Welcome to the SAS Q3 2023 report presentation. For the first part of the conference call, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing star five on their telephone keypad. Now, I will hand the conference over to Klaus Landelius at Investor Relations. Please go ahead. Good morning. I'm Klaus Landelius, and I'm part of the Investor Relations team here at SAS. Today, I would like to welcome you to Scandinavian Airlines' third quarter fiscal year 2023 presentation, which will be presented to you by our President and CEO, Mr. Anko van der Werff, together with our Chief Financial Officer, Mr. Erno Hildén. Before we start, I would like to highlight that the information being given to you in this presentation today is a summary and should not be considered as advice or recommendations to investors or potential investors in relation to purchasing or selling securities. Forward-looking statements presented to you today by Anko or Erno do not guarantee future results or developments, as the actual outcome could differ materially from the forward-looking statements. For further information, please read our financial and annual reports online. With that, I'll hand over to you, Anko, to start the presentation. Thank you very much, Klaus. Ladies and gentlemen, good morning, and thank you for joining us today. My name is Anko van der Werff, and I am the President and CEO of Scandinavian Airlines. Let's flip to slide two, and let me start with a brief review of the third quarter. We've had a busy summer season. Almost 7 million passengers traveled with SAS during the third quarter, which is the highest quarterly passenger figure since before the pandemic. Our RPKs increased by 42% and capacity by 36% compared to the same period last year, which was impacted by the pilot strike. The third quarter was also an important milestone for SAS, as it was the first time since 2019 that we made a quarterly profit. Our EBT amounted to a profit of SEK 457 million for the quarter. We still have a lot of work ahead of us in our transformation and in securing our long-term competitiveness, but clearly it is a sign of first profitable quarter since 2019 that we are on the right track and that our efforts are paying off. Our ticket sales were strong throughout the third quarter, indicating a healthy underlying demand for travel, and we continue our ramp up with a year-on-year increase in capacity this winter season. We make steady progress with our transformation plan, SAS Forward, and our Chapter 11 process in the United States. During the quarter, we started a competitive and broad equity solicitation process to secure the capital that will help drive our airline forward and facilitate our emergence from the Chapter 11 process. As we are announcing today, I'm also very happy to welcome two new team members with extensive aviation experience to SAS. Ginger Hughes, who joins us as Chief Transformation Officer and who has a nearly three-decade-long career advising airlines worldwide at Seabury, where she has also guided SAS through the Chapter 11 process for over a year. And Paul Verhagen, who joins as Chief Commercial Officer and who has 25 years of executive experience in the airline and hospitality industries across the globe. It is great to welcome them both to SAS, and I look forward to continue our transformation with them on board. Moving on to passenger demand. As you can see in the chart to the right, total passenger volumes increased by 37% to almost 7 million compared to Q3 last year, which once again, was impacted by the pilot strike. We added in total 13 new routes for the summer season, and this fall, we're adding 2 new direct intercontinental routes to Bangkok, Thailand, and Agadir in Morocco. We continued to see a healthy underlying demand for travel, with strong ticket sales throughout the third quarter. Turning to traffic information, we continued to ramp up our capacity, and we improved our load factor by 3.7 percentage points year-over-year, landing at 81.5% in Q3. Our ASK was up 36% year-over-year, and our RASK was up 1.5% year-over-year. We're also growing the number of departures year-over-year, which continues throughout the winter season, as you can see in the chart to the right. I want to reiterate that the third quarter was a challenging quarter for our operations. Capacity issues for air traffic control, mainly at Copenhagen, also strikes at various airports around Europe, and of course, challenging weather, to name a few. Our operational performance during the quarter was not where we wanted it to be, and we are committed to improve. I am pleased to see a strong improvement in August, apart from Monday's meltdown in the UK. The numbers that we published, that I saw this morning, have August come in as a regularity above 99%. Now I will hand over to Erno, who will take you through the financials. Thank you, Anko, and a very good morning also on my behalf. I will cover some key areas and highlights from the financials for Q3, and as always, Anko will then come back again with an update on the progression and next steps for SAS Forward. We are obviously delighted to return to black numbers for Q3 after several loss-making quarters. ... Our financial performance is seasonally the strongest during the summer months, and this year, that seasonal pattern was further supported by the continuing strong demand trend. Our production volumes for Q3 brought us significant growth year on year, with the total capacity increasing by 36% from Q3 2022, which, as Anko pointed out, was negatively affected by the strike in July last year. However, comparing to Q3 2019, our total capacity in ASK was still some 15% below pre-pandemic levels. In Q3, our revenue performance was strong, with total traffic revenue increasing by almost 38% and slightly more than the increase in our capacity, signaling favorable development with our load factors and also quite stable yield performance. Our PLF, or passenger load factor, for Q3 saw continued improvement and landed at 81.5%, which is slightly better than the level we reached in 2019 and not far off the 2018 figures. As usual, I will share some further insights into our main revenue and cost developments with the following slides. Our total