Income jump for SAS in June – analyst still predicts difficult outlook

In May, the airline made money for the first time in 2024, when SAS earned SEK 377 million, writes Ritzau.

Summer is high season for aviation and accounts for most of the earnings. In the period from November 2023 to and including June this year, SAS has lost just under 3.4 billion Swedish kroner.

Analyst at Danish Sydbank, Jacob Pedersen, believes the million profit in June is a step in the right direction for SAS, but more is needed to get hopes of a profit over the course of a whole year.

– SAS needs to get out of bankruptcy protection, so that new agreements with lower costs come into force. It will happen very soon, but the market is less favorable now because consumers have become more price sensitive, writes Pedersen in a comment.

Among other things, delays in flight deliveries contribute to lower flight capacity in Europe, so many expect that prices will be higher than normal in the future.

Several of SAS’s competitors have recently presented figures which, however, show that the airlines are struggling to pass on increased costs to the passengers.

Earlier in July, Ryanair presented its report for the first quarter and expects significantly lower ticket prices in July, August and September compared to the summer of last year. Norwegian has also lowered its expectations, while the future SAS owner Air France-KLM has announced new austerity measures and a halt in new hires.