Tag Archives: Scandinavian Airlines-SAS

Swedish government to assume SAS debt for equity, will not inject additional capital

SAS is getting a one-time lifeline from the Swedish government. However it will be the last injection.

SAS issued this statement:

Today’s announcement regarding the intention of the Swedish Government to support the conversion of its debt holdings into SAS equity is an important step toward the success of the transformation plan, SAS FORWARD.

The full implementation of SAS FORWARD, including the burden sharing components, will allow SAS to become a competitive player in the European airline industry, thereby attracting the necessary new equity capital to restore its liquidity, deleverage its balance sheet and invest in a new fleet of aircraft.

The Swedish Government has also announced they will not inject additional new capital. SAS wants to express its appreciation of the support that has been given from the Swedish State over the years. During the pandemic, the state support provided was an absolute necessity for the company’s survival.

Since 1946, SAS has been an important part of the Scandinavian infrastructure, connecting Sweden and Scandinavia to the world and the world to Scandinavia. This continues to be SAS’ mission for generations to come.

SAS aircraft photo gallery:

SAS sees a 380% increase in traffic in April compared with last year

Scandinavian Airlines-SAS issued this traffic report for April:

During April more than 1.5 million passengers traveled with SAS, an increase of approximately 380% compared to the same month last year. SAS’ capacity increased at the same time by 190% compared with the same period last year. In comparison with last month, the total number of passengers increased with 7% and capacity was increased by 15%. The flown load factor for April was 71%, an improvement of 41 percentage points compared to April last year.

“We continue the ramp-up and see the highest number of passengers since March 2020. Looking forward, sales and booking trends are positive for the summer period ahead. Traffic to and from Asia remains a challenge due to remaining COVID-19 restrictions as well as the geopolitical situation, that impact the recovery of far-Eastern traffic. We remain focused on building a competitive and financially strong SAS, which will be achieved through the success of the SAS FORWARD transformation plan”, says Anko van der Werff, President & CEO of SAS.

SAS scheduled traffic	Apr22	Change¹	Nov21- Apr22	Change¹
ASK (Mill.)	2,794	184.1%	13,720	160.4%
RPK (Mill.)	1,980	561.4%	8,316	439.0%
Passenger load factor	70.9%	40.4 pp	60.6%	31.3 pp
No. of passengers (000)	1,526	378.2%	6,842	268.8%

Geographical development, schedule	Apr22 vs. Apr21		Nov21- Apr22 vs. Nov20-Apr21
	RPK	ASK	RPK	ASK
Intercontinental	1,732.3%	159.9%	1,254.7%	152.6%
Europe/Intrascandinavia	386.4%	363.9%	623.1%	349.0%
Domestic	166.3%	52.6%	129.3%	38.8%

SAS charter traffic	Apr22	Change¹	Nov21- Apr22	Change¹
ASK (Mill.)	74	2,576.9%	658	1,816.1%
RPK (Mill.)	65	5,743.1%	526	3,849.5%
Load factor	87.6%	47.5 pp	79.9%	41.1 pp
No. of passengers (000)	19	6,626.3%	171	4,644.9%

SAS total traffic (scheduled and charter)	Apr22	Change¹	Nov21- Apr22	Change¹
ASK (Mill.)	2,868	190.8%	14,378	171.1%
RPK (Mill.)	2,045	580.5%	8,842	468.2%
Load factor	71.3%	40.8 pp	61.5%	32.1 pp
No. of passengers (000)	1,545	383.8%	7,013	277.3%

¹ Change compared to same period last year, p p = percentage points

Preliminary yield and PASK	Apr22	Nominal change¹	FX adjusted change
Yield, SEK	1.03	-16.5%	-18.9%
PASK, SEK	0.73	94.3%	88.9%

			Apr22
Punctuality (arrival 15 min)			75.4%
Regularity			97.9%
Change in total CO₂emissions			125.9%
Change in CO₂emissions per available seat kilometer,			-4.4%
Carbon offsetting of passenger related emissions			50.8%

Definitions:

RPK – Revenue passenger kilometers

ASK – Available seat kilometers
Load factor – RPK/ASK
Yield – Passenger revenues/RPK (scheduled)

PASK – Passenger revenues/ASK (scheduled)

Change in CO₂emissions per available seat kilometers – SAS passenger related carbon emissions divided with total available seat kilometers (incl non-revenue and EuroBonus tickets), rolling 12 months vs rolling 12 months previous year

Carbon offsetting of passenger related emissions – Share of SAS passenger related carbon emissions compensated by SAS (EuroBonus members, youth tickets and SAS’ staff travel) during the month

From fiscal year 2020 we report change in CO₂ emissions in total and per Available Seat Kilometers (ASK) to align with our overall goal to reduce our total CO₂emissions by 25% by 2025, compared to 2005.

