For many years, SAS has been burdened by a cost structure that is not competitive and prevents the company from reaching its full potential. In addition, the last two years have been the most challenging in the history of the aviation industry. Travel patterns and market conditions change and will further affect the company. SAS is more in need of a restart than ever.
SAS will implement measures to ensure long-term competitiveness. Together with the already ongoing work to develop an efficient and profitable business, the company, therefore, presents its plan: “SAS FORWARD” at the same time as the results for the first quarter of the financial year 2021/2022 were presented earlier.
Profit before tax ended at SEK -2.6 billion, which is a decrease of SEK 1.7 billion compared with the last quarter, or a decrease of SEK 0.7 billion compared with the corresponding period last year.
The number of passengers flying with SAS decreased by 15% compared with the previous quarter and the flight cabin factor reached about 56%, a decrease of 4 percentage points compared with the previous quarter. Despite this, our capacity corresponded to that for the fourth quarter. Recently, however, we have seen an increase in ticket sales, which is positive and promising for the future.
SAS FORWARD:
- Reduce annual costs by SEK 7.5 billion – SAS will take strong measures to continue reducing costs with a much more comprehensive distribution of the cost burden between all major stakeholder groups and creditors.
- Fleet, network, and product offering transformation – SAS adopts a new networking principle and adjusts its fleet and product offering to position SAS for the future and improve the customer experience.
- Digital transformation – SAS will undergo a major digital transformation that will provide an even better customer experience and at the same time financial benefits.
- Position SAS as the leader in sustainable flying – SAS invests in modern fuel-efficient aircraft, sustainable aviation fuel, new technology and sustainable products and services with incentives for changed customer behavior.
- Strengthen the operational platform – SAS will increase flexibility and efficiency and facilitate adaptation to changing demand and competition.
- Strengthen SAS’s balance sheet by reducing liabilities and raising new capital – The annual cost savings of SEK 7.5 billion within the SAS FORWARD plan to pave the way for a strengthening of SAS’s balance sheet and greatly strengthen SAS’s liquidity, to enable SAS to continue to invest in networks, employees and fuel-efficient aircraft.
At the same time, SAS communicates that more details will be presented during the month of April.
(Photo: SAS)
