In a recent development, SAS Scandinavian Airlines has been granted a 100-day extension of its Chapter 11 bankruptcy protection by the US Bankruptcy Court, presided over by Judge Michael E. Wiles.

The decision to extend bankruptcy protection has been made with the utmost consideration for the best interests of the debtors, their estates, creditors, and all relevant parties.

This extension will provide SAS with an extended timeframe to actively pursue equity investment opportunities and formulate a comprehensive restructuring plan. Notably, significant progress has been made in this endeavor.

Efforts to secure financing have yielded highly encouraging outcomes, as SAS has received multiple first-round bids in July, as reported by an official committee of unsecured creditors. The airline has engaged with numerous potential investors, with ongoing discussions aimed at achieving a favorable resolution. The deadline for final proposal submissions from prospective bidders is set for September 18th. Concurrently, SAS is diligently managing its financial position by optimizing operational costs and capitalizing on asset disposition, exemplified by the recent sale of four engineless Airbus A321s to Spectre Air Capital.

SAS's financial performance has surpassed expectations, showcasing positive indicators

. Throughout the year, the airline's load factors have demonstrated consistent improvement, reaching an impressive 86% in July. Moreover, SAS has outlined its strategic objective of returning to profitability by 2024.

Notably, in June, SAS achieved a monthly profit, marking a significant turning point from its financial performance in 2019. July witnessed a remarkable 82% year-on-year increase in passenger numbers, with 2.4 million passengers, representing the highest count since the pre-pandemic era. To augment this growth, SAS expanded its capacity for the summer season and introduced new routes, including flights to Bangkok and additional connections to Newark.

SAS President & CEO Anko van der Werff expressed optimism, stating, "The summer season continued with another busy month for SAS. 2.4 million passengers traveled with SAS in July, the highest passenger figure since before the pandemic. We are pleased to see the positive trend for passenger demand, with continued booking strength throughout the month of July."

In August 2022, SAS initially sought to secure $700 million in Debtor-in-Possession (DIP) financing in two installments to facilitate its Chapter 11 proceedings. However, due to a stronger-than-expected financial performance in the second fiscal quarter of this year, SAS has chosen not to draw down the second tranche of financing, further exemplifying its improving financial standing.

/@AviationByBma 14-9/2023