SAS loss deepens as lockdowns choke air travel

Agence France-Presse
SAS loss deepens as lockdowns choke air travel
Scandinavian airline SAS reports a net loss of 3.47 billion kroner (328 million euros, $362 million) in the 2nd quarter of its financial year

STOCKHOLM, Sweden – Scandinavian airline SAS said on Thursday, May 28, that its quarterly loss deepened as air travel was devastated by coronavirus lockdowns.

The carrier, which has practically stopped operating, reported a net loss of 3.47 billion kroner (328 million euros, $362 million) in the 3 months to April, the 2nd quarter of its financial year.

Sales fell 47% to 5.26 billion kroner.

In April alone, passenger numbers fell by 96%, after the company announced the previous month that it would cancel most of its flights and furlough 90% of staff.

SAS shares dropped more than 7% in early trading on the Stockholm stock exchange in reaction, in an overall market that was more than 1% higher.

The airline, whose main shareholders are the Swedish and Danish states, said last month that it was laying off about 5,000 people, representing 40% of its workforce.

In early May, the company secured a state-guaranteed credit line of 3.3 billion kronor to help it navigate the impact of the new coronavirus. (READ: Ryanair contests aid to Air France, SAS before EU court)

The quarterly results come a day after SAS said it would resume flights on several domestic and international routes in June.

Most will be within and between Scandinavian countries, but flights from Copenhagen to New York, Chicago, and Amsterdam will also operate again, it said. – Rappler.com

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