SAS — Earnings Release 2016

Nov 7, 2016

SAS traffic figures - October 2016

SAS traffic figures - October 2016

. Scheduled traffic (RPK) increased 13% and the capacity (ASK) was up 10.4%.

. The scheduled load factor improved by 1.8 p.u. versus last year to 78.7%.

. SAS carried 2.7 million scheduled passengers in October, up 3.3% vs. last

year.

. The preliminary currency adjusted yield and PASK were down 12% and 10% in

October 2016. The nominal yield and PASK were down 10% and 8% in October 2016.

The yield and PASK are affected by a one off increase in the EuroBonus

liability, affecting the ratios negatively by almost 2 p.u..

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. Altogether this will have

a noticeable impact on the financial development during August-October 2016.

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 October

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

13%. The overall load factor was 78.7%, the highest October load factor recorded

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

intercontinental routes and in particular the domestic routes in Sweden and

Denmark.

SAS intercontinental traffic increased 34.1% and the capacity was up 30.5%. The

growth was driven by the new routes to Los Angeles, Miami and Boston and

additional frequencies to New York and Shanghai.

The traffic on the European/Intrascandinavian routes increased by 1.7%. The

growth was strongest on intrascandinavian routes. On domestic routes, the

capacity was decreased by 0.1% but the traffic was up by 2.6%. The traffic

increased in all three domestic markets.