SAS — Earnings Release 2015

Dec 7, 2015

SAS traffic figures - November 2015

SAS traffic figures - November 2015

. Scheduled traffic (RPK) increased 9.6% and the capacity (ASK) was up by 9.8%.

. The load factor decreased by 0.2 p.u. to 69.3%.

. SAS carried 2.2 million scheduled passengers in November, up 3.7%.

. The preliminary currency adjusted yield and PASK were both down 7% and the

nominal yield and PASK were down 8% in November 2015.

Market development and commentary

Demand has been positive in Scandinavia during 2015. Overall market capacity has

gradually started to increase during the last months and this trend is expected

to continue, primarily on international routes. While the competition remains

very intensive in certain markets and the demand in regions with high exposure

to the oil sector is weaker, demand for leisure oriented routes and SAS long

haul traffic is growing.

In response to the growing demand, SAS is increasing its intercontinental

capacity by about 25% during the winter program through new routes and

frequencies already announced. Also, until April 2016 larger aircraft will

replace phased out Boeing 717 primarily in Sweden. Overall, this will result in

a longer average stage length with subsequent effect on the yield/PASK and

contribute to an expected scheduled capacity growth of 10-12% during the winter

program. Excluding the long haul expansion the capacity growth is 3-4%. The

total number of flights will however only increase by about 1%.

PASK and yield development Oct-Nov

In October 2015, SAS' currency adjusted yield and PASK were down 4.3% and 1.3%

respectively. From November 2015, SAS will report PASK and yield for the same

month as the reported traffic development as shown in the table on the right.

SAS scheduled traffic development in November  SAS increased its scheduled

capacity in November by 9.8%. The traffic responded well and increased by 9.6%,

primarily driven by growth on intercontinental routes. The overall load factor

declined marginally by 0.2 p.u. to 69.3% mainly due to lower load factors on

certain European routes.

SAS intercontinental capacity was increased 19.2% and the traffic grew 19.6%.

The growth was driven by the new route between Stockholm and Hong Kong and more

frequencies on existing routes. On European/ Intrascandinavian routes, capacity

was increased by 6.9%. Traffic grew well, but did not match the capacity growth

primarily in the Belgian and UK/Irish market. Demand continued to be strongest

on leisure routes and on routes to/from Sweden. Domestic traffic was up 2.9%,

and capacity was increased 3%.