SAS — Earnings Release 2014

Nov 10, 2014

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

SAS traffic figures October 2014

• • SAS carried a total of 2.7 million passengers in October, up 7.9%.
• The total traffic (RPK) increased by 7.2%.
• The total capacity (ASK) was up by 4.2%.
• The total load factor increased by 2.1 p.u. to 75.8%.
• • The yield and PASK were up 1.9% and 4.6% respectively in September. The currency adjusted yield was down 1.9% while the currency adjusted PASK was up 0.7%.

Market trends, PASK and yield development

Market conditions remain challenging. Since the introduction of the summer 2014 program, load factors have improved and in October 2014, SAS reports its seventh consecutive month with an improvement in the load factor versus last year.

In September, SAS' yield and PASK were up 1.9% and 4.6% respectively. The currency adjusted yield was down 1.9% while the currency adjusted PASK was up 0.7%, in line with expectations. In October 2014 the change in the currency adjusted PASK vs. last year is also expected to be close to unchanged compared with last year.

SAS scheduled traffic development in October SAS scheduled capacity increased in October by 4.7%.

Traffic grew by 8.1% resulting in a 2.3 p.u. improvement in the load factor to 74.6%. The traffic on SAS intercontinental routes grew 4.8%, driven by the USA routes. Traffic on SAS European/ Intrascandinavian routes grew 11.7%.The growth was strongest on SAS intrascandinavian and European leisure oriented routes.

Domestic routes grew 4.4% combined with a positive load factor development.

Product and news update

• SAS has lunched 9 new routes to be opened during 2015.
• In October, SAS launched a sales campaign with 1 million tickets for sale at attractive prices.
• SAS has initiated its marketing concept "We are all travelers". "We Are Travelers" is a long-term concept that reflects that SAS is the obvious choice for frequent travelers in Scandinavia.

			Change
			4,4%
			5,9%
			+1,1 p u
2,685	7,9%	28,418	6,3%
	Oct 14 4 091 3 100 75,8%	Change 4,2% 7,2% +2,1 p u	Nov-Oct 14 45 158 34 594 76,6%

SAS scheduled traffic	Oct 14	Change	Nov-Oct 14	Change
ASK (Mill.)	3 840	4,7%	40 971	4,5%
RPK (Mill.)	2 866	8,1%	30 686	6,3%
Passenger load factor	74,6%	+2,3 p u	74,9%	+1,3 p u
No. of passengers (Mill.)	2,608	8,2%	27,061	6,3%

Geographical	Oct 14 vs Oct 13		Nov-Oct 14 vs. Nov-Oct 13
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	4,8%	9,4%	3,5%	4,6%
Europe/Intrascandinavia	11,7%	3,7%	10,0%	4,9%
Domestic	4,4%	0,6%	2,4%	3,3%

SAS charter traffic	Oct 14	Change	Nov-Oct 14	Change
ASK (Mill.)	251	-2,8%	4 186	3,6%
RPK (Mill.)	234	-2,1%	3 908	2,7%
Passenger load factor	93,1%	+0,6 p u	93,4%	-0,8 p u
No. of passengers (Mill.)	0,077	0,4%	1,357	4,4%

Yield, PASK and punctuality	Sep 2014	Change
Yield (change is currency adjusted),
SEK	1.03	-1.9%
PASK (change is currency adjusted),
SEK	0.79	+0.7%
		October 2014
Punctuality (arrival 15 min)		89.7%
Regularity		99,2%

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)