Tuesday. 18.06.2024

The main shareholders of Scandinavian airline SAS, including the governments of Denmark and Sweden, on Tuesday approved new funding for the struggling carrier.

Shareholders approved the funding plan at an extraordinary general meeting, SAS said.

SAS is one of many airlines that has seen demand plunge in the wake of coronavirus measures, and does not expect demand for air travel to return to pre-Covid 19 levels until 2022. 

The plan, worth about 14 billion kronor (1.34 billion euros), includes the directed issue of shares to the main shareholders and  the issue of new shares.

SAS chief executive Rickard Gustafson said he welcomed "that we have received support for the much-needed recapitalization of SAS," Stockholm daily Dagens Nyheter reported.

The airline also planned cost savings worth 4 billion kronor.

In addition to the governments of Denmark and Sweden that currently own about 30% of SAS, the plan was also backed by among others the Knut and Alice Wallenberg Foundation, the third largest shareholder.

Scandinavian SAS main shareholders approve new recapitalization plan