“Decent figures,” says SAS CEO Anko van der Werff, after the fourth-quarter loss of SEK 945 million.
The Scandinavian airline SAS released its quarterly report for its fourth quarter on Tuesday. However, it is not to anyone’s surprise that the financial figures are not positive, even before the pandemic, SAS has struggled with various savings packages to improve its cash flow.
August 2021 – October 2021
Revenue: MSEK 5,762 (3,035)
Income before tax (EBT): MSEK -945 (-3,252)
Income before tax and items affecting comparability: MSEK -911 (-3,024)
Net income for the period: MSEK -744 (-2,566)
Earnings per common share: SEK -0.12 (-4.44)
Total revenue increased 45% compared with the third quarter, an improvement of approximately SEK 2.7 billion compared with last year, but still, 57% below the fourth quarter in 2019, which was unaffected by COVID-19.
CEO of SAS, Anko van der Werff says ” It is encouraging to note the continued positive trend from the summer, with demand and ticket sales rising. However, 2021 was one of the most challenging years in the history of the aviation industry and the future remains hard to predict, primarily due to challenges connected to the ongoing pandemic. ”
Furthermore, SAS, like other airlines, is facing an uncertain near future with the new Omikron mutation, which entails new local restrictions, which affect the free movements in Europe. As a direct result of the report, SAS’s share has fallen.
This requires SAS to take the next steps in the development of its operating model to ensure SAS is cost-efficient and competitive. They are starting the operation of SAS Connect out of Copenhagen in early 2022 and are evaluating possibilities to expand SAS Connect and to open bases in Stockholm and Oslo during the year.
Something that has led to great dissatisfaction among the employees. The Swedish trade union for cabin crew has surveyed trust in management. 89 percent of those who responded state that they have no confidence in the management and believe that several of the management should resign. Furthermore, 94 percent state that they lack confidence in the business model that the management implements.
Photo: SAS Media