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SAS Cancelled 77% of Its Flights and Filed for Bankruptcy Protection in the U.S. on Tuesday, July 5, 2022 amid a pilot strike that began July 4 and is expected to affect approximately 30,000 SAS passengers per day due to the absence of 900 pilots, about half of them in Norway. 51% of SAS flights were cancelled on July 4, and so far 63% of SAS flights have already been cancelled for July 6. Passengers whose flights are cancelled will be contacted by text message. Those unable to be accommodated on alternative flights can seek a full refund of their fare. Passengers on SAS Link and SAS Connect flights aren't expected to be affected.
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SAS discussions with its pilots' unions over laid-off union members being first in line for jobs with the new SAS Link and SAS Connect subsidiaries collapsed on July 4, leading to SAS filing for bankruptcy protection in the U.S., sending shares down 12%.
SAS, whose largest owners are the Swedish and Danish governments, expects the strike to cost the airline $10 million to $13 million per day. Sydbank analysts estimate that up to half of the company's cash flow could be lost in the initial four to five weeks alone.
SAS expects to complete the bankruptcy process in nine to 12 months, and hopes to renegotiate lease terms, many of which Finance chief Erno Hilden deems “significantly above” market rates.
Bottom Line: We recommend TravelSort Clients and readers avoid new reservations on SAS, and for those holding existing reservations, we highly recommend making backup travel plans with another airline
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