Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

SAS cancels 1,700 flights due to pilot strike, late aircraft deliveries

Published 08/19/2022, 04:56 AM
Updated 08/19/2022, 05:00 AM
© Reuters. FILE PHOTO: Flight technicians Henrik Sorensen Storsveen and Martin Markussen prepare the last of 25 Scandinavian Airlines System (SAS) aircrafts for long-term parking, amid the coronavirus disease (COVID-19) spread, at Oslo Airport Gardermoen. NTB Scanpi

STOCKHOLM (Reuters) - Scandinavian airline SAS has suspended 1,700 flights in the coming months due partly to a two-week pilot strike in July over collective agreements and delayed aircraft deliveries.

SAS, whose biggest owners are Sweden and Denmark, grounded some 3,700 flights during the crippling strike which the airline said put the carrier's future in doubt.

SAS said on Friday 1,700 flights, roughly 4% of the total number of flights, had been cancelled in September and October. Travellers had been informed and re-booked to other flights, it said.

"It is the effects from the strike but also delayed deliveries of aircraft and some other factors," a SAS spokesperson said, adding that the company does not see lower demand.

SAS said last week it had secured bridge financing during U.S. chapter 11 bankruptcy protection proceedings through a deal with U.S. private equity firm Apollo Global Management (NYSE:APO).

© Reuters. FILE PHOTO: Flight technicians Henrik Sorensen Storsveen and Martin Markussen prepare the last of 25 Scandinavian Airlines System (SAS) aircrafts for long-term parking, amid the coronavirus disease (COVID-19) spread, at Oslo Airport Gardermoen. NTB Scanpix/Hakon Mosvold Larsen via REUTERS

The carrier, which even before the pandemic was losing money amid rising competition from low-cost carriers, filed for the protection in July, a day after the strike was launched.

The Swedish government has rejected a plea for more cash, while Denmark has said it might write off some debt and inject fresh funds if SAS found support also from new private-sector investors.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.