STORY: SAS has filed for bankruptcy protection in the U.S.

The Scandinavian airline said Tuesday (July 5) that strike action by pilots has impacted its financial position and liquidity.

Wage talks broke down a day earlier.

That triggered a strike that has added to travel chaos in Europe as the summer vacation season begins.

SAS said Tuesday that it will continue to serve its customers during the bankruptcy process, though the strike is affecting services.

The airline said the purpose of the filing was to accelerate a restructuring process announced in February.

It hopes to attract new investors by slashing costs.

That includes for staff and for leased planes, many of which stand idle due to the closure of Russian airspace.

SAS said it has enough liquidity to keep going in the short term.

But it warned that its financial position could change if the strike is prolonged.

The carrier is part owned by the governments of Denmark and Sweden.

Denmark has said it could provide more cash if SAS attracts new private investment.

Sweden has refused to inject any more money.