STOCKHOLM (Reuters) -Airline SAS reported on Tuesday a wider loss for its November through January quarter and said it would launch a new transformation programme across its business and look to raise new capital.
The airline, which is part-owned by the governments of Sweden and Denmark, reported a fiscal first-quarter loss before tax of 2.60 billion Swedish crowns ($275.20 million) against a year-earlier 1.92 billion loss.
SAS, which like other airlines has been hard-hit by the pandemic and a collapse in air travel, said in a statement it would fully transform its business, including its network, fleet, labour agreements and other cost structures, aiming to save 7.5 billion crowns.
“(A) 7.5 billion annual cost reduction plan paves the way for undertaking a complete revitalization of SAS’ balance sheet and to substantially strengthen SAS’ liquidity position,” it said.
“The success of the plan and the ability to attract potential new capital relies on SAS fully achieving the SEK 7.5 billion annual cost take out plan which in turn depends upon SAS stakeholders’ full participation.”
($1 = 9.4478 Swedish crowns)
(Reporting by Anna Ringstrom; Editing by Simon Johnson)