STOCKHOLM - Airline SAS on Thursday reported a smaller loss for its February-April quarter than a year ago and said COVID-19 vaccinations provided some hope for looser travel restrictions and higher demand ahead of the important summer season.
The pandemic has seen air travel collapse, plunging the industry into crisis. In late 2020, SAS, whose biggest owners are the states of Sweden and Denmark, agreed a 14 billion crown recapitalisation plan.
Its fiscal second-quarter loss before tax was 2.36 billion Swedish crowns ($284 million) against a year-earlier 3.72 billion loss. Sales tumbled to 1.93 billion crowns from 5.26 billion.
"Infection, delayed vaccinations and continued stringent travel restrictions have led to a slower than hoped for recovery," Acting Chief Executive Karl Sandlund said in a statement.
"However, SAS is ready to welcome our customers back on board as travel restrictions ease ahead of the important summer season."
SAS said that for the summer, it was opening 180 direct routes and increasing capacity on domestic routes in Scandinavia.
The company late on Wednesday said it had secured loan guarantees totalling 3 billion crowns from Sweden and Denmark as a liquidity buffer complementing ongoing activities to lower costs and strengthen liquidity.
($1 = 8.3112 Swedish crowns)
(Reporting by Anna Ringstrom, editing by Helena Soderpalm and Simon Johnson) ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74))
