SAS — Earnings Release 2016

Jun 8, 2016

SAS traffic figures - May 2016

SAS traffic figures - May 2016

. Scheduled traffic (RPK) increased 11.3% and the capacity (ASK) was up 9.5%.

. The scheduled load factor improved by 1.2 p.u. versus last year to 73.4%.

. SAS carried 2.5 million scheduled passengers in May, up 6.6%.

. The preliminary currency adjusted yield and PASK were down 6% and 5%

respectively in May 2016. The nominal yield and PASK were down 10% and 9% in May

Market development

Demand has been positive in Scandinavia in the beginning of 2016. Demand for

long haul traffic, European leisure routes and domestic routes continue to grow.

At the same time, the overall Scandinavian market capacity has increased about 6

-7% until May. Due to the high market capacity growth and lower jet fuel prices,

the PASK and yield have declined more than anticipated.

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 May

SAS increased its scheduled capacity in May by 9.5% and the traffic was up by

11.3%. The overall load factor improved by 1.2 p.u. to 73.4% during the month.

The stronger load factor was primarily driven by higher load factors on European

routes to/from Norway and Sweden.

SAS intercontinental traffic increased 31.3% and the capacity was up 37.8%. The

long haul expansion has now peaked and the capacity growth will be somewhat

lower going forward. Despite decreasing the capacity by 3.3% on the

European/Intrascandinavian routes, traffic held up and was close to unchanged

versus last year. Capacity on the domestic routes was increased by 2.7% and the

traffic increased 6.2% with strongest growth noted on the domestic routes in

Denmark and Sweden.