SAS — Earnings Release 2016

Dec 7, 2016

SAS traffic figures - November 2016

SAS traffic figures - November 2016

. Scheduled traffic (RPK) increased 17.3% and the capacity (ASK) was up 10.4%.

. The load factor improved by 4.4 p.u. versus last year to 73.7%, the highest

recorded for November.

. SAS carried 2.4 million scheduled passengers in November, up 7.1% vs. last

year.

. The preliminary currency adjusted yield and PASK were down 10% and 5% in

November 2016. The nominal yield was down 6% and the PASK was unchanged in

November 2016. The aviation tax in Norway has in effect been absorbed by the

airlines and contributed to the weaker yield development.

Market development

Although the demand is growing, the operating environment has become more

challenging. As noted previously, the yield has declined more than anticipated

during 2016. In addition, during the autumn jet fuel prices have started to

increase combined with an unfavorable USD appreciation versus the SEK. This has

had a negative effect on working capital and earnings. In addition, the

introduced aviation tax in Norway has had a negative effect on the yield

development.

The total capacity increase in 2015/16 amounts to 10%. In 2016/2017, SAS's total

capacity increase will be lower. The increase will primarily be driven by a full

-year effect from the new intercontinental routes that commenced during

2015/2016, increased capacity on leisure routes and the fact that the Airbus

A320neo is larger than the aircraft it will replace.

SAS scheduled traffic development in November

SAS increased its scheduled capacity in November by 10.4% and the traffic grew

17.3%. The overall load factor was 73.7%, the highest November load factor

recorded for SAS. The improvement was driven by positive development on SAS's

intercontinental routes and international routes within Europe.

SAS intercontinental traffic increased 29.4% and the capacity was up 21.8%. The

growth was driven by the new routes to/from Los Angeles and Miami.

The traffic on the European/Intrascandinavian routes increased by 13.6%. The

growth was strongest on leisure oriented routes. On domestic routes, the

capacity was increased by 1.6% and the traffic was up by 3.5%.