SAS AB (SAS.SE) stock tumbled 15.0% at one point during today's session after the Scandinavian airline failed to reach agreement with its pilots regarding wages and warned that a new pilot strike puts the future of the company at risk and will cause severe travel disturbances across Europe during the summer vacation period.
Carrier estimates that nearly 50% of all flights would be canceled, which would impact approximately 30,000 passengers per day. The company believes that protest will significantly hurt its financial condition in the short-term. A strike could cost SAS around $11.2 million-$12.6 million per day, according to Sydbank analyst Jacob Pedersen.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app"A strike at this point is devastating for SAS and puts the company’s future together with the jobs of thousands of colleagues at stake. The decision to go on strike now demonstrates reckless behavior from the pilots’ unions and a shockingly low understanding of the critical situation that SAS is in,” said SAS President and chief executive Anko van der Werff.
According to the unions, around 1,000 pilots are planning to protest. SAS is willing to resume talks in order to get its pilots back to work "as soon as possible."
SAS AB (SAS.SE) stock retested it's all-time low at 0.5750. Despite negative sentiment, buyers managed to defend this level at least for now. The price is currently testing local resistance at 0.6200. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
