SAS has announced its emergence from Chapter 11 restructuring in the US, as well as a similar reorganization process it was undergoing simultaneously in Sweden.
The Scandinavian carrier filed for Chapter 11 protection in July 2022 after several years of financial difficulties.
The decision to file for bankruptcy protection has allowed SAS to lighten its debt load, with the restructuring of around US$2 billion in financial liabilities.
The move was also accompanied by the roll out of the SAS FORWARD plan, a comprehensive initiative to strengthen the airline not just on the financial front, but also operationally, including the implementation of a SEK 7.5 billion (US$730 million) cost reduction program.
The company’s recapitalization has also involved a change to the company’s ownership structure, with two investment firms, Castlelake and Lind Invest, becoming the airline’s main shareholders, together with the Danish state and the Air France-KLM Group.
The entry of Air France-KLM into the capital of SAS, with a non-controlling 19.9% equity stake, has also led to SAS leaving Star Alliance for rival partnership SkyTeam. This represented a rather momentous decision for SAS, as it was one of the founding members of Star Alliance.
The press release announcing the exiting from Chapter 11, released on August 28, 2024, highlighted that the airline has emerged from this period of exceptionality with stronger financial health plus rising passenger numbers. In fact, July 2024 proved to be the most profitable month in the airline’s history.
