SAS has published the results for its second quarter, showing a large loss due to the recent strike and other costs.
It is no longer certain that SAS can deliver a positive result for the current financial year, even after a couple of years with reasonable profits.
The market conditions are unfavourable, and the recent pilot strike will cost SEK 650 million (€60.7 million), the airline says. About 70% of this relates to the second quarter, while the remaining part will be charged to the accounts for costs in the third quarter.
In the last quarter, from February to April, SAS suffered a loss of SEK 1.2 billion before tax, which corresponds to a drop of SEK 728 million.
The weak result must be seen in the light of the pilot conflict but was also hit by rising fuel prices and the Swedish krona, which is still weakening against US dollar.
SAS has worked out that “the net pilot cost across Scandinavia has increased by approximately 5.4% over a three-year period and includes productivity improvements that to some extent mitigate the increased compensation and other costs.”
Based on the strike and the other reasons that affected the quarterly result, SAS has chosen to make a downward adjustment for the 2018-19 financial year, though there are still no concrete figures for expectations.
Previously, SAS announced that it expected a positive result before tax for the year, but now it states that “achieving a positive result before tax will be challenging”.