revenue increased by 54% and reached SEK 13.2 billion. Pre-pandemic in 2019, the Q3 total revenue landed at thirteen point four billion, so this year we landed less than 2% below that level. The high volatility on both currencies and jet fuel prices has continued also during Q3. The volatility of our accounting currency, the Swedish krona, against the US dollar, has been particularly strong, and the krona has also depreciated significantly against most major currencies. During Q3, the overall negative impact from currencies on our operating income was negative SEK 271 million, and on EBT level, negative SEK 202 million. However, at the same time, our currency-adjusted jet fuel costs decreased by 9%, bringing us some relief and more than compensated for the increase driven by the significant growth in our traffic. Our crews are still going through intense training programs due to continuing recruitments for the ramp-up of traffic. The high training volumes are clearly visible in our crew productivity numbers, which are still below targeted levels. Because of continuing strong demand and ongoing crew training, we have been using additional wet lease capacity in our network to meet the demand. In longer term, our main objective, naturally, is to improve on aircraft and crew utilization and operate a bigger proportion of our traffic by ourselves and with our own metal. We did not meet our targets for punctuality during Q3, and as a consequence, we also had an elevated level of irregularity costs for the period. Our operating costs developed mostly according to our expectation and totaled SEK 11.6 billion. As I mentioned, we had some tailwind from the jet fuel price, but at the same time, the currency impact is negative, and we also carry additional costs from the Chapter 11 process. Our year-to-date currency-adjusted unit cost decrease, excluding fuel, was 8% at the end of the quarter. Our operating income, or EBIT, for the third quarter was SEK 1.6 billion, and our income before taxes, or EBT, was at four hundred and fifty-seven million. Both are big improvements from Q3 2022. We are steadily on track and making progress with delivering the targeted cost savings under SAS Forward. Next, I will walk you through the main drivers and developments in the following slides, so let's jump onto the next one with our revenue bridge. As I mentioned, overall, our revenue performance during the quarter was strong. Our total capacity in ASK is increased by 36% in Q3, naturally, together with the strong demand driving more revenue. Our passenger revenue increased by almost 43% and reached SEK 10.2 billion. Adjusted for currency, the growth, growth was 39%. The growth in demand exceeded the growth in capacity in all scheduled route sectors, leading to solid improvement in passenger load factor, which exceeded pre-pandemic levels from Q3 2019, and as I mentioned, reached 81.5% for total traffic. Our traffic growth continued the strongest in intercontinental traffic, where our RPKs increased by 57% and ASK by 53%. In Europe and Inter Scandinavia traffic, and then domestic traffic, the capacity growth was 33% and 24% respectively, and the RPK growth in these sectors was at 40% and 30%, signaling the strong demand also in these markets. The biggest contribution to revenue growth came from the added scheduled capacity, increasing revenues by SEK 2.8 billion. The positive impact from improved passenger load factor was SEK 416 million. The slight decline in our yields had a negative impact of SEK 281 million on passenger revenue. Our scheduled passenger yield declined slightly, with a nominal drop of 0.5% and by 2.7% adjusted for currency. I'd like to point out that the slight yield decline is driven by increased sector length, as we have substantially increased our traffic to Southern Europe. After the improvement in PLF, the passenger unit revenue or PASK Our charter revenues increased by SEK 211 million year-on-year, and other traffic revenue by SEK 121 million, both figures adjusted for currency. Other operating revenue increased significantly from Q3 2022 levels by SEK 1.2 billion, but this is mostly due to having the negative revenue adjustment and the SEK 1.1 billion krona provision in previous years' figures because of the strike. The effect from improving load factors and the slight yield decrease led to an overall growth of total unit revenue or RASK for scheduled traffic of nominally 1.5%, but a slight decline of 0.7% adjusted for currency. The positive currency impact for Q3 in revenues was SEK 210 million, but unfortunately, the total impact for operating income was negative, with the currency impact on operating costs being negative SEK 481 million. Overall, we are satisfied with the revenue development for Q3, but as the passenger load factor indicates, we obviously also still have room for further improvement system-wide. And let's move over to the next slide, please. Here on slide number 8, we have the earnings before tax or EBT development in the quarter. Last year, our loss was at SEK 2 billion, to a large extent driven by the strike impact and as a consequence, low production levels. Adjusted for currency and the strike impact, the corresponding EBT number for comparison was negative SEK 0.8 billion. The EBT for Q3 this year was a positive of SEK 0.5 billion, and against Q3 2022, a big improvement of almost SEK 2.5 billion. Our operating expenses increased by 19% from previous Q3, so substantially less than the revenue growth. Our biggest single cost line, jet fuel, decreased nominally by 4.1%. That's some SEK 117 million to SEK 2.7 billion, and by 9% when you adjust for currency. The volume impact on fuel was an increase of SEK 1 billion, whereas the impact of jet fuel price decrease reduced the cost by SEK 1.5 billion. The cost of emission rights during period increased by SEK 124 million year-on-year, and as before, at the end of Q3, we still remain unhedged for fuel. The substantial capacity growth also meant that we had growth in our variable production costs here, excluding fuel, which increased by SEK 726 million year-over-year. Our currency-adjusted personal costs increased by SEK 231 million because of the growth in traffic. This summer, as I mentioned, we