SAS — Earnings Release 2015

Nov 6, 2015

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

SAS traffic figures October 2015

• Scheduled traffic (RPK) was up 3.9% and the capacity (ASK) was increased by 0.8%.
• The load factor improved by 2.3 p.u. to 76.9%.
• • SAS carried 2.6 million scheduled passengers in October, down 0.8%.
• • The currency adjusted yield and PASK were down 1.1% and 0.3% respectively in September. The nominal yield and PASK were down 1% and 0.3% respectively.

Market trends

Market conditions in Scandinavia have temporarily stabilized and the balance between capacity and demand has improved in comparison with 2014. While the competition remains very intensive in certain markets and the demand in regions with high exposure to the oil sector in Norway is weaker, demand for leisure oriented routes and SAS long haul traffic is growing.

In response to the growing demand, SAS will increase its intercontinental capacity by about 25% during the winter program through the 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 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

In September 2015, SAS' currency adjusted yield and PASK were down 1.1% and 0.3% respectively. The nominal yield and PASK were down 1% and 0.3% respectively. Also in October 2015 the currency adjusted PASK is expected to be lower than last year.

SAS scheduled traffic development in October

SAS increased its scheduled capacity in October by 0.8%. Demand responded well and traffic increased by 3.9%, primarily driven by growth on intercontinental routes and leisure oriented routes in Europe. The load factor improved 2.3 p.u. to 76.9%, the highest recorded for an October month.

SAS intercontinental capacity increased 4.4% and traffic was up 8%. The growth was driven by the new route between Stockholm and Hong Kong and positive development on existing routes. On European/ Intrascandinavian routes, capacity was increased by 0.1% and traffic was up 3.1%. Domestic traffic was down 1.8% at the same time as capacity was decreased 3.2%.

Product and news update

• SAS will commence daily flights between
• Copenhagen and Boston from late March 2016. • SAS launches eight new routes in its 2016 summer program.
• SAS has introduced fast Track at Bodö airport.
• SAS self service baggage drop has been introduced at Malmö airport.

SAS scheduled traffic	Oct 15	Change	Nov-Oct 15	Change
ASK (Mill.)	3 869	0,8%	40 877	-0,2%
RPK (Mill.)	2 977	3,9%	30 561	-0,4%
Passenger load factor	76,9%	+2,3 p u	74,8%	-0,1 p u
No. of passengers (Mill.)	2,587	-0,8%	26,941	-0,4%
Geographical	Oct 15 vs Oct 14			Nov 14 - Oct 15 vs. Nov 13 - Oct 14

development, schedule	RPK	ASK	RPK	ASK
Intercontinental	8,0%	4,4%	-1,8%	-0,3%
Europe/Intrascandinavia	3,1%	0,1%	-0,2%	-0,5%
Domestic	-1,8%	-3,2%	1,5%	0,5%
SAS charter traffic	Oct 15	Change	Nov-Oct 15	Change
ASK (Mill.)	260	3,7%	3 411	-18,5%
RPK (Mill.)	249	6,3%	3 219	-17,6%
Passenger load factor No. of passengers (Mill.)	95,5% 0,081	+2,4 p u 6,3%	94,4% 1,153	+1,0 p u -15,0%

SAS total traffic
(schedule and charter)	Oct 15	Change	Nov-Oct 15	Change
ASK (Mill.)	4 130	0,9%	44 288	-1,9%
RPK (Mill.)	3 225	4,1%	33 780	-2,4%
Passenger load factor	78,1%	+2,3 p u	76,3%	-0,3 p u
No. of passengers (Mill.)	2,668	-0,6%	28,094	-1,1%

	September
Yield, PASK and punctuality	2015	Change
Yield (change is currency adjusted),
SEK	1.02	-1.1%
PASK (change is currency adjusted),
SEK	0.79	-0.3%
		October 2015
Punctuality (arrival 15 min)		89.7%
Regularity		98.8%

SAS' definitions:

RPK – Revenue passenger kilometers

ASK – Available passenger kilometers

Load factor – RPK/ASK

Yield – Passenger revenues/RPK (scheduled) PASK – Passenger revenues/ASK (scheduled)