Scandinavian Airlines (SAS) recorded a 2.7bn Swedish kroner (SEK: US$ 260 million) loss between November 2022 - January 2023 period, despite a 48% year-on-year surge in passenger numbers during the quarter (Q1 2023).
Revenue came to over SEK 7.7bn for the period, with income before tax of minus SEK 2.4bn, a "slight improvement" on Q1 2022 but nearly 20% below Q1 2020.
More positively, the currency-adjusted passenger yield was up almost 7%, likely due to pricier fares, but that did not prevent earnings per share dropping to negative SEK 0.37.
In a measure likely to further push up flight ticket prices, SAS said passengers would soon be able to purchase tickets with 50% of sustainable aviation fuel as part of its efforts to be a "driving force in sustainable aviation".
All the same, the carrier said it was "pleased that so many passengers are returning" as the load factor hit the roughly 69% recorded in pre-pandemic times, despite the usual winter season slowness and "economic uncertainties" such as increasing interest rates and cost inflation.
Total operating expenses during the quarter ended at SEK 10.5bn after high fuel costs brought what SAS said were "strong headwinds".
The cash balance at the end of the quarter was SEK 5.3 billion. Operational cash flow during the quarter amounted to an outflow of SEK 1.7 billion, compared with an outflow of SEK 0.1 billion for the same period last year.
SAS said it "continues to make steady progress in our chapter 11 process in the U.S and in reaching our overall targets" in its 'SAS FORWARD' restructuring, with deals reached during Q1 2023 with 15 lessors for 59 aircraft, which SAS expects to help it cut costs ahead of its hoped-for end of the chapter 11 effort in late 2023.
"We are engaging with different stakeholders as part of the next phase of the chapter 11 process, which includes launching an equity solicitation process to obtain the capital necessary to strengthen the balance sheet in line with the SAS FORWARD objectives and working to build consensus for a plan of reorganisation," the carrier added.
"The equity solicitation process is expected to be commenced during the second quarter," said chief executive Anko van der Werff.
SAS said it expects a "busy summer season in 2023 with an expected increased demand and capacity to match" after announcements over recent weeks that it would add 20 summer routes for over 5,000 weekly flights to over 100 destinations.
Looking further ahead, SAS said it was "reviewing our longer-term projections for fiscal years 2024-2026" and came to a "preliminary assessment" that revenue for fiscal year 2026 will be higher than the projection made in September 2022 of SEK 49bn.