SAS — Earnings Release 2013

Jan 10, 2014

SAS traffic figures December 2013

• The scheduled traffic (RPK) increased by 3.6%.
• SAS scheduled capacity (ASK) was up by 4.9%
• The SAS scheduled load factor decreased by 0.9 p.u. to 69.3%.
• • SAS carried 1.7 million scheduled passengers in December, up 2.5% vs last year.
• • The yield and PASK were down 4.6% and 8.8% respectively in November.

Market trends, PASK and yield development

Overall, the growth in the market has decreased since July with weakening demand and yield combined with intensified competition and over capacity on certain routes. Total market capacity has during the autumn 2013 increased by more than 10% in the Nordic region. Demand is strongest on intercontinental routes and relatively stable on routes within Scandinavia, while weaker on European routes. In this market environment, SAS has focused on defending its yield.

Currency adjusted yield in November 2013 was down 4.4% and PASK* was down 8,8% versus previous year, weak as expected. In December 2013, the change in yield and PASK vs. last year will continue to be negative.

Scandinavian Airlines scheduled traffic development

SAS continued to grow its capacity to, from and within the Norwegian and Swedish markets in December resulting in a growth in customer numbers by 8% in those markets. Intercontinental traffic increased in December by 4.7% and was particularly strong on the USA routes with a 20% growth. On European/ Intrascandinavian routes, capacity increased 5.9% and traffic increased 3.5%. On domestic routes, traffic was up 1.8% and 3.9% if adjusted for the closure of Finnish domestic routes. The traffic in December was affected by challenging weather conditions.

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

Product and news update

• SAS kept the position in December as the one and only IATA Platinum member in respect of Self Service/Fast Travel offering to its customers.
• SAS is now also offering Fast Track at the airports in Warsaw, Madrid, Barcelona and Palma.
• SAS announced that during spring 2014 it will open a domestic lounge at Oslo Gardermoen airport.

* SAS is from November 2013 reporting PASK instead of RASK in response to industry reporting.

Yield, PASK and punctuality			Nov 2013
				Change
No. of passengers (Mill.)	0,060	-15,9%	0,120	-5,4%
Passenger load factor	89,7%	-2,9 p u	91,3%	-2,2 p u
RPK (Mill.)	214	-17,3%	442	-5,3%
ASK (Mill.)	239	-14,6%	484	-3,0%
SAS charter traffic	Dec 13		Change Nov-Dec 13	Change
Europe/Intrascandinavia Domestic	3,5% 1,8%	5,9% 4,4%	-0,6% -0,2%	2,6% 3,3%
Intercontinental	4,7%	4,0%	2,7%	5,4%
development, schedule	RPK	ASK	RPK	ASK
Geographical	Dec 13 vs Dec 12		Nov-Dec 13 vs. Nov-Dec 12
No. of passengers (Mill.)	1,669	2,5%	3,763	-0,2%
Passenger load factor	69,3%	-0,9 p u	67,5%	-2,0 p u
RPK (Mill.)	1 831	3,6%	3 939	0,6%
ASK (Mill.)	2 643	4,9%	5 834	3,6%
SAS scheduled traffic	Dec 13		Change Nov-Dec 13	Change
Passenger load factor No. of passengers (Mill.)	71,0% 1,729	-1,4 p u 1,8%	69,3% 3,883	-2,1 p u -0,4%
RPK (Mill.)	2 045	1,0%	4 381	0,0%
ASK (Mill.)	2 882	3,0%	6 318	3,1%
(schedule and charter)	Dec 13		Change Nov-Dec 13	Change
SAS total traffic

Yield (change is currency adjusted),
SEK	1.05	-4.6 %
PASK (change is currency adjusted ),
SEK	0.69	-8.8%

	Dec 2013
Punctuality (arrival 15 min)	80.6%
Regularity	96.6%

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)