Scandinavian Airlines' loss deepens over fuel costs and weak Swedish krona
Scandinavian Airlines (SAS) posted a net loss of almost two billion kronor ($191 million) in its fourth quarter.
For its full financial year, which ends in October, SAS's revenue rose and it cut its net loss to 5.7 billion kronor from seven billion a year earlier.
However, in the fourth quarter alone the net loss widened to 1.9 billion kronor, compared 1.2 billion kronor a year earlier.
"Higher costs from adverse trends in currencies and fuel price cloaked improved operational and commercial performance," the airline said in its earnings report.
For the full financial year, stronger demand and higher capacity pushed up SAS's revenue 30 percent to 42 billion kronor.
In July 2022, the airline filed for bankruptcy protection, so called Chapter 11, in the United States, allowing the company to restructure its debt while continuing to operate.
It also launched a massive savings plan and said it was attempting to raise 9.5 billion kronor.
Many of the plan's measures have "been implemented but cannot be recognised in our financial results until after emergence from Chapter 11," the company said.
SAS announced in early October that a consortium – including Air France-KLM, investment funds Castlelake and Lind Invest, along with the Danish state – was ready to invest $1.175 billion in the airline.
If the deal goes ahead as planned, Castlelake will ultimately own around 32 percent of the company, the Danish state 25.8 percent, Air France-KLM 19.9 percent and Lind Invest 8.6 percent.
The Swedish state, which like the Danish state currently holds a 21.8 stake, would exit the ownership.
SAS said it hopes to obtain the green light from US courts for its restructuring plan "in early 2024".
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For its full financial year, which ends in October, SAS's revenue rose and it cut its net loss to 5.7 billion kronor from seven billion a year earlier.
However, in the fourth quarter alone the net loss widened to 1.9 billion kronor, compared 1.2 billion kronor a year earlier.
"Higher costs from adverse trends in currencies and fuel price cloaked improved operational and commercial performance," the airline said in its earnings report.
For the full financial year, stronger demand and higher capacity pushed up SAS's revenue 30 percent to 42 billion kronor.
In July 2022, the airline filed for bankruptcy protection, so called Chapter 11, in the United States, allowing the company to restructure its debt while continuing to operate.
It also launched a massive savings plan and said it was attempting to raise 9.5 billion kronor.
Many of the plan's measures have "been implemented but cannot be recognised in our financial results until after emergence from Chapter 11," the company said.
SAS announced in early October that a consortium – including Air France-KLM, investment funds Castlelake and Lind Invest, along with the Danish state – was ready to invest $1.175 billion in the airline.
If the deal goes ahead as planned, Castlelake will ultimately own around 32 percent of the company, the Danish state 25.8 percent, Air France-KLM 19.9 percent and Lind Invest 8.6 percent.
The Swedish state, which like the Danish state currently holds a 21.8 stake, would exit the ownership.
SAS said it hopes to obtain the green light from US courts for its restructuring plan "in early 2024".
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