Shares in airline SAS are plummeting on the Stockholm Stock Exchange – down 20 percent. A corporate restructuring is inevitable if bankruptcy is to be avoided, according to a major bank.

The price turbulence in the airline SAS continues, today with a sharp decline. At lunch, the share is the worst performer on the Large cap list during three times the recent average trading volume. The decline of around 20 percent means that the entire year's rise has now been erased again, and the last three years, which have been largely characterized by the pandemic, have resulted in a price slaughter of 80 percent.

The background to today's fall is an analysis from the major Norwegian bank DNB, where they reiterated their sell recommendation for the stock and cut the target price from one krona to 0.40 öre, while the stock is now trading around 1.30 kronor.

According to DNB, a reconstruction of the company looks inevitable if the company is not to go bankrupt. During the pandemic, the company has received over nine billion kronor in financial support from its main owners – the Swedish and Danish states. In addition, through a recapitalization in the fall of 2020, it has received further contributions from the Wallenberg Foundations.

Several setbacks

SAS was until recently one of the better performing companies on the Stockholm Stock Exchange in 2022, rising as restrictions and travel bans were lifted. However, it has faced a series of setbacks in recent days. The company was hit by a strike among baggage handlers at Copenhagen Airport, which in turn caused a series of delays and cancellations.

In addition, it has been announced that the first quarter report will be brought forward to February 22 from the original March 1, which has been interpreted by the market as a possible significant announcement from the company.

Source: SVT.SE