SAS, more commonly known as Scandinavian Airlines, has revealed that it will not use the second part of a significant US 700 million debtor-in-possession or DIP loan.
A decision by the company comes following a better-than-expected development of liquidity during the winter period. A winter period that typically for Nordic carriers can be described as unforgiving, with airlines scrambling to find ways to gather cash. As a result of a better-than-expected few months, the airline has said it does not require additional liquidity.
SAS has been under fire for several years following a lack lustred financial situation. Subsequently, the airline has recently undergone a major transformational program to improve its business, liquidity and position within the industry. The end goal is to be more sustainable in an unforgiving sector.
While the airline says it doesn’t require the secondary part of the loan, it hasn’t ruled out eventually needing it. They say they’ll continue to assess the ongoing situation and may not rule out utilising it later if their liquidity position changes.
SAS has been a mainstay of the European and global aviation sectors for more than half a century; however, while its current situation is seemingly improving where it once was highlights how unforgiving the industry can be, even for well-established carriers such as SAS, which have been around for a considerable period.
SAS’ will continue to push through 2023, striving to build a better model for the future. This means the carrier also wants to ensure it can safely exit Chapter 11 by year’s end. However, given the situation’s sensitivity, this is always subject to change.