SAS Q2 results showcase restructuring “steady progress”

SAS has released second quarter results for 2024, with the airline highlighting its increase in passengers alongside “steady progress” with its restructuring agreements. The airline reported revenue of 9,994 Million SEK (MSEK) ($956 million) for February to April 2024, up from 8955 MSEK ($856 million) in the same quarter last year. Operating income was still negative in this quarter, however it has improved from -3,620 MSEK (-$346 million) last year to -2,687 MSEK (-$256 million). Currency-adjusted passenger revenue rose 11%, which SAS said was a result of “higher scheduled capacity (ASK)”. The number of passengers traveling with SAS during the first half year increased to 10.6 million, up 7.3% compared with the same period last year. The higher capacity had a positive impact on revenue of 1,353 MSEK ($129 million), in comparison to the preceding year.  The higher load factor had a positive effect of 509 MSEK ($49 million), however the lower yield had a negative effect of MSEK 491 ($47 million) on passenger revenue. The net income for the period was -2,904 MSEK (-$278 million), an increase from the -1,525 MSEK (-$146 million) in the same quarter last year. Commenting on the Q2 results, SAS CEO Anko van der Werff said: “SAS concludes another busy quarter with an increased number of passengers, strong ticket sales and new milestones. “I am also pleased to note a significant improvement in operational performance throughout the second quarter with strong regularity and punctuality figures”. The same investor presentation also highlighted the behind the scenes talks regarding SAS’s Chapter 11 plan. “We are making steady progress in our restructuring proceedings and in reaching our overall targets in the SAS FORWARD plan,"" said van der Werff. “During the quarter, the US Court confirmed SAS’ Chapter 11 plan and we also filed for a company reorganization of SAS AB in Sweden. This means that we have reached a major milestone in our transformation plan. “We look forward to emerging as a competitive and financially stronger airline with a stable equity structure. We still have work to do but this marks a powerful step towards realizing SAS’ potential to remain at the forefront of the airline industry for years to come”. SAS also informed investors of its plans to join SkyTeam on September 1, 2024, and also reveals a deal with Apollo. “SAS and Apollo signed a new 3-year agreement worth SEK 4.5 billion on May 21, 2024. This means that SAS remains Apollo’s major charter operations partner in Scandinavia from the summer of 2025 through the summer of 2027”.