10.6 billion in less before taxes – E24

The case is being updated …

On Thursday, SAS released results for the fourth quarter of its deviant financial year, which runs from November to October.

Like the rest of international aviation, SAS is also struggling with the corona pandemic, travel restrictions, and low traffic. He has given grim figures in the accounts:

• By the end of October, the company had posted revenue for the year of SEK 20.5 billion, up from SEK 46.1 billion the previous year.
• Profit before taxes and non-recurring items ended at -8,620 million, compared to 786 million the previous year
• Profit before tax ended at -10.2 billion (-10.6 billion NOK), down from a profit of 794 million the previous year.

This is the largest deficit in modern SAS history. According to a company summary dating back to 2006, the company had never lost so much money before, even in the demanding years leading up to 2012.

– Although we are encouraged by the recent progress related to the development and distribution of covid-19 vaccines, demand remains uncertain and makes it impossible to give a financial forecast for the next financial year, says CEO Rickard Gustafson in a statement from the exchange. of values.

The CEO of SAS still believes that it will not be until 2022 that SAS and the industry will see a form of “normalized” traffic. This grim prediction helped SAS announce earlier this year that 5,000 employees had to leave the company.

– I would like to take this opportunity to express my deepest appreciation to all SAS colleagues and their willingness to fight and stand firm in this turbulent year, says Gustafson.

SAS Quarterly Report

Traffic slowed down during the fall

If you look at the fourth quarter results, they also show that the end of the financial year (August to October) was very demanding:

• Revenues ended at 3.04 billion, compared to 13.4 billion in the same period last year.
• Profit before taxes and non-recurring items closed at −3.04 billion, down from 1.23 billion
• Profit before tax ended at −3.27 billion, down from 1.10 billion

– After demand gradually improved over the summer, a growing number of covid-19 cases in September and October, unfortunately, led to intensified travel restrictions in Europe. This, in turn, led to a reduction in demand, says CEO Rickard Gustafson.

In late October, it was also announced that SAS was adjusting its capacity.

At the same time that competitor Norwegian is now struggling to survive and has filed for bankruptcy protection in Ireland, SAS this fall has been able to implement a comprehensive crisis package.

The financing package ensures the company NOK 12 billion in new liquidity and NOK 14.25 billion in capital increase. The company has also repaid a $ 3.3 billion revolving loan after it came into effect.

The rescue package consisted of issues in which Sweden, Denmark, the Wallenberg family and other owners injected fresh money, in addition to having part of the debt converted.