Scandinavian Airlines lost 646 million in its last fiscal year, up 8%.

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Scandinavian Airlines Systems (SAS) on Wednesday reported a net loss of 7.048 billion Swedish kronor (646 million euros) in its latest fiscal year (November-October), up 8% year-on-year.

The balance sheet was marked by factors such as high fuel prices, operational disruptions that have affected the aviation industry and the cost of the pilots’ strike last July, which amounted to about 1.4 billion (132 million euros).

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Net operating profit (ebit) recorded a negative value of 3,332 million (305 million euros), 48 % less than a year earlier.

Turnover amounted to 31,824 million (2,915 million euros), up 128 %.

In the fourth quarter (August-October), the net loss was 1,238 million (113 million euros), up 66 %.

EBIT was negative 92 million (‘8 million), an 81 % improvement.

Turnover amounted to SEK 10,651 million (EUR 976 million), up 85 %.

In February, SAS presented a plan to reduce annual costs by SEK 7.5 billion (EUR 704 million) in order to clean up its accounts and improve its liquidity.

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The Scandinavian airline, controlled by the Danish and Swedish states (with just under 22% of shares each), also wants to convert 20 billion kroner (€1.9 billion) in debt and promissory notes into equity, in addition to raising at least 9.5 billion (€903 million) in new equity.

The Danish state has committed to increase its stake and forgive debt, while the Swedish state only agrees to convert debt into equity.

SAS has filed for Chapter 11 bankruptcy in the United States, a bankruptcy filing that will allow it to reorganize, and has closed a deal with the U.S. fund Apollo in the form of a DIP (debtor-in-possession) financing of 700 million dollars (702 million euros).

The Nordic airline highlighted in its balance sheet that the savings plan continues to develop positively, although for the next fiscal year it does not yet expect profits, reported EFE.