Airline SAS orders 18 new Airbus A330neo amid wider fleet renewal

By Simon Johnson, Tim Hepher and Gianluca Lo Nostro

STOCKHOLM/PARIS, June 30 (Reuters) - Airbus said on Tuesday SAS had ordered 18 A330neo jets - part of what the Scandinavian airline described as a fleet modernisation plan involving up to 40 European long-haul aircraft worth $10 billion, its largest ever investment.

The fleet renewal and expansion comes just two years after the airline, part-owned by Air France-KLM, came out of Chapter 11 bankruptcy following years of financial difficulties and a huge drop in traffic during the COVID-19 pandemic.

There were conflicting reports from companies involved in the mechanics of the deal, with engine maker Rolls-Royce announcing that it involved 20 new A330neo jets, which are powered by its Trent 7000 engines, plus options for another 10.

SAS said it was also bringing in an unspecified number of a predecessor model, the out-of-production A330-300 jet, to help it grow while waiting for the new upgraded models to be built.

The airline did not give a breakdown of new plane orders, future options or older leased planes but said the overall package of fleet investments was worth $10 billion.

"These investments represent the most significant modernization of the SAS fleet in decades, delivering substantial improvements in fuel efficiency, noise performance and customer experience," SAS said in a statement.

Airbus no longer issues new aircraft prices but 18 A330neos would be worth $5.7 billion at the last-published value.

Large discounts from such list prices are a standard practice when airlines ​place sizeable orders with planemakers.

The order follows SAS' deal last year for 55 Embraer regional aircraft worth around $4 billion.

YEARS OF DIFFICULTIES

SAS, founded in 1946 when the national flag carriers of Denmark, Norway and Sweden joined up, has struggled in recent years to compete with budget airlines.

Several share issues and restructuring plans failed to address underlying problems with high costs and low demand.

Chapter 11 bankruptcy allowed SAS to restructure debt of more than $2 billion, to adjust its fleet and delist its stock with the new owners taking on a more profitable business.

In 2025, SAS, whose corporate headquarters are in Sweden, booked an operating profit of 3 billion crowns ($308.5 million) on the back of higher passenger numbers and revenue. That compared to an operating loss of 2.1 billion in 2024.

Its expansion plans comes as the airline industry faces significant challenges from the conflict in the Middle East, which has driven up jet fuel prices and disrupted key air corridors.

Bloomberg reported earlier this month that SAS was nearing a deal with Airbus for widebody jets after running a contest between the European planemaker and Boeing.

SAS said its plans include a significant expansion at Copenhagen Airport, its main airport hub, towards 2030, supporting an additional 25,000 jobs and contributing 25 billion Danish crowns ($3.81 billion) to Denmark's GDP by 2030.

($1 = 9.7242 Swedish crowns)

($1 = 6.5615 Danish crowns)

(Reporting by Anna Ringstrom and Simon Johnson; Editing by Susan Fenton)