SAS secures deals with two more lessors to cut aircraft costs

Crisis-hit airline SAS (SAS.ST) said on Tuesday it had reached agreements with two more lessors representing seven aircraft in its fleet to amend the terms of existing lease contracts.

The agreements come on top of deals with 10 lessors comprising 37 planes announced on Oct. 5.

Long-struggling SAS, hit by the pandemic and pressured by low-cost rivals, sought bankruptcy protection in the United States in July.

The leasing amendments put SAS “well on track” to cutting its annual aircraft lease and capital costs by at least 850 million to 1.0 billion Swedish crowns ($77.3 million-$91.0 million) under its restructuring plan, the carrier said.

Negotiations continue with certain other lessors, it said.

Shares in the company were up 6% at 1336 GMT.

($1 = 10.9939 Swedish crowns)