have been using more external wet lease capacity in our network compared to previous periods, and the cost impact here is shown as an increase of SEK 256 million. Also, as we continue our fleet renewal with the narrow-body aircraft, we are phasing out the Boeing 737 fleet from the SAS network by the end of the summer traffic period. Because of this, for Q3, we have booked a non-recurring cost of SEK 70 million for the phase-out impact in aircraft maintenance. The Chapter 11 related costs also increased compared to Q3 2022, consisting of increased interest expenses and administrative services costs. The net financial items were up by SEK 277 million from Q3 2023, mainly because of the DIP loan costs as interest and fees. The interest expenses increased by SEK 562 million compared to Q3 last year. Then moving over to the next slide, slide number nine, we have here the developments in our cash flow and liquidity position during Q3. With strong revenue performance, positive operating results, and strong booking trend, our operational cash flow was also significantly improved from last year. Cash flow from operations before change in working capital was positive by SEK 2.1 billion for Q3. The net, net cash flow from changes in working capital was negative, with SEK 600 million, mostly due to regular seasonality development with unearned transportation revenue or UTR, partially netted by positive impact from receivables and maintenance provisions. Our total operating cash flow for the period was positive, with SEK 1.5 billion compared to a negative number of SEK 1 billion in Q3 2022. At the end of Q3, our liquidity position was a very solid SEK 6.5 billion. For Q3, our total outflow for investing activities was around SEK 160 million. We are continuing our fleet renewal program, and during the quarter, we took delivery of one more Airbus A320neo aircraft. The 320 NEOs bring us class-leading performance in both fuel efficiency and sustainability, and we are already one of the biggest operators for the type in our region. Our fleet currently consists of 68 320 NEOs. As before, the aircraft that we received was fully funded by a very competitive sale and leaseback contract. For financing activities during the quarter, we had an outflow of half a billion krona, consisting mostly of amortization of lease liabilities, repayments of borrowing, and also the DIP financing fees. As we have announced before, we have concluded the lessor negotiation under Chapter 11, bringing us annual cost savings of at least a billion krona in aircraft lease expenses and annual cash flows. The amended lease agreements are subject to approval by the court and to the plan of reorganization in the Chapter 11 process being confirmed and becoming effective. However, we are already using the reduced lease rates in our payments, so the cash flow benefit is already with us during Q3. And then on the next slide, number 10, on the left-hand side, we have our current debt maturity profile. Here, the majority of the financial year 2024 forecasted outflow is the repayment of the DIP loan. Our plan, as we have mentioned before, is to refinance the DIP funding in the equity raise process, and our target is to raise no less than SEK 9.5 billion of new common equity to complement the targeted SEK 20 billion debt conversion or reduction. The DIP loan, as such, can be extended in line with the terms and conditions of the contract. Also included here in the maturity profile for the years 2024 and 2027, we are showing the term loans from Norway, Denmark, and Sweden. As you probably recall from our previous announcements, we have received confirmation from Sweden, Denmark, and Norway for their willingness to engage in debt-to-equity conversions for their respective loans to the company, subject to material progress being made with the SAS Forward program and the burden sharing. Also included here in the financial year 2024 maturities, we have some finance lease payments for aircraft that are to be refinanced and actually not paid out in financial year 2024. So the actual expected paid-out amounts will be substantially less than shown here on this chart. On the right-hand side of the slide, we have the scheduled aircraft deliveries for the future periods. For this year, we are still expecting to take delivery of five additional aircraft, consisting of three Airbus A320neo and also two Embraer E195 regional aircraft for SAS Link. On the hedging front, we currently have no hedges for fuel, as I mentioned, but for foreign currencies, as our policy is to hedge between 40%-80% of our exposure, at the end of the quarter, we have hedged 40% of our anticipated US dollar cash flow deficit for the next 12 months, and in terms of the Norwegian krone, which is our largest surplus currency, we are hedged with 47% for the next 12 months. I will now hand over to Anko again to take you through the progression with SAS Forward and the next steps. Thank you, Erno. Excellent. Thanks, and indeed, moving on to a brief status update on SAS Forward and our Chapter 11 process in the United States. As you know, we launched our transformation plan last year with the overall objective to take us back to competitiveness and profitability. The plan consists of the three key elements illustrated on the slide. Here, the first pillar is the reduced cost structure, where we aim to decrease the total annual cost by SEK 7.5 billion by 2026. We continue to make steady progress in reaching this target. The second pillar is the restructuring of our balance sheet, and all in all, we're looking at reducing or converting 20 billion Swedish krona of debt into equity. We have already received the intended support from Denmark, Norway, and Sweden to do so by converting their hybrids and the unsecured loans into equity, conditional to all stakeholders participating in SAS Forward. The third pillar is the aim to raise new equity of at least SEK 9.5 billion, a process that started just before the summer. And I think well documented by now, we are running a competitive and broad solicitation process to secure the best available terms and conditions for that new capital. There has been substantial interest from potential investors to participate in the process, where