SAS admits warns investors it may miss full-year targets after pilot strike
The Scandinavian airline issued a warning to investors that it will find it difficult to hit its full-year targets after a recent strike by pilots.
![SAS](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/bg_traders_306299467.jpg/jcr:content/renditions/original-size.webp)
SAS has issued a warning to investors that it is unlikely to hit its full-year earnings forecast after a recent strike by pilots over pay and working conditions put a significant dent in the airline’s second quarter results.
The Scandinavian airline, which is still state-owned by Sweden and Denmark after Norway sold its entire holding in the carrier, had expected to record a strong set of annual results.
Pilot strike major blow as SAS contends with multiple headwinds
SAS, along with its European rivals, have had to contend with soaring fuel prices and intense competition between carriers to cut ticket prices.
The Scandinavian airline has also struggled to keep costs down after renewing its aging fleet of planes, with the pilots’ strike nullifying the company’s restructuring efforts over several years to help the business find stable footing.
The pilots’ strike forced SAS to cancel approximately 4,000 flights between April 26 and May 3, with around 370,000 customers being affected.
SAS share price down 6% as pilot strike takes its toll
SAS has said that the strike is estimated to cost the airline around SEK 650 million (£53.5 million), with the news helping to send its share price 6% lower on Wednesday morning.
The news prompted the airline to consider more restructuring efforts and to extend its existing programme as far as 2021.
'It will be about having to think in new ways about how we use digital solutions to automate many more tasks that we today handle manually,' SAS CEO Rickard Gustafson told Reuters.
'Operating an airline requires an extreme amount of complex planning - of maintenance, of networks, of staffing. This machinery is of course well suited for optimising with modern technology. There is still a lot to do here,' he added.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
![](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/Rebrand/Article_banners/European-central-bank-banner.jpg/jcr:content/renditions/original-size.webp)
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.