SAS — Earnings Release 2015

Jun 5, 2015

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

• • SAS carried a total of 2.4 million passengers in May.
• The total traffic (RPK) decreased by 8.7%.
• The total capacity (ASK) was reduced by 4.4%.
• The total load factor decreased by 3.4 p.u. to 73.6%.
• • The currency adjusted yield and PASK were up 13.6% and 0.6% respectively in April. The nominal yield and PASK were up 18.7% and 5.1% respectively.

Market trends

Market conditions in Scandinavia have temporarily stabilized and the balance between capacity and demand has improved in comparison with 2014. SAS summer program has been well received with incoming bookings at expected levels. However, the competition remains very intensive in certain markets.

PASK and yield development

In April 2015, SAS' currency adjusted yield and PASK were up 13.6% and 0.6% respectively as expected. The nominal yield and PASK were up 18.7% and 5.1% respectively. In May 2015 the change in the currency adjusted yield vs. last year is expected to be single digit positive, and the change in the currency adjusted PASK vs. last year is expected to be close to unchanged.

SAS scheduled traffic development in May

SAS traffic development in May 2015 is an outcome of the reduced capacity by 2.7%, more active yield management, uncertainties relating to industrial actions and shall also be set in relation to the strong traffic growth, very high passenger load factor and weak yield last year. In total 147 flights were cancelled in May 2015 due to industrial actions. Booking levels have normalized after the completion of new modern pilot collective bargain agreements.

Traffic during May decreased 7.3%, which resulted in a decline in the load factor of 3.6 p.u. to 72.2%. SAS intercontinental capacity was decreased by 9.3% and the traffic was down 9.6%. SAS traffic on European/Intrascandinavian routes decreased 6.8% from high levels last year. Domestic traffic was down 4.2% and capacity was down 2.4%.

Product and news update

• SAS will increase frequencies between New York and Stockholm/Oslo and Copenhagen-San Francisco to daily departures during the next winter program.
• SAS opened a new SAS Café lounge at Tromsö airport in May.

SAS total traffic
(schedule and charter)	May 15	Change	Nov-May 15	Change
ASK (Mill.)	3 901	-4,4%	23 177	-2,7%
RPK (Mill.)	2 873	-8,7%	16 477	-3,6%
Passenger load factor	73,6%	-3,4 p u	71,1%	-0,7 p u
No. of passengers (Mill.)	2,426	-9,1%	14,782	-0,8%

SAS scheduled traffic	May 15	Change	Nov-May 15	Change
ASK (Mill.)	3 636	-2,7%	21 981	-0,4%
RPK (Mill.)	2 626	-7,3%	15 377	-0,7%
Passenger load factor	72,2%	-3,6 p u	70,0%	-0,2 p u
No. of passengers (Mill.)	2,335	-8,5%	14,418	0,1%

Geographical	May 15 vs May 14		Nov 14 - May 15 vs. Nov 13 - May 14
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	-9,6%	-9,3%	-3,8%	-1,9%
Europe/Intrascandinavia	-6,8%	1,1%	-0,1%	0,4%
Domestic	-4,2%	-2,4%	3,5%	0,1%

SAS charter traffic	May 15	Change	Nov-May 15	Change
ASK (Mill.)	265	-23,2%	1 196	-31,9%
RPK (Mill.)	247	-21,1%	1 100	-32,0%
Passenger load factor	93,2%	+2,5 p u	92,0%	-0,1 p u
No. of passengers (Mill.)	0,091	-20,6%	0,364	-27,9%

Yield, PASK and punctuality	Apr 2015	Change
Yield (change is currency adjusted),
SEK	1.01	+13.6%
PASK (change is currency adjusted),
SEK	0.70	+0.6%
		May 2015
Punctuality (arrival 15 min)		91.1%
Regularity		98.5%

SAS' definitions:

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