they can place bids to take a lead position or be paired with other investors in acquiring equity interests of the reorganized company. We expect to conclude the equity solicitation process during September, and we will announce the winning bidder after that. The process and the exact timing are dependent on the final bids we are presented with on September 18 and on the process of preparing and negotiating final agreements and documentation. Please note that the timeline for the equity solicitation process is not changed by the extended time we have been granted by the court to propose and solicit votes on a Chapter 11 plan. We aim to complete court approval of the court-supervised process in the U.S. around year-end, to be followed by any regulatory approvals and procedures required in 2024. Given the substantial debt-to-equity conversions or reductions anticipated, combined with the need for substantial new capital, we currently expect that there will only be modest recovery for general unsecured creditors and little or no recovery for subordinated unsecured creditors upon emergence from the Chapter 11 process. Further, there is currently an expectation that there will be no or very little value for existing shareholders of SAS AB at the end of our restructuring proceedings. Slide 13, I would like to mention two highlights from the quarter about the progress we are making in our work towards fossil-free aviation. In June, Skellefteå Municipality became the first municipality in Sweden to join SAS's corporate sustainability program. The partnership entails that Skellefteå will purchase sustainable aviation fuel for all its business travel flights for its employees during 2023 and 2024. We certainly look forward to welcoming more companies and municipalities to our corporate sustainability program to reduce their air travel emissions while contributing to driving the transition towards sustainable aviation. In June, we also opened seat reservations for our first-ever commercial electric flight in Sweden, Norway, and Denmark, which we expect to take place around 2028. SAS has been one of the pioneers in the airline industry since 1946, being, for instance, the first commercial airline operator to fly over the North Pole to significantly shorten flight time between continents, and we are proud to invite our passengers to the next major milestone in the future of aviation. To summarize the quarter, we are executing on our plan. We are seeing clear progress, and we continue our ramp up. Our first profitable quarter since 2019 is a clear sign that we are on the right track, and together with all our partners and stakeholders, we are building the future at SAS. Very happy to see these results for our own staff and colleagues. For us, of course, a clear sign that also their hard work is paying off, and therefore, I want to close by thanking everyone on the SAS team for their hard work, not just the last months and leading to a profitable quarter, but the last years that really have led to our first profitable quarter since 2019. It is good momentum. We still have a lot of work ahead of ourselves, but it is, of course, a good sign that we are at least now showing these profitable numbers. With that, I would like to open for questions. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Jacob Pedersen from Sydbank. Please go ahead. Hi, guys, and congrats with black numbers this quarter. I have a couple of questions. First of all, can you comment on your talks with debt holders, and also, where are you in regards to new deals with the cabin crew? That hasn't been reached for all your geographies. Yeah, Jacob, thanks. Good to be in touch, and indeed, great to see the black numbers as we have explained. No, we will not go into individual negotiations, talks that we have, right, with the stakeholders. I think you will appreciate that, as much as the question, of course, is interesting. We will not do that. On cabin crew, yeah, it is true, right? Not all groups have delivered. We have still those also discussions ongoing with everybody, of course. As you can tell, we are still ramping up also in other parts of the business where we then have those deals. Right, we do have absolutely a good agreement, for instance, in Denmark, with FPU on the cabin crew, and we're working with them constructively on that. Okay, my second question. Your guidance for this financial year indicates a deficit in the region of SEK 0.5 billion-SEK 1 billion in the last quarter of the year. Any reason for this deterioration in earnings compared to this quarter? I know that you'll probably have income from passengers lower, but still, I think it's quite a substantial reduction. Well, at the moment, and as you recall, our guidance for the year is a negative EBT level between SEK 4 billion-SEK 5 billion. As you pointed out, when you do the math on the last quarter, if there was any change for us to need the guidance, we would definitely do so. But given the very heavy volatility with the currencies, which will undoubtedly impact our bottom line results, we currently stand with the guidance we have given previously. ... Okay. Okay, then maybe my last question, a few words on your view on the competitive position emerging from Chapter 11. This is coming closer now, and it seems as we're in a market now with a very benign competitive environment, with record numbers being presented by a lot of your competitors, earnings wise. You've lost some share following the pandemic. We have Ryanair entering, we also have a lot of costs going up, but far more at your competitors than at you. Maybe some more lights on where do you see yourself when you emerge from Chapter 11 on the competitive side? Yeah. Thanks, Jacob. Yeah, so lots of elements there in your question. Let me try and tackle at least a few, a few important ones. I think the number one thing we've always said is there is, call it, a legal financial Chapter 11 process, and then there is still SAS Forward that will run for still a number of years, right? We run it until fiscal year 2026, and there is a lot still to do, right? Absolutely still not comparable summer- this summer versus, versus other summers or summers of other airlines. For the simple