Airline SAS Q2 loss narrows, hopes to raise near $1 bln in new cash but main owners aloof

Scandinavian Airways (SAS) planes are pictured on the Arlanda airport, north of Stockholm, Sweden April 9, 2020. Anders Wiklund/TT Information Company/through REUTERS

STOCKHOLM, Might 31 (Reuters) – Airline SAS (SAS.ST) hopes to lift 9.5 billion Swedish crowns ($972 million) in new money, warning on Tuesday of liquidity issues if it falls quick because it posted a February-April loss that was narrower than a 12 months in the past.

The service, which is part-owned by Sweden and Denmark and which has been struggling for years, in February introduced a significant new restructuring plan that it mentioned trusted it managing to lift then-unspecified new capital.

Sweden and Denmark on the time didn’t say whether or not they would pay up once more after the airline in 2020 secured a 3 billion crown rescue deal from the 2 governments. learn extra

SAS shares had been down 9% in early commerce on Tuesday.

“Along with lowering the price construction and enhance efficiencies, SAS is in search of to transform roughly SEK 20 billion of debt and hybrid notes into widespread fairness and also will search to lift not lower than SEK 9.5 billion in new fairness capital,” SAS mentioned on Tuesday.

The Swedish and Danish governments did on Tuesday not instantly reply to requests for remark. SAS mentioned discussions with stakeholders had made “restricted progress” thus far.

“Within the occasion that the anticipated burden sharing, debt conversions, and new capital elevate usually are not accomplished as deliberate, SAS will be unable to assist its present capital construction and present liquidity ranges,” it mentioned.

SAS reported a fiscal second-quarter loss earlier than tax of 1.56 billion crowns in contrast with a year-earlier 2.33 billion loss.

The service was already struggling earlier than the coronavirus pandemic amid excessive prices and elevated competitors. The aviation trade is now struggling to recuperate from COVID and SAS has diminished its summer time programme by 4,000 of a complete of 75,000 flights.

“We’re seeing wholesome underlying demand, however uncertainty persists,” CEO Anko van der Werff mentioned in an announcement.

“Site visitors to and from Asia stays affected by remaining COVID-19 restrictions in addition to the geopolitical state of affairs.”

($1 = 9.7718 Swedish crowns)

Reporting by Anna Ringstrom; Modifying by Johan Ahlander, Simon Johnson and Kenneth Maxwell

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