The airline SAS is making another billion-kronor loss. However, travelers who had their flights canceled this summer will be compensated.
CEO Anko van der Werff promises this in a TT interview.
The quarterly figures for May–July were just as bleak as analysts had predicted. For SAS, the loss was almost exactly two billion kronor, even more than the same pandemic-hit period in 2021.
The explanation for the figures is simple, however, the mid-summer air strike that affected thousands of passengers cost the airline SAS around SEK 1.4 billion. However, the costs may rise further. All passengers travelling within or from an EU country are entitled to compensation for cancelled flights or longer flight delays according to EU Regulation 261/2004.
There may be further an economic blow for SAS, but CEO Anko van der Werff now says the company has it in its calculations:
”"First of all, I would like to apologize for what happened this summer and which hit our passengers hard. Everyone who is entitled to compensation will be compensated and we are doing everything we can to handle the volume of claims we have received. We fully respect the rights of passengers," he tells TT.
However, during the last strike in 2019, the airline had a completely different view and the issue had to be decided in court. At that time, SAS considered that it was a matter of ”extraordinary circumstances”, but the European Court of Justice saw the matter differently and in May 2021, Attunda District Court ruled that SAS would pay compensation.
SAS and Anko van der Werff cannot currently say how many passengers are affected and how long it may take before compensation can be received. However, this is just one of several challenges for the company, which is currently in Chapter 11 proceedings in the US regarding financial reconstruction.
Recently, it was announced that the company had to cancel 1,700 scheduled departures in September–October as a consequence of the aftermath of the airline strike this summer as well as delayed aircraft deliveries.
”We don’t think there will be any more,” says van der Werff of the cancelled flights. We are in discussions with Airbus about compensation and this is a big issue for us. If we can’t get the planes on time, it will of course mean big costs.
How worried are you that a recession will reduce the desire to fly?
”"We saw this summer that there was more demand than capacity. We'll see what happens, we don't know what happens with the covid situation, we don't know what happens around Russia and Ukraine which affects fuel prices so we're definitely not living under easy conditions."”
Despite all the uncertainty and challenges, SAS is now preparing an expansion for the upcoming summer season in 2023. According to the CEO, this is the beginning of a changed situation for the company after a series of setbacks in recent years.
”We will be recruiting about 1,000 employees next year. Once we have completed our Chapter 11 appointment, we will be in a position that will allow us to have a healthy foundation to stand on.”
Source: TT-DI.SE