reason, you and I have discussed this also, that we started our restructuring late and, and therefore, when you look at where we stand right now, right? Coming out also of the strike last year, making sure that those deals get implemented, and making sure that we then get all the pilots back, train those pilots, ramp up. The ramp up for us this summer has, of course, meant that we had to factor in, for instance, more external capacity than I think any other European airline, right? Because we didn't want to give up space. That is something that you pay for, right? So again, we are profitable already in this quarter with a few heavy stones around our neck. First of all, that wet lease capacity cost, that is something that, at least for next year, we really foresee will be significantly different, and you don't have to, call it, pay someone else's margin, right? Secondly, when we look at the quarter as such, heavy... and Erno alluded to this, heavily influenced by a very negative May because of an impairment on the rates of exchange. So when you look at July, for instance, right, even forget the smaller positive of the rate of exchange impairment that we did there. July, as a whole, was really a decent month, right? So within the quarter, that was profitable, we're still carrying also a very negative May that other airlines don't have because the Swedish krona has simply depreciated- Yeah ... more than any other currency in Europe. So when you look at it, fuel in krona probably has never been higher for us right now, right? Significantly at the highest level, and yet we are profitable with higher fuel cost in krona than it's ever been, with the lowest krona that has ever been, with still wet lease capacity that we pay for, and fourth, with still a lot of Chapter Eleven costs that also will go away when we, of course, emerge. So there is a lot of step changes to the positive that we still have ahead of ourselves for the next few years. Great. Thanks, thanks so much. Thank you. The next question comes from Achal Kumar from HSBC. Please go ahead. Yeah, hi. Thanks for taking my question, and congratulations for returning to black. So first of all, I just want to understand about the competitive landscape, because as you speak, I guess, many of the airlines, including Ryanair and all, I mean, I think very loud and clear that SAS is in trouble. Norwegian is sort of shrinking or stable. We are growing rapidly so in Scandy market. So just want to understand how the competitive landscape looks like for you. And then, you know, my second question is about, you know, of course, the Q3 was quite positive in terms of strong trading environment. If you see, passenger people are ready to pay, and they're traveling a lot, you know, there's a lot of pent-up demand. But now, going forward, I guess investors are quite concerned about, you know, what is the driver for the next year? I mean, you know, and then additionally, the cost pressure, Mm-hmm ... at the moment, high inflation and all. So I guess if so the key question is whether this year is a peak year, and we see a downward trend in the profitability, given that cost pressure is there and the yield might not stay at this level. So how do you see the overall equation in the source of... These two questions, and then I have a follow-up question, please. Yeah, yeah. Achal, thank you very much. I’m gonna repeat some of my answer maybe that I left with Jacob, and maybe start there, right? So, for us, once again, I think the elements are such that we can do much better and will do automatically much better next summer because we will be, again, ramping up in our own capacity so much more, right? Coming out of a restructuring that we started late, coming out of a pilot strike last year, for which we then had to, of course, adjust and make sure that we bring those pilots back, that we train, and that we’re ready in spring and summer. It led to us having a significant portion of our capacity being insourced from others.... that will not be the case next year. Then what is an unfair comparison for us is, again, that weakness of the Swedish krona. So all of that, when we take that into consideration, we definitely see for us that the profitability is actually really been and will increase next summer, and this summer was the big performance, if you like. We also are, yeah, I think boosted by the fact that demand outlook for us, we don't see a major change, actually. We see those trends being still healthy going forward. When we look at autumn and the beginning of winter season for us, right? So call it the next four months, you definitely see that the trends that we have seen throughout spring and summer when it comes to demand are still intact. And those two things, right, 7 million people for us already over the last quarter. And with, well, I call it red stones around our neck, if you like, when I spoke to Jacob a minute ago. We do see that there is definitely still that that improvement for us. Mm-hmm. And how about the competitive landscape, if you could please discuss that a bit? So within that competitive landscape, well, first of all, right, we'll always have competition, and that is absolutely okay. I don't think that by and large, when you look at what's happened from, call it pre-COVID to now, it is drastic changes. We are still somewhat later in the game in putting our capacity back, but you also see us again for this winter season versus last winter season, we will grow, and the same thing for next summer season versus this summer season. And so we are still also putting in or putting back capacity than than we have had. I see in some airports shifts from, for instance, secondary airports into primary airports, but the competition was there in one form or another, right? I still think it is something that we can deal with. It is something, of course, that will have to make us stronger. It is the reason for why we're doing SAS Forward as a whole. Once again, that program is not finished this summer. It will also not finish up on emergence from Chapter 11. We will have a three-year program to still streamline our cost. Sorry, Anko, sorry. I mean, one thing, in terms of, in terms of competitive landscape, of course, you know, I