SAS: Estimated earnings impact of MSEK 50-90 per day from the disruptions in air traffic
19-Apr-2010 SAS: Estimated earnings impact of MSEK 50-90 per day from the disruptions in air traffic due to the volcanic ashes.
Regulatory News:
"With safety as the number one priority, we are working closely together with other major European airlines and the aviation authorities to find a solution to resume operations. We regret the situation and the consequences for our customers and SAS does its utmost to help them in a difficult situation"
The Scandinavian airspace has been closed or partly closed as from Thursday April 15 due to the volcanic ashes from the Eyjafjallajökull volcano in Iceland. As a consequence, SAS cancelled the majority of its flights as from Thursday afternoon, April 15. Parts of the Scandinavian airspace is still closed and a majority of SAS flights are cancelled also on Monday April 19. The situation in rest of Northern Europe is similar and represents a major hit to the entire aviation industry.
SAS has estimated the negative effects on earnings to MSEK 50-90 per day, assuming that all flights are cancelled. The impact is lowest on weekends and highest on busy travel days such as Mondays and Thursdays. As a result, the total earnings impact up to and including Sunday, April 19 is estimated to approximately MSEK 220-280. The estimate includes extra reimbursements to our customers such as hotel accommodation expenses and costs for alternative transportation.
"With safety as the number one priority, we are working closely together with other major European airlines and the aviation authorities to find a solution to resume operations. We regret the situation and the consequences for our customers and SAS does its utmost to help them in a difficult situation", says Mats Jansson, CEO and President.
SAS discloses this information pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was provided for publication on April 19, 2010, at 1.15pm CET