SAS has profitable Q3 with highrst passenger number since before the pandemic

SAS has profitable Q3 with highrst passenger number since before the pandemic

Time Stamp: September 1, 2023 6:38 AM
Source Node: 2246693

In Q3 2023, SAS reported a profitable quarter, marked by the highest passenger figure since before the pandemic. Approximately 7 million passengers travelled with SAS during this period, achieving the highest quarterly passenger count since pre-pandemic times. The quarter also saw the company posting a quarterly profit for the first time since 2019, signifying a significant milestone in their ongoing transformation efforts to ensure long-term competitiveness.

Despite challenges related to air traffic control capacity issues, SAS continued to see strong ticket sales during the quarter, indicating robust underlying demand for travel. In their pursuit of financial stability, SAS initiated a competitive equity solicitation process in the US as part of their Chapter 11 proceedings. The company received substantial interest from potential investors willing to participate in the process, aiming to secure capital for their airline’s future growth and recovery.

Financially, SAS reported revenue of MSEK 13,173 for the May-July 2023 period, representing a substantial increase year-on-year. The company also improved its earnings before tax (EBT) and posted a net income for the period, marking a positive turn compared to the previous year. However, a broader perspective over November 2022 to July 2023 showed ongoing challenges, with significant losses.

In terms of operations, SAS noted a remarkable increase in passenger demand, with passenger numbers rising by 36.8 percent compared to the same quarter the previous year. They also increased capacity, leading to a higher flown load factor. Cost reduction efforts remained a focus for SAS to enhance cost competitiveness.

SAS continued to advance its SAS FORWARD transformation plan, which includes voluntary Chapter 11 proceedings in the US to restructure debts, reconfigure the fleet, and secure capital injection. They aimed to complete court approval of this process around year-end 2023.

To strengthen their offering, SAS announced new routes and destinations, including direct routes from Copenhagen to Bangkok and flights to Agadir, Morocco, marking a return to Africa for the airline.

The company celebrated its affiliation with the Star Alliance, which received accolades as the World’s Best Airline Alliance and won the Best Airline Alliance Lounge Award.

SAS also showed its commitment to sustainability by engaging in efforts to reduce CO2 emissions and promote sustainable aviation fuels. Skellefteå Municipality joined SAS’ Corporate Sustainability Program, purchasing sustainable aviation fuel for its business travel. Additionally, SAS announced plans for its first-ever commercial electric flight.

Looking ahead, SAS expressed optimism about ticket sales for the upcoming winter season and reiterated its commitment to SAS FORWARD and the Chapter 11 process. The CEO, Anko van der Werff, expressed gratitude to SAS employees for their dedication to customer service and looked forward to welcoming customers aboard SAS aircraft.

Anko van der Werff, the President and CEO of SAS, delivered these updates on September 1, 2023, underscoring the company’s progress and its commitment to achieving long-term competitiveness and sustainability in the aviation industry.

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