Airline SAS Sees Large Fourth-Quarter Net Loss Over Virus Standstill

Dec. 3—STOCKHOLM — Scandinavian airline SAS on Thursday reported a large fourth-quarter net loss and sharp fall in revenue, citing the fallout from the coronavirus pandemic.

The carrier said it made a net loss of 2.57 billion kronor (303 million dollars) in the period August to October, compared to a net profit of 861 million kronor in the same period a year ago.

Revenue in the quarter plunged by 77 per cent to 3 billion kronor, compared to a year ago.

For the full-year, revenue was halved and the net loss for the fiscal year was a whopping 9.32 billion kronor. That compared to a net profit of 621 million kronor in 2019.

"Since the beginning of 2020, the coronavirus has changed the fundamentals for the aviation industry through globally imposed travel restrictions and general travel concerns among the broader population," chief executive Rickard Gustafson said in a comment.

SAS said the number of passengers it flew fell 77 per cent in the fourth quarter, and was halved for the fiscal year.

Gustafson said the completion of a recapitalization plan would help SAS be "prepared for a tough winter season and a challenging fiscal year 2021, that most likely will be loss making."

As part of the plan, its main shareholders — the Swedish and Danish governments — have increased their stakes in SAS. Each own about one fifth of the airline.

SAS said it during the quarter also repaid a three-year credit guarantee for 3.3 billion kronor it secured early in May, mainly guaranteed by the Swedish and Danish governments.

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