SAS — Earnings Release 2014

Jun 9, 2014

SAS traffic figures May 2014

• • SAS carried 2.6 million scheduled passengers in May, up 7.8%.
• The scheduled traffic (RPK) increased by 7.8%.
• The scheduled capacity (ASK) was up by 4.5%.
• The scheduled load factor increased by 2.3 p.u. to 75.8%.
• • The yield and PASK were down 16.6% and 6.4% respectively in April and currency adjusted down 17.6% and 7.5%.

Market trends, PASK and yield development

Market conditions remain challenging. The yield and PASK are expected to continue to decline in 2013/2014. Since the introduction of the summer 2014 program, load factors have improved. Demand continues to be strong on intercontinental routes and relatively stable on routes within Scandinavia, while weaker on European routes.

In April, SAS' currency-adjusted yield and PASK fell by 17.6% and 7.5% respectively, partially explained by the Easter occurring in April this year. In May, SAS expects the change in yield and PASK vs. last year to continue to be negative.

SAS has initiated a large number of growth enhancing activities that have resulted in more passengers and an improved load factor.

SAS scheduled traffic development

SAS increased its scheduled capacity by 4.5% in May 2014 versus last year. The traffic growth was strongest on the European/ Instrascandinavian routes with an increase of 13.3% and with particularly strong performance on routes to/from Sweden. Traffic on Intercontinental routes increased 4% combined with slightly higher load factors. On domestic routes the traffic growth of 0.4% did not absorb the capacity growth of 4.7%.

SAS scheduled capacity increase for the financial year 2013/14 as a whole is expected to be up approximately 3-4%.

Product and news update

• SAS opened its new domestic lounge at Oslo Gardermoen on 2 June.
• SAS has introduced Fast Track security checks at Stavanger and Trondheim airports
• SAS is updating the interior of its long haul fleet with the first aircraft expected to go into service in early 2015. The first images of the new cabin was released in May.

SAS total traffic
(schedule and charter)	May 14		Change Nov-May 14	Change
ASK (Mill.)	4 083	6,7%	23 819	3,9%
RPK (Mill.)	3 147	9,9%	17 100	4,2%
Passenger load factor	77,1%	+2,2 p u	71,8%	+0,2 p u
No. of passengers (Mill.)	2,668	8,8%	14,908	3,6%

SAS scheduled traffic	May 14		Change Nov-May 14	Change
ASK (Mill.)	3 737	4,5%	22 063	3,9%
RPK (Mill.)	2 834	7,8%	15 483	4,4%
Passenger load factor	75,8%	+2,3 p u	70,2%	+0,3 p u
No. of passengers (Mill.)	2,553	7,8%	14,404	3,6%

Geographical	May 14 vs May 13		Nov-May 14 vs. Nov-May 13
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	4,0%	3,4%	3,4%	4,1%
Europe/Intrascandinavia Domestic	13,3% 0,4%	5,2% 4,7%	6,8% 0,5%	3,8% 4,0%

SAS charter traffic	May 14		Change Nov-May 14	Change
ASK (Mill.)	345	38,5%	1 756	3,7%
RPK (Mill.)	313	34,3%	1 617	2,0%
Passenger load factor	90,7%	-2,9 p u	92,1%	-1,5 p u
No. of passengers (Mill.)	0,115	35,8%	0,504	5,4%

Yield, PASK and punctuality	Apr 2014	Change
Yield (change is currency adjusted), SEK	0.85	-17.6%
PASK (change is currency adjusted), SEK	0.67	-7.5%

	May 2014
Punctuality (arrival 15 min)	91.2%
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)