Scandinavian Airlines System (SAS) has entered a new era after successfully navigating through Chapter 11 bankruptcy proceedings in the United States and completing a comprehensive corporate restructuring in Sweden. Prior to this transformation, SAS was a publicly traded company listed on the stock exchanges of Copenhagen, Oslo, and Stockholm. However, following its restructuring, the airline ceased public trading on August 13th, 2024, marking a significant shift in ownership. A consortium led by Air France-KLM has now taken the reins, ushering in a new strategic direction for SAS.
One of the most notable changes resulting from this ownership transition is SAS’s departure from the Star Alliance and its integration into SkyTeam, the alliance associated with its new investors. This move signifies a strategic realignment for the airline, aligning its operations more closely with its new partners.
Alongside this alliance shift, SAS has undertaken a significant financial and operational restructuring process. This involved a successful debt restructuring, reducing its outstanding debt by $2 billion, along with a comprehensive fleet optimization plan. This optimization resulted in a leaner and more cost-efficient fleet, achieved by retiring older aircraft and streamlining the number of cockpit types. Today, SAS operates a fleet of 75 aircraft, a reduction from the 131 aircraft it operated in 2020. To further enhance its operational efficiency, the airline also leverages wet-lease agreements with SAS Connect, CityJet, and Xfly, adding an additional 69 aircraft to its operational capabilities.
The impact of these strategic changes has been positive. In its fiscal year 2024, spanning from November 2023 to July 2024, SAS successfully carried 18 million passengers, marking a 6.5% increase compared to the previous year. This growth was further solidified by record-breaking profitability in July 2024, a testament to the success of the airline’s cost reduction strategy under its ‘SAS FORWARD’ plan. This cost reduction plan has yielded substantial savings of approximately SEK 7.5 billion ($736.1 million).
The restructuring journey has undoubtedly marked a significant turning point for SAS, paving the way for a new era of growth and stability. With its new strategic direction and partnership with Air France-KLM, SAS is poised to leverage its strengths and navigate the evolving aviation landscape with renewed vigor.
