SAS — Earnings Release 2016

Aug 8, 2016

SAS traffic figures - July 2016

SAS traffic figures - July 2016

. Scheduled traffic (RPK) increased 10.4% and the capacity (ASK) was up 8.8%.

. The scheduled load factor improved by 1.2 p.u. versus last year to the highest

load factor for a single month of 88.2%.

. SAS carried 2.5 million scheduled passengers in July.

. The preliminary currency adjusted yield was down 1% but the PASK was up 1% in

July 2016. The nominal yield and PASK were down 4% and 3% in July 2016.

Market development

Demand for long haul traffic, European leisure routes and domestic routes

continues to grow. In July, SAS transported a record number of passengers for a

July month and had the highest load factor ever for a single month. At the same

time, the overall Scandinavian market capacity has increased about 6-7% year to

date. The intensified competition and 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 with subsequent effect on the yield/PASK and will

contribute to an expected scheduled capacity growth of 10% during 2015/2016.

Number of flights is at the same time expected to increase by about 1%.

SAS scheduled traffic development in July  SAS increased its scheduled capacity

in July by 8.8% and the traffic grew 10.4%. The overall load factor increased by

1.2 p.u. to 88.2% during the month. The higher load factor was driven by

improvements within all segments of SAS network with stongest improvements

versus last year on domestic routes.

SAS intercontinental traffic increased 27.4% and the capacity was up 26.2%

resulting in a higher passenger load factor than last year. A record of more

than 185,000 passengers travelled on SAS intercontinental routes during the

month, driven by the new routes to Hong Kong, Los Angeles and Boston as well as

more frequencies on existing routes. The route between Stockholm and Los Angeles

had most passengers of all long haul routes with up to single daily departures

in July.

SAS Europe/Intrascandinavian routes grew by 2.3%. The growth was strong on

leisure oriented routes where traffic grew by 8%. Despite a capacity reduction

of 0.5% the domestic traffic was up by 4.9% following positive developments on

Swedish and Norwegian routes.