Airline SAS gets $361 million loan guarantee from Denmark, Sweden By Reuters

<iframe src=”//rcm-na.amazon-adsystem.com/e/cm?o=1&p=22&l=ur1&category=homegarden&banner=02NMTC702K4D0VHE1SR2&f=ifr&linkID=17e0b4ac3a719000706e772761d8ae0e&t=forexz-20&tracking_id=forexz-20″ width=”250″ height=”250″ scrolling=”no” border=”0″ marginwidth=”0″ style=”border:none;” frameborder=”0″></iframe>

2/2

© Reuters. FILE PHOTO: Scandinavian Airlines (SAS) Airbus A320 planes are parked at Copenhagen airport in Kastrup, Denmark, March 15, 2020. TT News Agency/Johan Nilsson via REUTERS

2/2

STOCKHOLM (Reuters) – Sweden and Denmark said on Wednesday they had agreed to offer ailing airline SAS, in which both countries own stakes, a 3 billion Swedish crown ($361 million) loan guarantee.

The COVID-19 pandemic has seen air travel collapse, plunging the industry into crisis and leaving carriers scrambling to secure funds to weather the slump.

SAS said the credit line should be seen as a complement to other ongoing activities to cut costs and strengthen liquidity. 

“Market conditions also make it difficult to predict how demand will develop ahead of the important summer season given that customers are increasingly choosing to book their trips on short notice,” SAS said in a statement.

Sweden and Denmark will guarantee 1.5 billion crowns each, the two Nordic governments said in separate statements.

“It is still the Government’s position that SAS is important for Denmark’s accessibility, Danish jobs, companies and the Danish economy in general,” the Danish government said, adding that SAS had been hard-hit by the pandemic.

The Swedish state owns 14.8% and the Danish state owns 14.2% of SAS. The guarantee is pending European Union approval.

SAS, which is due to report second-quarter earnings on Thursday, completed a capital raising in late 2020 after a year of deep losses.

($1 = 8.3100 Swedish crowns)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


9 + 1 =