Scandinavian Airlines-SAS issued this statement:

The last two years have been the most challenging in the history of the aviation industry whilst the future remains unpredictable.

To meet this new reality SAS presented a long-term plan “SAS FORWARD” with 7.5 billion SEK in cost savings to secure competitiveness. The success of SAS FORWARD is relying on all stakeholders’ participation including all employee groups.

Therefore, it’s worrisome that the pilot unions after the second day of negotiations chose to walk out of the negotiation room. By doing so, they are putting the entire company at stake, including thousands of colleagues’ jobs and careers.

SAS is in a more severe situation than ever, but we owe our lenders, owners, employees, and not the least our customers – as well Danish and Swedish taxpayers – to secure a place for SAS on the future market. We can only do this by moving forward with a plan that ensures a future competitive SAS.

We have a difficult journey in front of us, but we fully believe the SAS FORWARD plan is the right way forward to give us a solid financial platform that will ensure a strong, competitive and sustainable SAS for many years to come.

SAS now offers a punch card, Travel Pass Biofuel, for corporate customers who regularly travel to the same destination and want fossil free fuel, covering their flights, included.

With Travel Pass Biofuel the customers get a discounted, prepaid punch card where 100% biofuel is always included, to reduce the environmental impact of their flights.

SAS has ambitious sustainability targets and is committed to increase the use of sustainable aviation fuels, such as biofuel, in our operations in order to lower the climate impact from traveling by air. We now welcome our customers on board the journey toward a more sustainable aviation by making it possible to buy Travel Pass Biofuel. This is perfect for customers who want to make their flying more sustainable, says Markus Ek, VP Global Sales, SAS.

SAS strives to be a leader in sustainable aviation and works hard to reduce CO2 emissions. SAS does this, for example, with modern and fuel-efficient aircraft and by using sustainable aviation fuels. SAS constantly strives to increase the supply and use of sustainable aviation fuels (SAF), such as biofuel, as these are the bridge on our journey toward net zero-emission aviation. The biofuel contributed by our customers is added to the biofuel SAS is already buying. In that way we can together make a faster progress towards a more sustainable future.

Facts about Travel Pass Biofuel
•    100% biofuel, corresponding to the full fuel use for your trips
•    A discounted alternative when traveling regularly to one destination
•    Prepaid tickets – No additional charges
•    All tickets are SAS Plus, and includes Fast Track, SAS Lounge, free seating, priority boarding, free WiFi onboard, checked-in baggage and meals onboard
•    Full flexibility with SAS Plus
•    Applies to Travel Pass prepaid, with 20, 40, 60, 100 and 200 punches – Valid for one year from the date of purchase

Facts about SAS and biofuel
•    Biofuel is a sustainable aviation fuel (SAF) as defined in ICAO CORSIA Annex 16.
•    Biofuel emits up to 80% less climate-impacting CO2 compared to fossil fuels
•    SAS makes no profit on the purchase
•    The biofuel is added to the amount of biofuel that SAS is already committed to buying
•    Regulation allows blending in up to 50 percent biofuel with traditional jet fuel, in existing aircraft

SAS and Apollo have signed an agreement on charter production for summer 2022 worth just over SEK 1 billion.

Flights will depart from around 20 locations in Sweden, Norway and Denmark and fly to around 30 Mediterranean destinations in Greece, Croatia, Cyprus, Albania, and Turkey.

Within the framework of their three-year collaboration, SAS and Apollo have signed an agreement concerning this summer’s charter flights within Scandinavia for a total of approximately 150,000 passengers.

The collaboration with Apollo is SAS’s largest agreement with a charter operator and the total contract value amounts to around SEK 3.4 billion for the first three years.

SAS continues to phase in new fuel-efficient aircraft and has now one of Europe’s most modern fleets. The charter flights will be flown using the new Airbus A320 aircraft offering the passengers a more comfortable and sustainable way of travel.

SAS strives to be a leader in sustainable aviation and works hard to reduce emissions. SAS does this, for example, with modern and fuel-efficient aircraft and by using sustainable aviation fuels and aims to reduce climate-affecting emissions by 25 percent in 2025.

Scandinavian Airlines-SAS released this plan:

For many years SAS has been burdened by an uncompetitive cost structure, that prevents the company from reaching its full potential. Furthermore, the last two years have been the most challenging in the history of the aviation industry and the future remains unpredictable. Travel patterns and market conditions are changing and will have an additional impact on the company. SAS is now, more than ever, in need of a new start.

SAS will implement measures aimed at securing long-term competitiveness. Along with the already ongoing work of developing an efficient and profitable business, the company is therefore presenting its transformation plan: “SAS FORWARD”.

First quarter of fiscal 2022 results

NOVEMBER 2021–JANUARY 2022

• Revenue: MSEK 5,545 (2,282)
• Income before tax (EBT): MSEK -2,597 (-1,915)
• Income before tax and items affecting comparability: MSEK -2,621 (-1,927)
• Net income for the period: MSEK -2,442 (-2,033)
• Earnings per common share: SEK -0.34 (-0.28)

SIGNIFICANT EVENTS DURING THE QUARTER

• SAS established a partnership with Vattenfall, Shell and LanzaTech to investigate large-scale production of synthetic aviation fuel.
• SAS Connect and SAS Link established operations in Copenhagen and recruitment has started

SIGNIFICANT EVENTS AFTER THE QUARTER

• The SEK 3,000 million credit facility secured with the main owners in 2021, was drawn
• SAS FORWARD is launched – a comprehensive plan to strengthen SAS’ future position

Earnings before tax ended at negative SEK 2.6 billion, down SEK 1.7 billion compared with last quarter, or a SEK 0.7 billion decrease year-on-year. Total operating expenses during the quarter ended at SEK 6.9 billion and total operating revenue landed at SEK 5.5 billion for the quarter. Total revenue decreased 4% compared with the fourth quarter, an improvement of approximately SEK 3.3 billion compared with last year, but still 42% below the first quarter in 2019, which was unaffected by COVID-19. The cash balance at the end of the quarter was SEK 3.4 billion.

