SAS — Earnings Release 2016

Oct 7, 2016

SAS traffic figures - September 2016

SAS traffic figures - September 2016

. Scheduled traffic (RPK) increased 7.6% and the capacity (ASK) was up 7%.

. The scheduled load factor improved by 0.5 p.u. versus last year to 77.6%.

. SAS carried 2.7 million scheduled passengers in September, up 3% vs. last

year.

. The preliminary currency adjusted and nominal yield and PASK were down 8%

respective 7% in September 2016.

Market development

The demand for long haul traffic, European leisure routes and domestic routes

continues to grow. At the same time, the overall Scandinavian market capacity

has increased resulting in intensive competition. This combined with lower jet

fuel prices have put pressure on the yield that has declined more than

anticipated in 2016.

SAS is increasing its intercontinental capacity by about 25% during fiscal year

2015/2016 through new routes and frequencies. Overall, this has resulted in a

longer average stage length and will contribute to an expected scheduled

capacity growth of 10% during 2015/2016.

In 2016/2017, SAS plans to increase its capacity (ASK), primarily as a result of

the full-year effect of the investment in the intercontinental routes that was

started in 2015/2016, increased capacity on leisure

routes and the fact that the Airbus A320neo is larger than the aircraft it will

be replacing. The total increase will be lower than in 2015/2016.

SAS scheduled traffic development in September  SAS increased its scheduled

capacity in September by 7% and the traffic grew 7.6%. The overall load factor

was 77.6%, the highest September load factor recorded for SAS. The improvement

was driven by positive development on SAS's intercontinental routes and in

particular the domestic routes in Norway and Sweden.

SAS intercontinental traffic increased 22.4% and the capacity was up 21.8%. The

growth was driven by the new routes to Los Angeles and Boston and also toward

the end of the month Miami.

The traffic on the Europe/Intrascandinavian routes decreased by 2%, primarily

due to reduced capacity to/from Norway. On domestic routes, the capacity was

decreased by 0.9% but the traffic was up by 5.7% following positive developments

in all three Scandinavian domestic markets.