SAS files for bankruptcy proceedings in the United States

file image. SAS Airbus A321 and A320neo planes at Kastrup Airport have stopped on the tarmac, after Scandinavian Airlines pilots strike in Kastrup, Denmark. July 4, 2022. TT News Agency / Johan Nilsson via Reuters

STOCKHOLM (Reuters) – The Scandinavian airline said on Tuesday that SAS has filed for bankruptcy in the United States, warning that the pilots’ strike has affected its financial position and liquidity.

The airline, in a statement, said it will continue to serve its customers throughout the operation, although the pilots’ strike that began on Monday affects its flight schedule.

The intent of the statement is to accelerate the transformation of SAS.

“To move forward with the implementation of key elements of the plan, SAS and some of its subsidiaries have voluntarily filed for Chapter 11 in the United States, a legal process of financial restructuring that took place under the oversight of a US federal court,” he said.

On Monday, wage negotiations between SAS and its pilots collapsed, leading to a strike that threatens the airline’s future and adds to travel chaos across Europe as the peak summer holiday period begins.

SAS said on Tuesday that it assessed it had sufficient liquidity to meet its short-term trading obligations.

“The strike has a negative impact on the company’s liquidity and financial position, and if it continues, this impact could become material,” he said.

(Reporting by Anna Ringström; Editing in Spanish by Benjamin Michias Valencia)

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