The airline SAS reports a pre-tax loss of just over SEK 3 billion in the second quarter, a sharp increase compared to the same period last year. Negative exchange rate effects had a major impact on the result.
SAS reports a loss before tax of SEK 3,070 million during the second quarter, which covers February to April. The corresponding period last year the loss amounted to SEK 1,561 million.
Revenues totaled SEK 9,994 million during the quarter, an increase from SEK 8,955 million a year earlier. The increase is attributable to increased production and increased demand.
”"SAS is summing up another quarter of high activity, where we saw increased passenger volumes, strong ticket sales and new milestones in our restructuring procedures. I am also pleased with the significant improvement in production during the second quarter," writes SAS CEO Anko van der Werff in the report's CEO's statement.
The number of passengers increased by 8.1 percent compared to the second quarter of last year and approximately 5.7 million people traveled with the company during February to April.
Operating expenses increased to SEK 11,515 million from SEK 9,941 million in the comparison period. All cost items, such as personnel costs, aviation fuel costs, aviation fees and other costs increased, mainly the latter item due to increased administrative costs and costs for technical maintenance. They write DI.
Exchange rate effects had a negative net impact of SEK 1,334 million on profit before tax during the period.
Cash flow from operating activities amounted to minus SEK 1,122 million, which was an improvement from minus SEK 2,432 million a year earlier.
SAS had cash of SEK 7,756 million at the end of April, an increase from SEK 6,160 million a year earlier.
During the quarter, a US court approved SAS's Chapter 11 plan and SAS has subsequently initiated a restructuring process in Sweden, which the CEO describes as an important milestone. According to him, the company is making steady progress in the process.
”"We look forward to exiting the process as a competitive and financially stronger airline with a stable equity structure. There is still a lot of work to do, but this is a major step forward in realizing SAS's potential to remain at the forefront of the aviation industry for many years to come," writes Anko van der Werff.
After the end of the quarter, SAS announced that the company had signed a new three-year contract with charter company Apollo worth SEK 4.5 billion.
Source: DI.SE