think, especially in the domestic market, I guess, I guess Norwegian Air Shuttle wasn't that strong. But now, of course, you know, they have sort of taking the benefit of, SAS under... I mean, of course, they have sort of, kind of, they have taken benefit out of, out of this, and they have strengthened themselves. They have strengthened the balance sheet. They have just recently acquired, Widerøe, and Flyr was out of market. So, so basically, do you see, do you think that you can really get back, in the domestic market, as strong as you were before? Or you think your focus will be much more on the international side now, and less on the domestic? So how do you see that? I mean, it relates to my competitive landscape question. So if you could please discuss that also a bit, please. Yeah. No, let's start, for instance, write some data points, or the way we are trying to look at the Norwegian Widerøe intention. We don't know, right, whether that will be approved. We don't know, of course, what the plans are from Norwegian with Widerøe. It's very different fleets, it's very different assets, if you like, and doesn't immediately seem to be easy to integrate that. There is clearly in the conversations also with the regulators that we're having, there is an element where there is a short runway network in Norway, which is currently served by Widerøe, that both Norwegian and SAS step into. It is our expectation, and I think that's even shared quite broadly, I believe also by Norwegian Widerøe, that that would still be the case, right? That it won't be, that that short runway network would not be monopolized, if you like, and that both airlines can still tap into that distribution, if you like. When you look at the overall positions in Norway, I think with SAS's slot portfolio and SAS's domestic flight portfolio, we're still looking in the range of high 40s, call it almost 50%, and even if Norwegian were to take over Widerøe, if that were to be granted by the regulators. So, I don't think that there is any diminishing from us on that sense, on the Norwegian market. It is, as you know, traditionally our biggest market, and we have clear strongholds, right? Capacity, slots, but also EuroBonus. So, once again, the fact that 7 million people flew with us over the last quarter tells you that there really is a market, a space, a place for us, and that really people want to travel with us. So that really confirms our, our position in these markets. Right. Fair enough. Coming back on to the cost question, I mean, yes, I mean, it was sort of, you know, you've been predictive on achieving this SEK 7.5 billion cost cut target. But now, if you look at the recent inflation impact, I guess, Lufthansa, IAG, Air France, everybody has spoken about inflation impact and hence they have increased their cost guidance. So in that context, I mean, how confident are you that, you know, these cost targets, I mean, it might be difficult to do for you to achieve these targets. I mean, you know, given that, given that the recent inflation and, and given that probably you might face, some higher expectations from your vendors, from employees, because the inflation is high now. So, so how confident, are you? And then, of course, you know, how confident are you to, to achieve the rest next to, next to crucial baskets about, you know, sort of, the converting that to equity, SEK 20 billion conversion and, and the new equity of SEK 9.5 billion? I mean, you know, so all three we're putting together, of course, starting from the first point, how... I mean, you know, how, how confident are you really, though? Yep. No, thank you. Look, let's not beat around the bush. Inflation, of course, also hits us, right? You see, right, for all airlines, of course, that I don't know, catering costs, for instance, right? The cost of food, airport charges. I mean, there is, of course, that upward pressure. I remain absolutely confident that we will make that. We have still a lot of, not only possibilities, but very clear examples of where our cost will be lower. If you look at the last quarter, as you know, we are carrying that cost of Chapter 11 still with us, right? Sure. So that is, of course, a significant cost component. It also, these... The quarter was profitable despite the goodies, and it's a bit disrespectful, but the good news of Chapter 11 not being factored in, right? For instance, those lower lease rates, right, are still not reflected in this. We have the cash component of it, but we don't have the accounting component of it. So you're still paying SEK 1 billion a year, right, accounting-wise, on top of, right, what is actually the real scenario. So again, for us, there is definitely a step change down once we emerge. The low Swedish krona, we've spoken about it. When we look at the forecast from all the major banks around us, then that should really strengthen significantly. And then, as I said, over the last year, certainly last half year, we have dealt with a lot of wet lease capacity that we, that we pay for, and that will go away. So, yeah, for us, I really think that we can drive a much more streamlined, much more cost-effective airline and, and certainly be there next summer already, for a fairer comparison where other people stand at the moment. And that will at least offset, but more probably the inflation that we're seeing around. Right. Right. No, I got, I got your point. My last question is around, around, the ESG thing, of course, you know, so first of all, in terms of, in terms of, ETS cost, I mean, of course, you know, it will, you'll not have credits in, in FY 2027. How, how do you see that cost rising? And then, on... In terms of SAF, again, I mean, I, I, the key question is, you know, would you be able to pass on the SAF burden, to the customers? So how do you see that, cost impacting, not only SAS, but the overall industry? How do you see that, I mean, you know? Yeah, you were a bit difficult to understand on your first point. So the last one is SAF, sustainable aviation fuel. What was the other one? Was it ETS? The ETS. Yeah, exactly. Okay. All right. Now, I'll take them, I'll take them both. Yeah ... because in the end, in the end, right, they're both, of course, cost components for the