operating loss of SKr662 million and net loss of SKr1.9 billion.
SAS says a “significant part” of its improved operational and commercial performance has been “cloaked” by adverse effects from higher fuel prices and depreciation of the Swedish currency.
The airline says it has been focusing on cost reduction but, while cost efficiencies are “ramping up over time”, some of those implemented – including the fleet restructuring – cannot be recognised in the company’s financial results until it emerges from Chapter 11.
SAS had been producing financial projections up to fiscal year 2025-26, indicating it expected to return to pre-pandemic revenue levels and positive pre-tax earnings in fiscal 2023-24.
But it says it is “reviewing” these projections as part of preparation for completing the Chapter 11 process, and in light of the investment agreement and probable restructuring of SAS AB.
“SAS has decided to stop providing forward-looking forecasts regarding the company’s financial development for the period following the expected completion of the reorganisation process in 2024,” it states.