SAS — Earnings Release 2015

Oct 7, 2015

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

SAS traffic figures September 2015

• Scheduled traffic (RPK) was up 0.6% and the capacity (ASK) was reduced by 0.1%.
• The load factor improved by 0.6 p.u. to 77.2%.
• • SAS carried 2.6 million scheduled passengers in September, down 0.6%.
• • The currency adjusted yield and PASK were up 1.2% and 0.3% respectively in August. The nominal yield and PASK were up 3.3% and 2.5% respectively.

Market trends

Market conditions in Scandinavia have temporarily stabilized and the balance between capacity and demand has improved in comparison with 2014. However, the competition remains very intensive in certain markets and the demand in regions with high exposure to the oil sector in particularly Norway has weakened.

PASK and yield development

In August 2015, SAS' currency adjusted yield and PASK were up 1.2% and 0.3% respectively, as anticipated. The nominal yield and PASK were up 3.3% and 2.5% respectively. In September 2015 the currency adjusted PASK is expected to be marginally lower than last year.

SAS scheduled traffic development in September

SAS decreased its scheduled capacity in September by 0.1%. The traffic, however, increased by 0.6%, primarily driven by growth on intercontinental routes. The load factor improved 0.6 p.u. to 77.2%.

SAS intercontinental capacity increased 5.6% and the traffic was up 2.9%. The growth was driven by the new route between Stockholm and Hong Kong. On European/ Intrascandinavian routes, capacity was reduced by 3.7% but traffic only fell 0.5%, with strongest performance on routes to/from Sweden. Domestic traffic was down 0.6%, while capacity was increased 0.4%.

Product and news update

• SAS took delivery of two Airbus A330 E in September.
• SAS introduces double daily departures to New York from Copenhagen late October and closes the Stavanger-Houston route.
• SAS EuroBonus introduces 'Travel Cash' offering the ability to load 12 different currencies onto the EuroBonus card.

SAS scheduled traffic	Sep 15	Change	Nov-Sep 15	Change
ASK (Mill.)	3 761	-0,1%	37 008	-0,3%
RPK (Mill.)	2 902	0,6%	27 584	-0,8%
Passenger load factor	77,2%	+0,6 p u	74,5%	-0,4 p u
No. of passengers (Mill.)	2,586	-0,6%	24,354	-0,4%
Geographical	Sep 15 vs Sep 14		Nov 14 - Sep 15 vs. Nov 13 - Sep 14
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	2,9%	5,6%	-2,8%	-0,8%
Europe/Intrascandinavia	-0,5%	-3,7%	-0,5%	-0,5%
Domestic	-0,6%	0,4%	1,8%	0,9%

SAS charter traffic	Sep 15	Change	Nov-Sep 15	Change
ASK (Mill.)	387	0,7%	3 151	-19,9%
RPK (Mill.)	369	2,4%	2 971	-19,1%
Passenger load factor	95,2%	+1,6 p u	94,3%	+0,9 p u
No. of passengers (Mill.)	0,140	3,8%	1,072	-16,3%

SAS total traffic
(schedule and charter)	Sep 15	Change	Nov-Sep 15	Change
ASK (Mill.)	4 149	-0,1%	40 159	-2,2%
RPK (Mill.)	3 271	0,8%	30 555	-3,0%
Passenger load factor	78,9%	+0,7 p u	76,1%	-0,6 p u
No. of passengers (Mill.)	2,726	-0,4%	25,426	-1,2%

	August
Yield, PASK and punctuality	2015	Change
Yield (change is currency adjusted),
SEK	0.89	+1.2%
PASK (change is currency adjusted),
SEK	0.71	+0.3%
		September 2015
Punctuality (arrival 15 min)		89.1%
Regularity		98.6%

SAS' definitions:

RPK – Revenue passenger kilometers ASK – Available passenger kilometers Load factor – RPK/ASK

Yield – Passenger revenues/RPK (scheduled)

PASK – Passenger revenues/ASK (scheduled)