SAS: swings to full-year loss due to pandemic
(CercleFinance.com) - Scandinavian airline SAS swung to a loss in its past financial year, due to the Covid-19 pandemic, and said that it still expects "weak" cashflow this winter due to low demand.
This morning the company reported a net loss for the financial year to end-October of 9.3 billion Swedish kronor (about 900 million euros), compared with a net profit of 631 million kronor a year earlier.
Full-year revenue dropped 55% to 20.5 billion kronor, although this was in part mitigated by a 37% reduction in costs, the company said in a statement.
There were however some signs of a recovery in demand over the summer season, until the second wave of the pandemic wiped this out, SAS noted in the release.
The airline - which has finalised its recapitalisation, while cutting 5,000 jobs - said it expects weak operating cashflow in the first quarter of fiscal year 2021 due to low demand during the winter season, combined with accelerated refunds.
Even so, its shares were trading 1% higher on the Stockholm Stock Exchange on Thursday morning.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
This morning the company reported a net loss for the financial year to end-October of 9.3 billion Swedish kronor (about 900 million euros), compared with a net profit of 631 million kronor a year earlier.
Full-year revenue dropped 55% to 20.5 billion kronor, although this was in part mitigated by a 37% reduction in costs, the company said in a statement.
There were however some signs of a recovery in demand over the summer season, until the second wave of the pandemic wiped this out, SAS noted in the release.
The airline - which has finalised its recapitalisation, while cutting 5,000 jobs - said it expects weak operating cashflow in the first quarter of fiscal year 2021 due to low demand during the winter season, combined with accelerated refunds.
Even so, its shares were trading 1% higher on the Stockholm Stock Exchange on Thursday morning.
Copyright (c) 2020 CercleFinance.com. All rights reserved.