SAS aircraft photo gallery:

SAS reports negotiations with its unions remains stalled on its Transformation (Reorganization) Plan

SAS provided this update on its transformation plan:

When Q1 results were released on February 22, SAS announced a new comprehensive business transformation plan; SAS FORWARD, which is designed to secure long-term competitiveness and improved financial strength. As outlined at that time, the success of the SAS FORWARD Plan is entirely dependent upon an ability to deleverage SAS and raise significant amounts of new equity capital. Both are directly dependent upon SAS management and its key stakeholders working together to deliver by FY2026 a full SEK 7.5 billion in annual cost reductions (inclusive of interest expense and dividends on hybrid bonds issued by SAS).

SAS management and its advisors have outlined to certain key stakeholder groups the importance of achieving the full burden sharing in an out-of-court process as a means of reaching a competitive cost structure and earning the support from financial parties for both the full debt-to-equity conversions and raising the new equity capital. Unfortunately, to date, such negotiations have yielded little results and much remains to be done before SAS management and board can declare success with this program.

A more comprehensive update on the progress of the SAS FORWARD Plan, will be published once discussions have progressed further. SAS will release its Q2 results on May 31, 2022, in accordance with its financial calendar.

SAS aircraft photo gallery:

SAS reports a 360% increase in traffic in March compared with the same month last year

SAS has issued this traffic report:

During March more than 1.4 million passengers traveled with SAS, an increase of 360% compared to the same month last year. SAS’ capacity increased at the same time by approximately 190% compared with the same period last year. In comparison with last month, the total number of passengers increased with more than 50% and capacity was increased by 30%. The flown load factor for March was 69%, an improvement of 38 percentage points compared to March last year.

“The passenger numbers this month are the highest since the pandemic hit in March 2020. The ramp-up continues and we are increasing our capacity toward the summer peak season, also on the back of improved sales trends. We have added flights and destinations to the Mediterranean as well as to North America, that will be operated with our new, fuel efficient A321LR aircraft. At the same time, the need for transformation of our company remains and we continue with the SAS FORWARD plan, to secure a competitive and financially strong SAS for the future” says Anko van der Werff, President & CEO of SAS.

SAS scheduled traffic	Mar22	Change¹	Nov21- Mar22	Change¹
ASK (Mill.)	2,359	172.9%	10,926	155.0%
RPK (Mill.)	1,597	500.8%	6,335	409.5%
Passenger load factor	67.7%	37.0pp	58.0%	29.0 pp
No. of passengers (000)	1,398	346.8%	5,316	246.1%

Geographical development, schedule	Mar22 vs. Mar21		Nov21- Mar22 vs. Nov20-Mar21
	RPK	ASK	RPK	ASK
Intercontinental	1,603.1%	125.6%	1,142.4%	150.9%
Europe/Intrascandinavia	762.9%	442.2%	604.9%	345.0%
Domestic	155.9%	57.0%	121.5%	36.1%

SAS charter traffic	Mar22	Change¹	Nov21- Mar22	Change¹
ASK (Mill.)	128	2,210.3%	585	1,749.8%
RPK (Mill.)	113	4,898.7%	461	3,677.9%
Load factor	88.3%	47.5 pp	78.9%	40.3 pp
No. of passengers (000)	42	6,982.1%	152	4,472.3%

SAS total traffic (scheduled and charter)	Mar22	Change¹	Nov21- Mar22	Change¹
ASK (Mill.)	2,487	185.8%	11,510	166.6%
RPK (Mill.)	1,710	537.9%	6,797	441.3%
Load factor	68.8%	38.0 pp	59.0%	30.0 pp
No. of passengers (000)	1,440	359.3%	5,467	255.2%

¹ Change compared to same period last year, p p = percentage points

Preliminary yield and PASK	Mar22	Nominal change¹	FX adjusted change
Yield, SEK	1.07	-16.8%	-21.9%
PASK, SEK	0.73	83.2%	71.9%

			Mar22
Punctuality (arrival 15 min)			84.4%
Regularity			98.6%
Change in total CO₂emissions			122.3%
Change in CO₂emissions per available seat kilometer,			-5.8%
Carbon offsetting of passenger related emissions			53.1%

Definitions:

RPK – Revenue passenger kilometers

ASK – Available seat kilometers
Load factor – RPK/ASK
Yield – Passenger revenues/RPK (scheduled)

PASK – Passenger revenues/ASK (scheduled)

Carbon offsetting of passenger related emissions – Share of SAS passenger related carbon emissions compensated by SAS (EuroBonus members, youth tickets and SAS’ staff travel) during the month

SAS adds more summer routes

In response to the rising demand for travels, SAS is introducing more direct routes this summer.

