SAS stock plunges after wage talks with pilots collapsed

2:54 PM July 4, 2022

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.

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"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


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