Scandinavian Airlines files for bankruptcy in US

Scandinavian Airlines on Tuesday filed for bankruptcy in the United States, warning the announcement of a strike by 1,000 pilots a day earlier had put the future of the carrier at risk.

According to SAS, the strike by pilots will affect about 30,000 passengers a day.

The Chapter 11 filing will allow SAS to restructure its debts under court supervision while continuing to operate, although the labor action has grounded almost 50% its flights.

“Through this process, SAS aims to reach agreements with key stakeholders, restructure the company’s debt obligations, reconfigure its aircraft fleet, and emerge with a significant capital injection,” Scandinavian Airlines said in a statement.