"Demand and ticket sales are increasing, however, uncertainties continue to affect the ramp-up" 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) SIGNIFICANT EVENTS DURING THE QUARTER · During the quarter, the number of passengers increased and more tickets were sold · Operations were scaled up to meet demand while more destinations opened up ·SAS signed an agreement for the pre-delivery payment financing of aboutUSD 100 million , covering ten A320neo aircraft with deliveries into Q2 FY2023 SIGNIFICANT EVENTS AFTER THE QUARTER ·SAS established a partnership withVattenfall , Shell andLanzaTech to investigate large-scale production of synthetic sustainable aviation fuel NOVEMBER 2020-OCTOBER 2021 · Revenue: MSEK 13,958 (20,513) · Income before tax (EBT): MSEK -6,525 (-10,097) · Income before tax and items affecting comparability: MSEK -6,382 (-8,565) · Net income for the period: MSEK -6,523 (-9,232) · Earnings per common share:SEK -0.94 (-21.45) COMMENTS BY THE CEO 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. Improved quarterly results still affected by the ongoing pandemic Customer demand continued to increase through the year's last quarter and as a result, our capacity increased 43% compared with the third quarter. Passengers flying withSAS increased 73% compared to the last quarter and the flown load factor reached approximately 60%, an increase of 7 percentage points compared with the earlier quarter. Still, uncertainties remain regarding the development of the COVID-19 pandemic and the transformation ofSAS has to continue - to adapt to the new market. Earnings before tax ended at negativeSEK 0.9 billion , which is an improvement ofSEK 0.5 billion compared with last quarter, or aSEK 2.3 billion improvement year-on-year. Total revenue increased 45% compared with the third quarter, an improvement of approximatelySEK 2.7 billion compared with last year, but still 57% below the fourth quarter in 2019, which was unaffected by COVID-19. AdaptingSAS to a new market reality Cost reductions across all ofSAS remain in focus to optimize our competitive capability. Total operating expenses during the quarter ended atSEK 6.2 billion and total operating revenue landed atSEK 5.8 billion . Market dynamics have changed substantially during the pandemic and affect the entire airline industry. This requiresSAS to take the next steps in the development of our operating model to ensureSAS is cost efficient and competitive. We are starting operation ofSAS Connect out ofCopenhagen in early 2022 and are evaluating possibilities to expandSAS Connect and to open bases inStockholm andOslo during the year. We are also evaluating fleet options to handle thinner flows of passengers in our network - to ensure that we can offer competitive advantages, an attractive timetable for customers and lower the total environmental footprint. We have now had a positive operating cash flow during two consecutive quarters. The work to preserve liquidity continues and at the end of the quarter, the cash position was atSEK 4.3 billion , which is similar to the cash position ofSEK 4.4 billion at the end of Q3. During the quarter,SAS signed a predelivery payment financing of approximatelyUSD 100 million that will cover financing of ten A320neo aircraft with deliveries into Q2 2023. The credit line that was established during Q3 with the major shareholders, is still fully undrawn, and provides a solid liquidity buffer during the pandemic recovery phase, should it be needed. Developing our customer offering and re-opening routes When restrictions and demand allow, we will open more routes, and this winter we are flying more than 150 routes to 90 destinations.SAS has to remain agile to be able to quickly respond to changes in customer demand, which will be one of the success factors for airlines going forward. As a direct result of the US opening up for travelers, we have increased the number of flights to and from the US.SAS operates new, fuel-efficient A350 Airbus aircraft to the US, which have 30% lower fuel consumption compared to the aircraft they are replacing. We also continue the development of our customer offering through the determined work with digitalization and personalization. For example, by expanding ourSAS Go Light on our total network, where customers can choose competitively priced tickets and then add travel extras such as bags and seat selection.SAS is a global leader in sustainable aviation. Reducing climate-impacting carbon emissions and striving to increase the supply and use of sustainable aviation fuels (SAF) are important components of that ambition. We are therefore proud to be part of a collaboration withVattenfall , Shell andLanzatech , to investigate the production of the world's first synthetic sustainable aviation fuel. When full production is up and running, it could provideSAS with up to 25% of its requirement for sustainable aviation fuel in the 2030s. Looking ahead We remain cautious due to prevailing uncertainties, but see that underlying demand is healthy once restrictions are lifted, both for business and leisure travel. Short-term effect of recent developments needs yet to be fully analyzed, however we remain optimistic for the peak periods ahead of us. During the pandemic, we see that demand for travel has changed andSAS expects a greater number of leisure travelers and even more intense competition in the future. I am grateful for all the hard work that all my colleagues atSAS are carrying out during our transformation, to ensure our performance remains at a high level and to always take care of our customers in the best possible way. Together with dedicated colleagues, a strong brand and operational excellence, we are working our way through these challenging times. We welcome you on board our aircraft in one ofEurope's most modern fleets! Anko van der Werff, President and CEOStockholm ,November 30, 2021 This information is information thatSAS AB is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted by Louise Bergström for publication onNovember 30, 2021 at8:00 a.m. CET .
Click here for more information
© Oslo Bors ASA, source