SAS has attributed a SKr2 billion ($189 million) third-quarter pre-tax loss mainly to a 15-day pilot strike in July, which "severely affected" its results. The strike took place between 4 and 19 July and resulted in the cancellation of 4,000 flights. A day after the strike began, SAS and some of its subsidiaries filed for Chapter 11 bankruptcy protection in the USA. SAS reached an agreement with four of its pilot unions on 19 July, bringing the industrial action to an end. The airline's SKr1.99 billion pre-tax loss in the three months to 31 July compares with a SKr1.3 billion loss in the same period last year. Its operating loss widened to SKr1.1 billion from SKr852 million a year earlier. "To date, the financial impact of the strike is SKr1.4 billion," says SAS. Revenue more than doubled to SKr8.6 billion in the third quarter amid "healthy" demand for air travel, but was 37% below the pre-pandemic third quarter of 2019. Operating expenses also more than doubled to SKr9.7 billion. SAS says it has "made progress" with its SAS Forward restructuring plan, having identified the "vast majority" of its targeted SKr7.5 billion annual cost savings. Earlier this month, the Scandinavian airline group agreed a $700 million debtor-in-possession loan with funds managed by Apollo Global Management, as part of its US Chapter 11 process. The DIP financing is still subject to court approval. "This substantial financing commitment is an important milestone in our transformation and it gives us a strong financial position to support our operations throughout the Chapter 11 process, which is expected to take nine to 12 months in total," says SAS. Looking ahead, SAS remains "cautious, due to the prevailing uncertainties around the world". Nevertheless, the airline group is "preparing for substantial recruitments and rehirings" ahead of an expected increase in demand next summer. SAS's cash balance at the end of the third quarter was SKr6.1 billion. There was an operational cash flow outflow of SKr1 billion, compared with an inflow of SKr500 million in the third quarter of 2021.

US regional carrier Piedmont Airlines is offering jobs to pilots from ExpressJet Airlines, which recently filed for bankruptcy protection and is being liquidated, under a "distressed carrier" provision in its pilot contract. The provision was added to the contract last year. It enables Piedmont to offer pilots at carriers deemed distressed "a safe haven for employment, including longevity-based pay and bonuses", says the American Airlines regional subsidiary. Piedmont is about to start taking delivery of 15 Embraer ERJ-145 jets – the same aircraft type operated by ExpressJet until it ceased flights and filed for Chapter 11 earlier this month. "Piedmont added distressed carrier language to its pilot contract last year before anticipating the fragility of some regional carriers after the pandemic," states the carrier's director of operations Matt Kernan. "We know that ExpressJet pilots are well-trained aviators who know the Embraer 145, and we are very pleased to make this transition as easy as possible for them." Pilots transitioning from ExpressJet will be offered all of Piedmont's current new-hire bonuses, pay and credits, including a $15,000 sign-on bonus that was introduced in June as part of a new contract extension ratified by members of the Air Line Pilots Association (ALPA). Competition for crewmembers is fierce at regional carriers in the USA amid an industry-wide pilot shortage. Mesa Air Group chief executive Jonathan Ornstein said during an 8 August earnings call that the pilot shortage was impeding the group's ability to meet demand for regional flights. Kernan describes Piedmont's offer to ExpressJet pilots as "an opportunity to get these pilots significant pay and bonus increases, expedited job offers and, in the process, help Piedmont grow its fleet". This is the first time Piedmont has used the distressed-carrier provision since adding the term to its contract language.

Wizz Air is planning to launch 20 new routes from various European cities to Dammam, Jeddah and Riyadh in Saudi Arabia.
The central European budget carrier signed a memorandum of understanding with Saudi Arabia earlier this year to explore market opportunities in the kingdom, which aims to treble passenger numbers by 2030 under its Vision 2030
Wizz Air announced on 25 August that it will begin flights to Saudi Arabia from Bucharest, Budapest, Catania, Larnaca, Milan, Naples, Rome, Sofia, Tirana, Venice and Vienna. Most of the routes will launch early next year, with the exception of Milan to Jeddah, Rome to Riyadh, and Vienna to Jeddah and Riyadh, which will start in December. Jeddah will also be served from Budapest, Bucharest, Larnaca, Rome and Venice, while flights to Riyadh will also operate from Budapest, Bucharest, Catania, Larnaca, Milan, Naples, Sofia and Venice. Dammam flights will operate from Budapest, Larnaca and Tirana. Wizz Air will operate the majority of the routes twice a week. "I see the kingdom as a long-term strategic market for Wizz Air, where we will continue to innovate and carry the flag of low-cost flying for the benefit of the Saudi residents and visitors as well as the country's diversifying economy," says Wizz Air chief executive Jozsef Varadi. Ali Mohammed Rajab, vice-president economic policy and air transport at Saudi Arabia's General Authority of Civil Aviation (GACA), says the new routes provide "a welcome boost to Saudi Arabia's global connectivity", and mark "another step in Saudi Arabia's vision to create a leading aviation sector".
Wizz Air already has a presence in the Middle East through its Wizz Air Abu Dhabi unit, which is owned in conjunction with a local state-owned investment firm.