Struggling airline SAS is deeper in the red

Struggling Scandinavian airline SAS fell deeper into the red last quarter. The net loss amounted to 1.9 billion Swedish krona, equivalent to 175 million euros. In the same period last year, the loss amounted to 1.2 billion kroner.

SAS announced early last month that a consortium including Air France-KLM, investment fund Castlelake and the Danish state was willing to invest $1.2 billion in the airline. If this deal goes through as planned, Air France-KLM will acquire an approximately 20 percent stake in the company.

In July last year, SAS filed for bankruptcy protection in the United States, allowing the company to restructure its debts while continuing to operate. Earlier this month, the rescue plan was approved by the New York Bankruptcy Court.

The Scandinavian company saw its losses decrease throughout the past financial year, from 7 billion kroner last year to 5.7 billion. The results were mainly affected by increased fuel costs and negative currency effects. Turnover for the full financial year increased by 30 percent to 42 billion kroner.