The government of Sweden has announced it will not give any fresh capital to struggling Scandinavian Airlines (SAS). It’s the latest step towards the Swedish government’s exit from ownership of SAS, which the Norwegian government completed several years ago.


At the end of April 2022, both governments of Denmark and Sweden held 21.8% ownership of SAS. “We will most likely not be a long-term owner of SAS,” confirmed Sweden’s minister of trade and industry Karl-Petter Thorwaldsson during a press conference.

The news will come as a blow to airline executives who must raise substantial new capital as part of a rescue plan following yet another quarter of heavy losses.

Sweden will support the restructuring plan


However, despite the Swedish government’s refusal to inject fresh capital into the airline, it will support the conversion of debt into shares, a cornerstone of the airline’s survival plan. Such a move will see the Swedish government’s 21.8% ownership share of SAS significantly diluted.

“SAS would like to express its gratitude to the Swedish state for the support we have received through the pandemic and the previous years,” stated an airline press release.​