Predict uglier SAS deficit after Ryanair cuts
Omicron hits the airlines’ Christmas and New Year traffic hard.
Ryanair responded on Thursday by lowering its forecasts and the low-cost giant now estimates a net loss of 250-400 million euros in the financial year, which extends to 31 March 2022.
And SAS will not escape, writes Sydbank analyst Jacob Pedersen in an analysis which, according to Nyhetsbyrån Direkt, is reproduced by Danish Marketwire.
“The assumed decline in Scandinavian traffic volumes is likely to affect the result”, it is further stated, and the current estimate for the SAS deficit of 1.4 billion Swedish kroner in 2021/22 “is too optimistic”.
Sydbank therefore reiterates its sell recommendation, a stamp the share received after a downgrade from hold in the wake of the report for the fourth quarter.
– Ryanair is smoother
At the same time, compared to Ryanair, SAS has slowed down in the pandemic. While Ryanair’s November traffic was back at 2019 levels, SAS was roughly at half.
“Ryanair has been significantly more aggressive in traffic because the company has probably been able to use its financial muscle and low cost to capture market share. At the same time, the company is smoother and more flexible when it comes to making changes in traffic “, according to Marketwire, the analysis continues.
Ryanair rises 2 percent on the Dublin Stock Exchange on Wednesday morning, while SAS eases 3-4 percent on the stock exchanges in Oslo, Stockholm and Copenhagen.