SAS loses six billion kroner on Spanair
Scandinavian Airlines' 10.9 percent stake in Spanair rendered worthless after airline files for bankruptcy
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.
SASÂs 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 SpanairÂs filed for bankruptcy, SASÂs 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 SASÂs 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 StÃ¸len, Head of SAS Group Investor Relations, told check-in.dk.