SAS remains downbeat over progress with its ambitious transformation plan, with negotiations to overhaul its cost structure failing to yield any breakthrough.
The Scandinavian operator says the ‘SAS Forward’ plan is “entirely dependent” on deleveraging the company and raising “significant amounts” of new equity.
It says it needs to the support of financial parties for debt-to-equity conversion and the capital increase.
SAS is aiming to save SKr7.5 billion ($766 million) in annual costs by fiscal 2026.
But this target can only be achieved with co-operation between the carrier’s management and its key stakeholders.
While it has underlined, in an out-of-court process, that “full burden sharing” is crucial to reaching the competitive cost structure, the negotiation process has “yielded little results”, it states.
“Much remains to be done before SAS management and the board can declare success with this programme,” it adds.
SAS, which will publish second-quarter financial results on 31 May, says it will provide more details on the transformation effort once discussions have moved further.