Nordic carrier SAS has recorded a loss of over SEK2 billion ($235 million), in Q3 as the firm continues to battle the impact of COVID 19. SAS, which is in talks to secure support from its main owners, the governments of Sweden and Denmark, said pre-tax losses in Q 3 were in contrast to a SEK1.49 billion a year earlier. Sales fell 81% year-on-year to SEK2.5 billion.
“Demand continues to return slowly and in line with the estimated ramp-up plan we presented in the second quarter,” Rickard Gustafson, SAS’ chief executive said.
He said that the airline expected to reach 30%-40% of prior year available seat kilometres by the end of the Q4 but did not expect overall traffic to return to pre-pandemic levels until 2022.
The airlines also said that its revised business plan was progressing, and that it has managed to defer eight Airbus A320neos and two A350-900s deliveries.
"These deferrals are important as they reduce our capital expenditures for 2021-24 and better align deliveries of new aircraft with the expected return in demand," Gustafson said.
"We are still committed to achieving a single-type fleet operation by 2023, based on new Airbus aircraft that will provide lower fuel consumption and reduced maintenance costs compared with our current fleet composition. Furthermore, we have made progress on our ambitious sustainability goals by accelerating the phase out of older and less fuel-efficient aircraft. We have also renegotiated agreements with several suppliers, including wet-lease providers. The new agreements will lead to lower costs and increased flexibility, through a higher share of variable costs going forward," he added.
SAS recorded an aircraft impairment of SEK 1 billion ($118 million) for Q3. This impairment relates to specific Airbus A330, A340, A319 and Boeing 737 jets, and has been necessitated by the negative development in aircraft valuations the firm says.