SAS — Earnings Release 2015

Aug 7, 2015

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

• • SAS carried 2.6 million passengers totally in July.
• Scheduled traffic (RPK) was unchanged and the capacity (ASK) was reduced by 0.5%.
• The load factor increased by 0.4 p.u. to 86.9%, the highest recorded load factor in a single month for SAS.
• • The currency adjusted yield and PASK were up 4.8% and 1.0% respectively in June. The nominal yield and PASK were up 7.9% and 4.0% respectively.

Market trends

Market conditions in Scandinavia have temporarily stabilized and the balance betw een capacity and demand has improved in comparison w ith 2014. How ever, the competition remains very intensive in certain markets.

PASK and yield development

In June 2015, SAS' currency adjusted yield and PA SK w ere up 4.8% and 1.0% respectively, slightly higher than guided. The nominal yield and PA SK w ere up 7.9% and 4.0% respectively. In July 2015 the change vs. last year in the currency adjusted PASK is expected to be slightly positive.

SAS scheduled traffic development in July

SAS strategy is to focus on Scandinavia's frequent travelers. During the summer months the travel pattern amongst frequent travelers changes tow ard more leisure oriented destinations. In response to this, SAS opened 47 seasonal routes. Demand responded particularly w ell to/from Denmark and Sw eden and grew by 3.5% combined w ith higher load factors. SAS total scheduled number of passengers also grew by 0.8%.

Scheduled capacity w as decreased 0.5% but traffic during July w as unchanged, w hich resulted in a 0.4 p.u. higher load factor of 86.9%. SAS intercontinental capacity w as increased by 0.6% but the traffic w as dow n 0.9%. While SAS decreased its capacity on European/ Intrascandinavian routes by 1.7%, traffic increased 0.3% in response to the seasonal route adjustments particularly on European routes. Domestic traffic w as up 1% and capacity w as up 3.1% primarily reflecting increased capacity on Sw edish domestic routes.

Product and news update

• Avianca Brasil joined Star Alliance.
• SAS w ill increase w inter program frequencies from Stockholm to Chicago and Copenhagen to Shanghai to daily.

SAS scheduled traffic	Jul 15	Change	Nov-Jul 15	Change
ASK (Mill.)	3 964	-0,5%	29 636	-0,4%
RPK (Mill.)	3 446	0,0%	21 775	-1,0%
Passenger load factor	86,9%	+0,4 p u	73,5%	-0,5 p u
No. of passengers (Mill.)	2,376	0,8%	19,406	-0,4%
				Nov 14 - Jul 15 vs.
Geographical	July 15 vs July 14		Nov 13 - Jul 14
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	-0,9%	0,6%	-3,7%	-1,8%
Europe/Intrascandinavia	0,3%	-1,7%	-0,5%	0,1%
Domestic	1,0%	3,1%	2,4%	0,7%
SAS charter traffic	Jul 15	Change	Nov-Jul 15	Change
ASK (Mill.)	593	-11,8%	2 225	-24,5%
RPK (Mill.)	577	-11,2%	2 094	-23,9%
Passenger load factor	97,4%	+0,7 p u	94,1%	+0,8 p u
No. of passengers (Mill.)	0,216	-11,2%	0,738	-20,7%
SAS total traffic
(schedule and charter)	Jul 15	Change	Nov-Jul 15	Change
ASK (Mill.)	4 556	-2,1%	31 861	-2,5%
RPK (Mill.)	4 023	-1,8%	23 869	-3,6%
Passenger load factor	88,3%	+0,3 p u	74,9%	-0,8 p u
No. of passengers (Mill.)	2,592	-0,4%	20,144	-1,3%

Yield, PASK and punctuality	June 2015	Change
Yield (change is currency adjusted), SEK	1.03	+4.8%
PASK (change is currency adjusted), SEK	0.82	+1.0%

	July 2015
Punctuality (arrival 15 min)	84.0%
Regularity	99.5%

SAS' definitions:

RPK – Revenue passenger kilometers ASK – Available passenger kilometers Load factor – RPK/ASK Yield – Passenger revenues/RPK (scheduled) PASK – Passenger revenues/ASK (scheduled)