SAS — Earnings Release 2015

Jul 7, 2015

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

• • SAS carried a total of 2.8 million passengers in June.
• The total traffic (RPK) decreased by 5.2%.
• The total capacity (ASK) was reduced by 2.2%.
• The total load factor decreased by 2.6 p.u. to 81.6%.
• • The currency adjusted yield and PASK were up 5.6% and 0.6% respectively in May. The nominal yield and PASK were up 9.9% and 4.7% 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.

PASK and yield development

In May 2015, SAS' currency adjusted yield and PASK were up 5.6% and 0.6% respectively as expected. The nominal yield and PASK were up 9.9% and 4.7% respectively. In June 2015 the change vs last year in the currency adjusted PASK is expected to be slightly negative.

SAS scheduled traffic development in June

SAS traffic development in June 2015 is a result of a planned reduction of the capacity together with a more active yield management. The development shall also be set in relation to last year's strong traffic growth, high passenger load factor and weak yield. During June 44 seasonal routes were opened as part of the network adjustment for the summer months as a response to increasing demand on leisure routes, particularly to southern Europe. Traffic responded above all well to/from Sweden where it grew by approximately 6%.

Scheduled capacity was decreased 0.2% while traffic during June decreased 3.8%, which resulted in a decline in the load factor of 3 p.u. to 80%. SAS intercontinental capacity was decreased by 3.7% and the traffic was down 5.6%. During June, the fourth upgraded long haul aircraft was phased into traffic. SAS traffic on European/ Intrascandinavian routes decreased 3.1% from high levels last year. Domestic traffic was down 2.6% and capacity was up 2.7%.

Product and news update

• SAS Fast Track is from June now also available in Aalborg.
• SAS self service bag drop is now available at Gothenburg airport.
• SAS has introduced self service transfer checkin kiosks at SAS three main hubs.

SAS total traffic
(schedule and charter)	Jun 15	Change	Nov-Jun 15	Change
ASK (Mill.)	4 128	-2,2%	27 305	-2,6%
RPK (Mill.)	3 369	-5,2%	19 846	-3,9%
Passenger load factor	81,6%	-2,6 p u	72,7%	-1,0 p u
No. of passengers (Mill.)	2,771	-4,8%	17,552	-1,5%

SAS scheduled traffic	Jun 15	Change	Nov-Jun 15	Change
ASK (Mill.)	3 691	-0,2%	25 673	-0,3%
RPK (Mill.)	2 953	-3,8%	18 329	-1,2%
Passenger load factor	80,0%	-3,0 p u	71,4%	-0,6 p u
No. of passengers (Mill.)	2,612	-4,2%	17,030	-0,6%

Geographical	June 15 vs June 14		Nov 14 - Jun 15 vs. Nov 13 - Jun 14
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	-5,6%	-3,7%	-4,1%	-2,2%
Europe/Intrascandinavia	-3,1%	0,8%	-0,6%	0,5%
Domestic	-2,6%	2,7%	2,6%	0,4%

SAS charter traffic	Jun 15	Change	Nov-Jun 15	Change
ASK (Mill.)	437	-16,1%	1 633	-28,3%
RPK (Mill.)	417	-13,9%	1 517	-27,8%
Passenger load factor	95,5%	+2,5 p u	92,9%	+0,6 p u
No. of passengers (Mill.)	0,158	-13,2%	0,522	-24,0%

Yield, PASK and punctuality	May 2015	Change
Yield (change is currency adjusted),
SEK	1.02	+5.6%
PASK (change is currency adjusted),
SEK	0.74	+0.6%
		June 2015
Punctuality (arrival 15 min)		87.9%
Regularity		98.7%

SAS' definitions:

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