SAS — Capital/Financing Update 2022

Oct 5, 2022

SAS Reaches Agreements to Amend the Terms of Existing Aircraft and Equipment Lease Agreements

SAS Reaches Agreements to Amend the Terms of Existing Aircraft and Equipment Lease Agreements

SAS AB ("SAS" or the "Company") announces that it has reached agreements with 10

lessors, representing in aggregate 36 aircraft, to amend the terms of existing

aircraft and equipment lease agreements. The agreements constitute an important

step in reconfiguring the fleet and achieving the SEK 7.5 billion in annual cost

savings under the SAS FORWARD plan. The amended lease agreements are subject to

approval by the U.S. Bankruptcy Court for the Southern District of New York (the

"Court"), and to the plan of reorganization in the chapter 11 process becoming

effective.

The amended lease agreements have been entered into with 10 lessors - AerCap

Holdings N.V., Aergo Capital Limited, Aircastle Limited, ALAFCO Aviation Lease

and Finance Company, Avolon Aerospace Leasing Limited, CDB Aviation, Dubai

Aerospace Enterprise (DAE) Ltd., ICBC Aviation Leasing Co., Ltd., ORIX Aviation

Systems Limited and SDH Wings International Leasing Limited - representing in

aggregate 36 aircraft, including 3 wide bodies and 33 narrow bodies, as well as

certain equipment related thereto.

Through the amended lease agreements, SAS is well on track in achieving the

targeted annual cost savings of at least SEK 850 million to 1.0 billion in

reduced aircraft lease and capital costs, which constitutes an important step in

achieving the SEK 7.5 billion in annual cost savings by fiscal year 2026 under

the SAS FORWARD plan. The Company intends to continue negotiations with certain

other of its lessors to achieve further amendments in existing lease agreements.

Anko van der Werff, President and Chief Executive Officer of SAS, says:

"We continue to make progress in our chapter 11 process. The amended lease

agreements allow us to reconfigure our fleet and improve our cost structure,

which is a key element of our SAS FORWARD plan. We are grateful to our lessors

for working constructively with us, as we continue taking necessary actions to

become a more competitive airline and a stronger business partner to them. We

are continuing to pursue additional lease amendments so we can achieve our

targets."

Additional Information About the Chapter 11 Process and Implementation of SAS

FORWARD

On July 5, 2022, to accelerate the implementation of its comprehensive business

transformation plan SAS FORWARD, SAS announced that it had voluntarily filed for

chapter 11 in the U.S., a well-established and flexible legal framework for

restructuring businesses with operations in multiple jurisdictions. 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. The SAS FORWARD plan encompasses raising at least

SEK 9.5 billion in new equity capital as well as reducing or converting SEK 20

billion of debt into common equity (of which a majority is on-balance sheet

debt), including state hybrid notes, commercial hybrid notes, Swiss bonds, term

loans from states, aircraft lease liabilities and maintenance contract

obligations and other executory contract obligations. The new equity raise and

debt-to-equity conversions contemplated as part of SAS FORWARD will entail very

substantial dilution to existing shareholders. SAS targets to complete its court

-supervised process in the U.S. within 12 months from the commencement of the

chapter 11 process in July 2022.

Additional information about the Company's voluntary chapter 11 process is

available on the Company's dedicated restructuring

website,https://sasgroup.net/transformation. Court filings and other documents

related to the chapter 11 process in the U.S. are available on a separate

website administered by SAS' claims agent, Kroll Restructuring Administration

LLC, athttps://cases.ra.kroll.com/SAS. Information is also available by calling

(844) 242-7491 (U.S./Canada) or +1 (347) 338-6450 (International), as well as by

email at SASInfo@ra.kroll.com.

Advisors

Weil, Gotshal & Manges LLP is serving as global legal counsel, Norton Rose

Fulbright is serving as special aircraft finance counsel, and Mannheimer

Swartling Advokatbyrå AB is serving as Swedish legal counsel to SAS. Seabury

Securities LLC and Skandinaviska Enskilda Banken AB are serving as investment

bankers, Seabury is also serving as restructuring advisor. FTI Consulting is

serving as financial advisor.

For further information, please contact:

SAS Press office, +46 8 797 29 44

Louise Bergström, VP Investor Relations, +46 70 997 0493

This is information that SAS AB is obliged to make public pursuant to the EU

Market Abuse Regulation. The information was submitted for publication by Louise

Bergström at 08:00 a.m. CEST on October 5, 2022.

SAS, Scandinavia's leading airline, with main hubs in Copenhagen, Oslo and

Stockholm, is flying to destinations in Europe, USA and Asia. Spurred by a

Scandinavian heritage and sustainable values, SAS aims to be the global leader

in sustainable aviation. We will reduce total carbon emissions by 25 percent by

2025, by using more sustainable aviation fuel and our modern fleet with fuel

-efficient aircraft. In addition to flight operations, SAS offers ground

handling services, technical maintenance and air cargo services. SAS is a

founder member of the Star AllianceT, and together with its partner airlines

offers a wide network worldwide. Learn more at https://www.sasgroup.net

ADDITIONAL INFORMATION

The press release does not constitute an offer to sell or issue, or the

solicitation of an offer to buy or acquire, or subscribe for, shares or any

other financial instruments in SAS.

This press release contains forward-looking statements that reflect SAS' current

view of future events as well as financial and operational development. These

statements may include, without limitation, any statements preceded by, followed

by or including words such as "intend", "assess", "expect", "may", "plan",

"estimate" and other expressions involving indications or predictions regarding

future development or trends and other words and terms of similar meaning or the

negative thereof. These forward-looking statements have been prepared for

illustrative purposes only, are not based on historical facts, are not

guarantees of future performance, reflect SAS' beliefs and expectations, and are

subject to known and unknown risks, uncertainties and assumptions and other

factors that could cause actual events and performance to differ materially from

any expected future events or performance expressed or implied by such forward

-looking statements. As a result of these risks, uncertainties, assumptions and

other factors, you should not place undue reliance on these forward-looking

statements as a prediction of actual future events or otherwise. The information

contained in this press release is subject to change without notice and, except

as required by applicable law, SAS does not assume any responsibility or

obligation to update publicly or review any of the forward-looking statements

contained in it, whether as a result of new information, future events or

otherwise. Nothing in this press release constitutes or should be construed as

constituting a profit forecast.