Adapting SAS to a new market reality
Cost reductions across all of SAS remain in focus to optimize our competitive capability. Total operating expenses during the quarter ended at SEK 6.2 billion and total operating revenue landed at SEK 5.8 billion. Market dynamics have changed substantially during the pandemic and affect the entire airline industry. This requires SAS to take the next steps in the development of our operating model to ensure SAS is cost efficient and competitive. We are starting operation of SAS Connect out of Copenhagen in early 2022 and are evaluating possibilities to expand SAS Connect and to open bases in Stockholm and Oslo 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 at SEK 4.3 billion, which is similar to the cash position of SEK 4.4 billion at the end of Q3. During the quarter, SAS signed a predelivery payment financing of approximately USD 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.
SAS offers the most departures and has an attractive offering for people who travel frequently to, from and within Scandinavia. SAS conducted more than 800 scheduled flights daily in FY 2018, and a total of more than 30 million passengers traveled to SAS’ 125 destinations and on charter flights in Europe, the US and Asia. Membership in Star Alliance™ offers SAS access to a far-reaching global network and smooth connections. In addition to airline operations, SAS offers ground handling services, technical maintenance and air cargo services.
SAS AB is the Parent Company of SAS and is listed on the stock exchanges in Stockholm (primary listing), Copenhagen and Oslo. The majority of the operations and assets are included in the SAS Consortium.
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 our SAS 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 with Vattenfall, Shell and Lanzatech, to investigate the production of the world’s first synthetic sustainable aviation fuel. When full production is up and running, it could provide SAS with up to 25% of its requirement for sustainable aviation fuel in the 2030s.
|CAMO SYSTEMS ENGINEER||Solna|
|HANGAR LOGISTICS DELIVERY||Stockholm-Arlanda|
|DIGITAL PRODUCT OWNER||Solna|
|DEVELOPER TO DIGITAL & IT||Solna|
|SERVICE DELIVERY MANAGEMENT AND DEVELOPMENT||Solna|
|EXPERIENCED AND SENIOR CABIN CREW||Kastrup|