SAS: Q2 loss due to Coronavirus, but stock takes off
(CercleFinance.com) - On Tuesday SAS announced a taxable loss for the second quarter due to the coronavirus crisis.
Even so,the Scandinavian airline's stock took off after it reported that demand was gradually improving.
This morning the carrier reported a pre-tax loss of 2.1 billion Swedish kronor at the end of the last quarter, on revenues that dived 82% to 2.4 billion Swedish kronor.
This compares to a pre-tax profit of about 1.5 billion Swedish kronor on sales of 13.4 billion Swedish kronor in Q2 2019.
SAS - partly owned by the Danish, Norwegian and Swedish States - was nevertheless encouraged by the recovery in demand resulting from the gradual lifting of travel restrictions.
In July, the airline said it flew 8,700 flights, representing the equivalent of 25% of its capacity at the same time last year, 20% higher than the ratio in April.
In a statement, SAS said it aims to return to about 30%-40% of full capacity by the end of the year.
At 11 a.m. the SAS share had really taken off - up over 9% on the Stockholm Stock Exchange, while the STOXX Europe 600 Travel & Leisure index was up 2%.
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