SAS på kanten av stupet? - Aviation24.be

 

SAS on the verge of bankruptcy, according to some analysts

By

 André Orban

 -

16 February 2022

Oslo Norway SAS Boeing 737

SAS crashes on the stock exchange after an analysis from the Norwegian bank DNB. According to the analysis, SAS must undergo a corporate reorganisation to avoid bankruptcy.

SAS’s share fell by 20 percent on Wednesday. The case comes after the Norwegian bank DNB lowered the value of the SAS Group stock from SEK 1.00 to SEK 0.40. A restructuring of the company is necessary to avoid bankruptcy, according to the analysis.

SAS has received more than SEK 9 billion in support from the Swedish and Danish governments and has received additional money from the Wallenberg Foundations. In total, the company has received SEK 14 billion.

“Improvements are needed, but as I see it, it is not urgent. But a company is always faced with the decision of when it is time to act. It is not good to act when standing next to the precipice. SAS may be acting now,” says Jacob Pedersen, head of equity research at Dansk Sydbank.

The background to the situation is that the reduced traffic as a result of the pandemic, in addition, variations in the exchange rate have affected the company.

Until very recently, SAS was one of the better-performing companies on the Stockholm Stock Exchange in 2022, when it rose after restrictions and entry bans were lifted. In recent days, however, there have been a number of setbacks. The company was hit by a strike among baggage handlers at Copenhagen Airport, which in turn caused a number of delays and cancelled flights.