SAS shares surge on Denmark hopes

STORY: Shares in airline SAS surged as much as 45% on Friday (June 10).

Investors were cheered after Denmark said it was willing to write off debt owed by the loss-making carrier.

Finance Minister Nicolai Wammen also said the country could invest more capital.

But lawmakers agreed that was only if private investors put money in as well, and the company proved its future viability.

Denmark owns 21.8% of SAS, but Wammen said it could raise that as high as 30%.

SAS was not immediately available for comment.

The airline has struggled to cut costs while it tries to save itself from collapse.

There was more negative news from co-owner Sweden earlier this week.

In contrast to Denmark, the Swedish government said it would not invest more money.

And there were more challenges for SAS this week.

Around 1,000 pilots warned on Thursday (June 9) they could go on strike from late June over wages and plans to cut costs.

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