green energy transition. Yeah, we've been quite outspoken that we need more of it, right? I mean, we need collectively, and I really, I think I speak on behalf of the industry here, it is something that the industry, of course, is struggling with. The supply of SAF is too low. There is not enough volume production, et cetera. So, so we do need to make sure that we get there, right? We're very dependent on one, at the moment, almost supplier, and that is something that has to come online over the next few years. Your follow-on question is about involving, let's say, our passengers in right, hey, disrespectfully maybe, but picking up part of the bill. Yeah, we're also having launched a few key commercial elements there. We're incentivizing, for instance, passengers to buy biofuel online with us as an ancillary product. And we incentivize that by, for instance, having our EuroBonus points earned on that. The second thing is we have launched early in spring biofuel fares, right? So we're really trying to make indeed passengers part of the solution and make sure the passengers have a choice to also being part of that green energy transition. I think fair to say that that is, yeah, at the beginning of a curve, right? It's not to say, absolutely not, that there is now 10%, 20%, 30% of our passengers buying those products at all, but we have to start somewhere, and I think over the next few years, they will be part of it. Okay, perfect. Thank you very much. Thank you. Thank you, Anko, and wish you good luck. Thank you. Bye. The next question comes from Hans-Jørgen Elnæs from WinAir AS. Please go ahead. Good morning, Anko and Erno, and congratulations with the first positive result in a quarter after 14 quarters without us. Well done, guys. Three questions for me. During this week, Copenhagen Airport informed that they will increase the charges and fees with 28%. It is likely that Avinor and other airports are to follow suit. What impact will this have on SAS? And my second question is, Avinor CEO also during this week estimated that passenger volume on domestic and international flights in Norway will not be back to 2019 level before 2027, 2028. Is this a true pessimistic scenario? And my last question is about sustainability. And do SAS plan after you have exited Chapter 11, to set up a green venture fund to invest in new technologies to speed up the green shifts? Excellent. Thanks, Hans Jørgen, and, yeah, good to be in touch. Thanks for your questions, and also thanks for your congratulations. As you know, I'll be the first to say that we have to do more, but indeed, it is really, like I said, good to see, and of course, also good for all the SAS team that we are indeed profitable for the first time since 2019. Copenhagen, and of course, the knock-on effects potentially with Avinor and everybody else. Yeah, it's not welcome, right? It's not helpful. I think it is still untimely, during a phase when the industry as a whole still struggles to regain full momentum post-pandemic. I think you have the same—at least in Sweden, there's the same saying as in Dutch, which is that one bird or one swallow doesn't still make summer, right? This is a good quarter, but let's look at the whole, right? And also when Abraham, or sorry, the CEO of Avinor, says that he expects that travel will only really recover by 2026, 2027, it shows you at least that it's not fully back yet, and we've had already a few very difficult years. So, yeah, difficult to see that, difficult to sometimes understand because we have to, of course, team up with our most relevant partners who are in essence, right, and, and, yeah, not being... I'm not using the word negatively here, but they are monopolists, right? It's very difficult for us, of course, to move really that capacity out and go somewhere else. So we have to partner up, and we have to deal with that differently. Now, we believe in Copenhagen that with also the incentive structures, incentive packages, that we have secured the best possible outcome for SAS. But it's clear that in certainly in Copenhagen, you were negotiating with your backs against the wall because the alternative is a fallback scenario that really would be worse for everyone. Then coming back to the CEO of Avinor's, I don't know, predictions right about passenger recovery. Yeah, we don't see that for 2026, 2027. I would still say that is probably earlier than that. What is clear is that still, in also those corporate markets, the rebound is slower than in the leisure markets, right? But we see also for the next, call it four months until Christmas, very healthy underlying, underlying demand. Overall trends absolutely up, and as a result, we put more capacity back also this winter, and I do think that that trend will continue. But you still see indeed that split between leisure and corporate on two different sides of the fence, call it. Yeah, your question on the green venture, I think is an interesting one. No, we do not have immediately a plan ourselves to set up a, call it investment fund or a, I don't know, incubator within SAS once we emerge from Chapter 11. I do think that we will then have more freedom to move on certain things, right? And it goes from various things on, for instance, hedging again, right? Where that is complicated at the moment for us to do, but certainly also be more, yeah, active again in the field. I think SAS traditionally and still is one of the most leading airlines in the world when it comes to sustainability. You would always like to do more, and I think very much around the topic of SAF, the production of SAF, the need to have more SAF, that is something that of course, we will only be interested in participating in, with other commercial entities. But, as such, right now, we don't have an idea to set up that green venture fund. But, I like the idea. Let me, let me start thinking about that for after emergence. Thank you. Thanks for your questions. Thank you, guys. Have a nice day. You too. The next question comes from Kurt Hofmann from Air Transport World. Please go ahead. Yes, good morning, gentlemen, and hi, Anko. Good to talk to you. Thanks for giving me some time to have my questions. Please, an update on some fleet topics. Just maybe let me