SAS Reaches Milestones in the Chapter 11 Process

A Scandinavian Airlines (SAS) Airbus A321LR in the hangar.
Photo Credit: Andy Prhat/SAS
Len Varley - Assistant Editor 4 Min Read
4 Min Read

Scandinavian Airlines (SAS) has seen positive developments in its ongoing Chapter 11 restructuring process.

To this end, the Scandinavian carrier has continued to implement its comprehensive business transformation plan, SAS FORWARD.

SAS Chapter 11 Progress

In November 2023, SAS entered into a critical investment agreement with a consortium led by Castlelake, Air France-KLM, Lind Invest, and the Danish state.

This agreement secures approximately SEK 13.2 billion in funding for the reorganized SAS, paving the way for a more stable future.

The airline anticipates receiving court approval for its Chapter 11 plan in the first quarter of 2024, followed by regulatory approvals and potential company reorganization in Sweden.

Q1 2024 Results

QUARTERLY RESULTS

SAS enjoyed healthy passenger demand through the first quarter with the total number of passengers up 6.3 percent compared with the same period last year.

Year-on-year, our RPK increased 13.3 percent, while capacity increased 9.3 percent. Load factor for the quarter was 71.8 percent, up 2.6 percentage points compared with the same period last year.

The increase in passenger demand and capacity led to a year-on-year increase of 13 percent in our total operating revenue, which landed at SEK 8.9 billion for the quarter.

Earnings before tax ended at a negative SEK 1.1 billion, representing a year-on-year improvement of SEK 1.4 billion.

Cost reductions across the business remain in focus to secure our cost competitiveness, and total operating expenses for the quarter ended at SEK 10.1 billion.

Many of the cost efficiencies of the SAS FORWARD plan are ramping up over time.

The cash balance at the end of the quarter was SEK 5.3 billion. Cash flow from operating activities during the quarter amounted to an outflow of SEK 38 million.

Closeup of a Scandinavian Airlines (SAS) jet engine in flight.
Photo Credit: SAS

New Routes and Destinations

Adapting to evolving travel trends, SAS has announced several new routes and increased frequencies to popular destinations for the upcoming summer season. Passengers can look forward to:

  • Over 130 destinations in more than 40 countries: This includes nine new European destinations, such as Ibiza and Tivat, Montenegro.
  • Enhanced North American and Asian connections: Increased frequencies to popular destinations like New York and Tokyo, along with the addition of Atlanta with daily direct flights throughout the summer.
  • Expanded regional connectivity: More frequent flights between Stockholm and Skellefteå to support the region’s growing business activity.

Unique Initiatives and Strategic Partnerships

SAS continues to innovate and strengthen its position through exciting initiatives:

  • Destination Unknown: Launched in February, this unique concept invites EuroBonus members to embark on a surprise trip, with the destination revealed only upon arrival. This has generated significant interest, with over 1,000 members signing up for the chance to participate.
  • Equinor contract extension: SAS secured a three-year contract extension with Equinor for both domestic and international travel. This partnership contributes significantly to SAS’ passenger volume in Norway.
SAS Inaugurates Gothenburg-New York A321LR Service
Photo Credit: Airbus.

SAS FORWARD: Building a Competitive Future

Launched in February 2022, SAS FORWARD aims to ensure the airline’s long-term success in the global aviation industry. Key elements include:

  • Reaching agreements with key stakeholders
  • Restructuring debt obligations
  • Reconfiguring the aircraft fleet
  • Securing significant capital injection

As of February 2024, an amended SAS Chapter 11 plan has been submitted to the US court, with expected recoveries for creditors outlined and support from the Official Committee of Unsecured Creditors. SAS anticipates emerging from the restructuring process by the first half of 2024.

With a combination of financial progress, strategic partnerships, and innovative initiatives, SAS continues to work towards a strong and successful future.


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Scandinavian Airlines (SAS) has seen positive developments in its Chapter 11 restructuring process, continuing to drive its SAS FORWARD transformation plan.
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