SAS — Earnings Release 2014

Dec 9, 2014

Scandinavian Airlines 195 87 Stockholm Telephone: +46 8-797 0000 Fax: +46 8-797 1515

SAS traffic figures November 2014

• • SAS carried a total of 2.2 million passengers in November, up 2.3%.
• The total traffic (RPK) increased by 0.2%.
• The total capacity (ASK) was down by 3.7%.
• The total load factor increased by 2.7 p.u. to 70.7%.
• • The yield and PASK were up 1.8% and 5.0% respectively in October. The currency adjusted yield was down 2.9% while the currency adjusted PASK was up 0.2%.

Market trends, PASK and yield development

As indicated earlier, as part of the winter-season program, SAS plans to hold back on the capacity growth. In line with this, SAS reduced the capacity during November 2014. Market conditions remain challenging, however load factor has increased steadily since the introduction of the summer 2014 program, In November 2014 SAS reports its eighth consecutive month with an improvement in the load factor versus last year.

In October, SAS' yield and PASK were up 1,8% and 5% respectively. The currency adjusted yield was down 2.9% while the currency adjusted PASK was up 0.2%, in line with expectations. In November 2014 the change in the currency adjusted PASK vs. last year is also expected to be positive.

SAS scheduled traffic development in November

SAS scheduled capacity was decreased in November by 1.4%. Traffic grew by 3.7% resulting in a 3.4 p.u. improvement in the load factor to 69.5%.

The traffic on SAS intercontinental routes grew 3.5%, driven by the USA routes. Traffic on SAS European/ Intrascandinavian routes grew 4.1% with strongest growth on SAS intrascandinavian routes. Domestic traffic grew 2.8% combined with a positive load factor development.

Product and news update

• SAS and Etihad launched plans to enter into a code-share agreement.
• SAS extended its wetlease agreement with Flybe regarding four ATR aircraft.
• In November, SAS signed an agreement for regulator supply of bio-fuel at Oslo airport.

SAS total traffic
(schedule and charter)	Nov 14	Change	Nov-Nov 14	Change
ASK (Mill.)	3 310	-3,7%	3 310	-3,7%
RPK (Mill.)	2 341	0,2%	2 341	0,2%
Passenger load factor	70,7%	+2,7 p u	70,7%	+2,7 p u
No. of passengers (Mill.)	2,203	2,3%	2,203	2,3%

SAS scheduled traffic	Nov 14	Change	Nov-Nov 14	Change
ASK (Mill.)	3 145	-1,4%	3 145	-1,4%
RPK (Mill.)	2 186	3,7%	2 186	3,7%
Passenger load factor	69,5%	+3,4 p u	69,5%	+3,4 p u
No. of passengers (Mill.)	2,161	3,3%	2,161	3,3%

Geographical	Nov 14 vs Nov 13		Nov-Nov 14 vs. Nov-Nov 13
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	3,5%	2,7%	3,5%	2,7%
Europe/Intrascandinavia	4,1%	-4,1%	4,1%	-4,1%
Domestic	2,8%	-1,0%	2,8%	-1,0%

SAS charter traffic	Nov 14	Change	Nov-Nov 14	Change
ASK (Mill.)	164	-32,9%	164	-32,9%
RPK (Mill.)	155	-31,8%	155	-31,8%
Passenger load factor	94,5%	+1,6 p u	94,5%	+1,6 p u
No. of passengers (Mill.)	0,042	-31,0%	0,042	-31,0%

Yield, PASK and punctuality	Oct 2014	Change
Yield (change is currency adjusted),
SEK	1.02	-2.9%
PASK (change is currency adjusted),
SEK	0.76	+0.2%

	November 2014
Punctuality (arrival 15 min)	92.4%
Regularity	99,3%

SAS' definitions:

RPK – Revenue passenger kilometers

ASK – Available passenger kilometers

Load factor – RPK/ASK Yield – Passenger revenues/RPK (scheduled)

PASK – Passenger revenues/ASK (scheduled)

RASK – Total traffic revenues/total ASK (scheduled+charter)