(Bloomberg) -- Scandinavian airline SAS AB faces “significant” financial harm as a result of a pilot strike that took effect on Monday, according to analysts at Sydbank AS.

In a “worst case” the strike could cost up to half of the airline’s cashflow from operations totaling more than 8 billion kronor ($776 million), said Jacob Pedersen in a research note. The analyst maintained his sell rating on the stock. 

Given the burden of debt and costs, the carrier “is flying straight into bankruptcy,” the analyst said, also citing the impact from both fewer prepaid bookings and refunds of tickets already purchased.

Earlier today SAS Chief Executive Officer Anko van der Werff said the company was doing its utmost to secure the long-term competitiveness and financial sustainability of Scandinavia’s biggest carrier. SAS shares fell as much as 12.3% in Stockholm before trading 5.1% lower as of 4:05 p.m.

SAS Warns Its Future Is at Risk as Pilots Union Goes on Strike

©2022 Bloomberg L.P.