SAS loses six billion kroner on Spanair

January 30, 2012 - 10:23

Scandinavian Airlines' 10.9 percent stake in Spanair rendered worthless after airline files for bankruptcy

Spanair's bankruptcy rendered SAS's stake in the company worthless though SAS's services are not expected to be affected (Photo: Scanpix)

SAS has lost six billion kroner on airline Spanair after it filed for bankruptcy on Friday - 4.9 billion from its purchase and 1.4 billion from the bankruptcy.

Spanair cancelled all of its flights after the bankruptcy declaration leaving thousands of passengers stranded over the weekend.

SAS’s losses in the company are not expected to affect the service of its own flights, however, but shareholders should expect the company to post a large deficit this year.

After Spanair’s filed for bankruptcy, SAS’s management released a profit warning stating that SAS would be writing off 1.4 billion kroner on Spanair.

Most of the losses were in accounting, but SAS’s liquidity will be reduced by between 160 million and 250 million kroner.

SAS owns 10.9 percent of Spanair but their stake is now effectively worthless. The new losses come from writing off loans and debts for the Spanish airline, Sture Stølen, Head of SAS Group Investor Relations, told check-in.dk.