SAS Airways reaches agreements with lessors to reduce aircraft lease

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SAS Airways reaches agreements with lessors to reduce aircraft lease

STOCKHOLM Reuters - Crisis-hit airline SAS said on Wednesday it had reached agreements with 10 of its lessors representing 36 aircraft to amend the terms of existing lease contracts.

The Swedish carrier said in a statement that the tweaked agreements were an important step in reconfiguring its fleet and achieving a plan to save 7.5 billion Swedish crowns $690 million annually by 2026.

SAS is well on track to achieve its annual cost savings of at least 850 million Swedish crowns, and 1.0 billion in reduced aircraft lease and capital costs, according to the amended lease agreements.

Long-struggling SAS, ravaged by the Pandemic and pressured by low-cost rivals, sought bankruptcy protection in the United States in July. It said reducing costs for unused leased planes was a key part of its savings plan.

It said on Wednesday it intended to continue negotiations with some of its other lessors.