Q2 2024: Growing number of passengers and strong ticket sales but currency brings headwinds

SAS concludes another busy quarter with an increased number of passengers, strong ticket sales and new milestones in our restructuring proceedings. I am also pleased to note a significant improvement in operational performance throughout the second quarter with strong regularity and punctuality figures.

FEBRUARY 2024 – APRIL 2024

• Revenue: MSEK 9,994 (8,955)
• Operating income (EBIT): MSEK -1,521 (-986)
• Income before tax (EBT): MSEK -3,070 (-1,414)
• Income before tax and items affecting comparability: MSEK -3,060 (-1,561)
• Net income for the period: MSEK -2,904 (-1,525)
• Earnings per common share: SEK -0.40 (-0.21)

NOVEMBER 2023 – APRIL 2024

• Revenue: MSEK 18,919 (16,851)
• Operating income (EBIT): MSEK -2,687 (-3,620)
• Income before tax (EBT): MSEK -4,138 (-3,863)
• Income before tax and items affecting comparability: MSEK -4,090 (-4,012)
• Net income for the period: MSEK -4,357 (-4,234)
• Earnings per common share: SEK -0.60 (-0.58)

SIGNIFICANT EVENTS DURING THE QUARTER

• On February 5, SAS filed a second amended Chapter 11 Plan and a related disclosure statement with the US court.
• On March 19, the US Court approved SAS’ Chapter 11 plan.
• On March 27, the listed parent company of the SAS Group, SAS AB, applied for company reorganization (Sw. företagsrekonstruktion) in Sweden. SAS’ operations and flight schedule will not be affected and SAS will continue to serve its customers in the ordinary course throughout this process.
• On April 29, SAS and SkyTeam signed an Alliance Adherence Agreement concluding that SAS will join SkyTeam on September 1, 2024.

SIGNIFICANT EVENTS AFTER THE QUARTER

• On May 21, SAS and Apollo signed a new 3-year agreement worth SEK 4.5 billion, meaning that SAS remains Apollo’s major charter operations partner in Scandinavia from the summer of 2025 through the summer of 2027.

OUTLOOK

• SAS intends to complete the restructuring proceedings in Sweden and in the US, and fulfill all remaining conditions for the transaction, as soon as possible. SAS aims for this to occur during the summer of 2024, but this timetable may change.
• The interim report includes financial projections on page 9.

We are now entering the summer season with over 130 destinations in more than 40 countries in Europe, North America and Asia. In May, SAS also signed a new 3-year agreement with Apollo worth SEK 4.5 billion, meaning that SAS remains Apollo’s major charter operations partner in Scandinavia from the summer of 2025 through the summer of 2027. We have started preparing for the upcoming winter season. We see an increasing number of Europeans traveling to Northern Scandinavia during the winter season and we are expanding our network with new direct routes to Tromsø, Kiruna, Rovaniemi and Scandinavian Mountains Airport Sälen-Trysil. Additionally, SAS is expanding frequencies to sunny winter destinations, to the US and to European ski destinations.

The number of passengers traveling with SAS during the first half year increased to 10.6 million, up 7.3 percent compared with the same period last year. The increase in passenger demand led to a year-on-year increase of 12 percent in our total operating revenue, which landed at SEK 18.9 billion for the first half year. Ticket sales were strong during the first half year and we had a solid operating cash flow in the business. Cost savings remain a key priority across the business and we are making progress in reaching our targeted cost savings in the SAS FORWARD plan. The operating income (EBIT) landed on SEK -2.7 billion for the first half year, an improvement of SEK 933 million compared to the same period last year. Income before tax (EBT) fell to SEK -4.1 billion, but adjusted for currency effects EBT improved with almost SEK 600 million.

SAS recently announced that we will join SkyTeam on September 1, 2024. We are very excited to now have reached this milestone in SAS’ alliance transition journey. SAS’ customers and EuroBonus members will be able to enjoy new destinations and benefits as part of the SkyTeam alliance family, marking the start of an exciting future for customers, partners and employees alike.

SAS aims to be a driving force in sustainable aviation, and we are incredibly proud that we were once again voted the most sustainable company in the aviation industry by Swedish and Danish consumers, according to the extensive brand survey Sustainable Brand Index (SBI). The SBI is Europe’s largest independent brand study that measures consumers’ perception of brands based on perceived performance in terms of the 17 UN Sustainable Development Goals.

We are making steady progress in our restructuring proceedings and in reaching our overall targets in the SAS FORWARD plan. 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.

As always, we look forward to welcoming our customers on board.

Anko van der Werff
President & CEO
Stockholm, May 30, 2024

For further information, please contact:
SAS press office, +46 8 797 29 44
Investor relations, +46 709 977 070

SAS, Scandinavia’s leading airline, with main hubs in Copenhagen, Oslo and Stockholm, flies to destinations in Europe, USA and Asia. Spurred by a Scandinavian heritage and sustainability values, SAS aims to be the driving force in sustainable aviation and in the transition toward net zero emissions. We are continuously reducing our carbon emissions through using more sustainable aviation fuel, investing in new fuel-efficient aircraft and technology innovation together with partners – thereby contributing towards the industry target of net zero CO2 emissions by 2050. In addition to flight operations, SAS offers ground handling services, technical maintenance, and air cargo services. Learn more at https://www.sasgroup.net