know the pilot training, how is it doing now, right now, as you have so many wet-leased aircraft to... I think I understand it correctly, to cover this, to cover the training, how is it going forward? And do you have problems with your A320neo fleet in terms of engines, which other airlines also have? And then maybe I can like to ask you regarding your long haul fleet. ... Yeah, perfect, Kurt, and good to be in touch again. Good to, yeah, virtually see you. Thank you. Pilot training, so let's do first a tactical one. What was difficult for us in this quarter that we now also present? You have seen and heard us comment on the operational performance being a challenge, certainly because of ATC troubles in, for instance, Copenhagen. There, we had to take out, yeah, quite a chunk of capacity, cancellations and delays, of course, which had knock-on effects. It also meant that we couldn't produce the number of flights that we wanted to, for instance, to train our pilots, right? Mm-hmm. Yeah. That meant that in July, we therefore had a knock-on effect for our operations. Now, that's at least tactically, right? The Naviair air traffic control issue in Copenhagen has been resolved. We see far more stability. Like I said, this morning, I got the numbers on regularity for all of August against all of the airlines in Europe, and very good to see that SAS was at a 99.1% regularity, right? 99.1 regularity, that is really a decent number, and of course, it's much better than we've had over the last month, so that is good to see. Then long term, yeah, training and training events is definitely top of mind. We have quite a significant number of training events in SAS for a number of reasons. One, there is, of course, pilot retirements, and we bring in a lot of recruitments. We are recruiting heavily on that, but two, we have the 737 transition to the A320 fleet, right? Mm-hmm. So we have, in Norway, still phasing out of the 737s, and that we still need to train people for the A320s. Yeah. And then we have a program which we call Mixed Fleet Flying, which is that 330 and a 320 or 350 and a 320, right? So, also there, we are training quite, quite extensively. So yes, it's definitely a topic that will be, that will be with us for the next few years. The 320neo fleet and the engines, we've asked the same questions. I've also been in touch with some lessors. We don't really see that as other airlines are having that. And, yeah, long, long made at last, at least, right? We are quite, quite happy with the, with the performance, at least for now. Look, there's always issues. There's always things, of course, that we have, and that, that we want to improve also in our maintenance. But, no, we don't seem to have what some other airlines really are faced with, so that is at least the good news. Yeah, one more- With the Pratt- Sorry. Pratt, Pratt engines, not with the CFM LEAP engines- Yeah which we have on the news. We have the LEAPs. Ah, you have the LEAPS. Okay, one more questions. The 321LR you have, last time you told me maybe you have some new ideas, new some routes with that. Maybe you can give us an update on that. And regarding the wide-body fleet, it stays as it is with the numbers, or you think you will need more wide-bodies in the future or less? So I think in a way, let me tackle that again also as one answer. I do think that we will want to look at potentially increasing a bit more again on the wide-body side. I think when we look at the summer performance, it was clear we had to source in, right? Also, one wet lease on the wide-bodies. That is not the intention for next summer, for sure, and we will probably also over the years, also in the SAS Forward plan, we are trying to build out again the wide-bodies a bit more. 321LR, yeah, still somewhat of... Don't call it a question mark. That's probably too much, right? Mm-hmm. We, we like the aircraft, we've seen it, but there is, of course, that structural design issue on the center fuel tank. Okay ... therefore, more than other aircraft, it's sometimes on the ground that we need to fix that. That's a design issue. Airbus is completely aware of it, and we're, of course, talking to Airbus about it as well. But, I still think that we have good ideas. I still think it could very much add, either in the regions or in Copenhagen, building out, building out that hub. So it's definitely an aircraft that we, that we're looking at. It's on the radar, and I expect in October to have also with specific lessors, further conversations, and really just trying to see if there are opportunities, if there are possibilities, but, I don't expect to conclude that, anytime soon. We'll have a look whether really it makes sense for us. When is the last 737 flight? My final question. Oh, on top of my—I would say towards October, November, but let me, yeah, I'll email you a specific date if you really want to know that, but. Yeah ... it is really a matter of, it's soon, in relative terms. It is soon, yeah. And then- Thank- ... and then, of course, we have one very special, medevac aircraft, right? I don't know if you've ever seen it. That's right. But it's- Yes ... it's, it is, once again, I think we spent time on it last time in earnings call, but it is a remarkable feature for a commercial airline contributing. And here I'm really not trying to speak as a CEO of SAS, but really it is good to see. We have, yeah, an aircraft that you can transform overnight, literally overnight into a flying hospital. We have, over the last months in Ukraine, 2,000 passengers, both sick, wounded soldiers and patients that could not be helped anymore in Ukraine because of the state of the hospital structure there. And of course, their family members that we have taken out of Ukraine. So 2,000 passengers, roughly, over the last months that we've taken out. Yeah, very good to see that we're able to contribute there. Thank you, Anko, and congratulations to your results, to both of you. Thank you. Until soon. Bye-bye. Thank you. Bye, Kurt. And then let's wrap it up because we're one minute over time. Thank you all for participating. Thank you all for your questions, and I wish you all a very pleasant Friday, and I hope to see you on board of our aircraft really soon. Thank you.