SAS — Earnings Release 2016

Nov 7, 2016

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

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 fullyear 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.

Product and news update

• SAS took delivery of its first Airbus A320neo.
• SAS opened Service Point centers at Gothenburg and Åre/Östersund airports. A Service Point is an open, modern and welcoming area where customers can get check in support, help with ticket issues as well as relax and recharge batteries before flight departures.

SAS scheduled traffic	Oct 16	Change	Nov-Oct 16	Change
ASK	4 270	10.4%	44 956	10.0%
RPK	3 363	13.0%	33 508	9.6%
Passenger load factor	78.7%	+1.8 p u	74.5%	-0.2 p u
No. of passengers (Mill.)	2.673	3.3%	27.738	3.0%
				Nov 15 - Oct 16 vs.
	Oct 16 vs. Oct 15			Nov 14 - Oct 15
Geographical	RPK	ASK	RPK	ASK
development. schedule
Intercontinental	34.1%	30.5%	25.2%	27.6%

Europe/Intrascandinavia 1.7% 1.6% 1.6% 2.9% Domestic 2.6% -0.1% 2.6% 0.6%

SAS charter traffic	Oct 16	Change	Nov-Oct 16	Change
ASK	307	18.0%	3 665	7.4%
RPK	288	15.6%	3 432	6.6%
Passenger load factor	93.6%	-1.9 p u	93.6%	-0.7 p u
No. of passengers (Mill.)	0.100	22.5%	1.270	10.2%
SAS total traffic	Oct 16	Change	Nov-Oct 16	Change
ASK	4 577	10.8%	48 620	9.8%
RPK	3 650	13.2%	36 940	9.4%

Passenger load factor 79.7% +1.6 p u 76.0% -0.3 p u No. of passengers (Mill.) 2.773 3.9% 29.009 3.3%

Preliminary yield and PASK	October 2016	Nominal change	FX adjusted change
Yield, SEK	0.86	-10%	-12%
PASK, SEK	0.68	-8%	-10%

	October 2016
Punctuality (arrival 15 min)	87.6%
Regularity	99.3%

SAS's definitions:

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

Björn Tibell, Head of Investor Relations +46 70 997 1437 or bjorn.tibell@sas.se

SAS AB discloses this information pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11:00 CET on 7 November 2016.

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