DALLAS — SAS Scandinavian Airlines (SK) has successfully emerged from U.S. Chapter 11 bankruptcy proceedings, marking what the company's CEO, Anko van der Werff, describes as a "new era" for the airline. 

This restructuring allowed SK to reduce over US$2 billion in debt, streamline its fleet, and delist its stock, effectively nullifying the shares of its 250,000 former owners.

The airline's operational performance has improved significantly, with July seeing its highest-ever monthly profitability, aided by ongoing cost-cutting measures. Van der Werff emphasized that the company is now better positioned with a stronger balance sheet and lower costs, setting the stage for future growth.

SAS filed for bankruptcy protection in July 2022 due to years of financial struggles caused by high operational costs and low demand. The court-approved restructuring plan introduced new owners, including Air France-KLM, hedge fund Castlelake, investment manager Lind Invest, and the Danish government. 

Air France-KLM, which now holds a 19.9% stake in SK, may increase its stake in the future, potentially becoming the controlling shareholder.

Starting next month, SAS will transition its customer loyalty program to SkyTeam, an alliance led by Air France-KLM, moving away from its previous affiliation with Star Alliance. This shift will provide SK, Air France (AF), and KLM (KL) customers with expanded travel options through codeshare agreements.

SAS exits bankruptcy with a US$1.2 billion investment of US$475 million in new unlisted equity and US$725 million in secured convertible debt. On Tuesday, SK reached a wage deal with its cabin crew in Norway, ending a labour strike over pay and working conditions.