As the world is finally opening again and the demand for travel is rising, SAS is adding several new summer routes, flying more than 200 direct routes from Scandinavia to over 100 destinations.

In response to the increasing demand for flights to Southern Europe SAS is adding more departures to popular Mediterranean destinations and will this summer offer up to 350 weekly flights between Scandinavia and Spain.

Starting end of June, SAS will fly to 11 destinations in Italy and seven destinations in Greece. Three new routes are launched from Copenhagen to Santorini, Heraklion in Crete and Corfu. In addition, routes from Oslo and Stockholm to Tivat in Montenegro will be launched. SAS started flying from Copenhagen to Tivat last summer.

SAS is also adding a seasonal route from Stockholm to the Baltic seaside resort of Pärnu – Estonia’s “summer capital” and the second biggest tourist destination in the country after the capital Tallinn.

To further meet increasing demand for intercontinental travels, SAS is expanding its network in North America and will start direct routes to Toronto from Copenhagen and Stockholm in June, as was communicated earlier. SAS will operate three weekly flights from Copenhagen and four weekly flights from Stockholm with the brand-new A321LR aircraft. The Toronto route will enable smooth connectivity to other Canadian cities like Montreal and Vancouver.

Starting June, we’ll be flying to Toronto from Copenhagen and Stockholm, provided we get the necessary authorization. Ticket sales will start soon! We’re curious – what’s your best tips for #Toronto? 🇨🇦 pic.twitter.com/ZcEwF87JiW

— SAS – Scandinavian Airlines (@SAS) February 8, 2022

SAS appoints Erno Hildén as new CFO

SAS has appointed Erno Hildén as Executive Vice President and CFO.

Erno Hildén, comes from Finland and has held several operational leadership positions in the global airline industry. He has worked both as chief financial officer and chief operating officer for Finnair and recently he also held a position as executive vice president for privatization at Saudia Airlines.

“I am very pleased to welcome Erno Hildén to SAS. Erno’s extensive financial experience combined with aviation expertise makes him a valuable addition to SAS top management team. He will play a key role during the current transformation plan, SAS FORWARD, where we are securing a long term financially stable and competitive SAS,” says Anko van der Werff, President & CEO of SAS.

“I am proud and honored to be joining the SAS group. A strong brand with true Scandinavian roots aiming to become a global leader in sustainable aviation is a stimulating environment where I am sure I will be able to contribute. I am excited to be part of SAS FORWARD and am looking forward enabling the changes necessary to secure the long-term success of SAS”, says Erno Hildén.

Erno assumes the role at SAS in April. As previously communicated, the current CFO Magnus Örnberg will leave SAS during the spring but is remaining in his current role to ensure a seamless transition for the new CFO.

SAS comments on pilot negotiations as pilots walk out

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 launches Travel Pass Biofuel

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

Kammarkollegiet extends agreement with SAS

The Legal, Financial and Administrative Services Agency (Kammarkollegiet) has decided to extend the agreement concerning domestic flights with SAS until May 2023. The new agreement is an extension of the one that came into force in May 2021.

The procurement was carried out entirely based on environmental criteria such as the average age of the aircraft fleet, efforts being made to increase the proportion of biofuels and other sustainable fuels, as well as a commitment to the next generation of carbon-neutral aircraft powered by electricity and/or hybrid technology.

SAS offers customers an attractive timetable which connects northern and southern Sweden and a network that improves accessibility to the rest of Scandinavia and the world.

The extension to the agreement will take effect on May 1, 2022.

Top Copyright Photo: Scandinavian Airlines-SAS Airbus A350-941 SE-RSA (msn 358) ARN (Stefan Sjogren). Image: 956995.

SAS aircraft slide show:

SAS aircraft photo gallery:

SAS and Apollo sign agreement concerning summer charter flights

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.