Passengers flying with SAS decreased 15% compared to the previous quarter and the flown load factor reached approximately 56%, a decrease of 4 percentage points compared with the earlier quarter. Nevertheless, our capacity was similar to the fourth quarter. Lately on a more positive note we have seen ticket sales accelerating which is promising for times ahead.

SAS FORWARD plan is launched

The pandemic has had a fundamental impact on SAS – ranging from lockdowns, travel-restrictions to structural changes in travel patterns. Absent fundamental change, this will quickly exhaust SAS’ cash resources. Therefore, SAS will proactively adopt a full transformation of its business, including its network, fleet, labor agreements and other cost structures via a broad and comprehensive transformation plan. The plan includes leveraging the SAS brand, achieving unit cost competitiveness, rightsizing the fleet (including refocusing long-haul), and building a sustainable future. SAS FORWARD is a comprehensive business and financial transformation plan designed to place SAS on a solid financial footing.

Key elements of the plan include:

• Reducing the annual costs by SEK 7.5 billion – SAS will aggressively pursue reducing costs with a far more comprehensive burden sharing across all major stakeholder and creditor groups
• Redesigned fleet, network and product offerings – SAS is adopting new network principle and adjusting its fleet and product offerings to position SAS for the future and to enhance customer experience.
• Digital transformation –SAS will undergo a major digital transformation, delivering major improvement in customers’ experiences driving financial benefits
• Positioning SAS as the leader in sustainable aviation – SAS will invest in modern fuel-efficient aircraft, sustainable aviation fuels, emerging technologies and sustainable products and services with incentivized customer behavior change.
• Operating platform acceleration – SAS will improve flexibility and efficiency, and facilitate adapting to changed market demand and competition.
• Strengthening SAS’ balance sheet by deleveraging and raising new capital – SAS FORWARD SEK 7.5 billion annual cost reduction program paves the way for undertaking a complete revitalization of SAS’ balance sheet and to substantially strengthen SAS’ liquidity position, which will allow SAS to further invest in its network, people and continued investments in fuel-efficient aircraft

The success of the program and the ability to attract potential new capital relies on SAS fully achieving the SEK 7.5 billion annual cost take out plan which in turn depends upon SAS stakeholders’ full participation.

In order to achieve the full objectives of the SAS FORWARD plan, SAS has retained the services of Seabury Securities LLC and Skandinaviska Enskilda Banken AB as financial advisors and Weil Gotshal Manges LLP as well as Mannheimer Swartling Advokatbyrå AB as legal advisors.

We will provide an update on the progress of the SAS FORWARD plan in April.

SAS is embarking on a new journey. SAS FORWARD will secure long-term competitiveness and financial strength.

Scandinavian Airlines-SAS has suspended its weekly Oslo – Kyiv flight until at least February 27 due to a possible Russian invasion of Ukraine.

There are are still a few European airlines, including Ryanair, still flying in Ukraine airspace.

Scandinavian Airlines-SAS issued this summer schedule update:

From The Local:

“The dramatic fall came after analysts at Norwegian bank DNB updated their sell recommendation, noting that the company’s debts of 40 billion kronor ($4.35 billion) are “unsustainable” and that “restructuring” is “needed to avoid bankruptcy”.

Since the start of the pandemic the airline has lost around 80 percent of its market value.”

Read the full report:

https://www.thelocal.fr/20220216/sas-shares-plummet-after-analysts-warn-it-risks-going-bankrupt/

SAS expands its network in North America and will start direct routes to Toronto from Copenhagen and Stockholm in June 2022. SAS will operate three weekly flights from Copenhagen and four weekly flights from Stockholm with brand-new A321LR aircraft.

Toronto is the fourth largest city in North America, an international center for business and finance, a truly cosmopolitan city with a vast array of experiences for travelers, from major sports and culture events to great outdoor sceneries around the Great Lakes.

SAS direct routes to Toronto will start in June 2022, provided that SAS obtains the necessary approval from the authorities. Ticket sales will start soon.

The Toronto routes will be operated by A321LR aircraft in a three-class configuration with 157 seats; 22 seats in SAS Business, 12 seats in SAS Plus (premium economy), and 123 seats in SAS Go (economy).

In the coming summer season, SAS will fly to a total of seven destinations in the US and Canada: Boston, Chicago, Los Angeles, New York, San Francisco, Washington DC, and Toronto.

Schedules to and from Toronto:
Copenhagen-Toronto: Tuesday, Thursday, and Saturday
Toronto-Copenhagen: Monday, Wednesday, and Friday
Stockholm-Toronto: Monday, Wednesday, Friday and Sunday
Toronto-Stockholm: Tuesday, Thursday, Saturday and Sunday