SAS — Earnings Release 2016

Apr 7, 2016

SAS traffic figures - March 2016

SAS traffic figures - March 2016

. Scheduled traffic (RPK) increased 4% and the capacity (ASK) was up 6.8%.

. The load factor decreased 2 p.u. to 71.4%.

. SAS carried 2.3 million scheduled passengers in March, down 6.1%.

. The preliminary currency adjusted yield and PASK were down 14% and 16% in

March 2016. The nominal yield and PASK were down 17% and 19% in March 2016.

Market development and commentary

Demand has been positive in Scandinavia during 2015 and in the beginning of

2016. Overall market capacity has increased about 7% during the winter program,

with the strongest growth on primarily international routes. The capacity growth

is expected to slow down slightly during the summer program. Demand for European

leisure routes, long haul traffic and, when adjusted for the Easter holiday and

industrial actions during March last year, domestic routes continue to grow.

In response to the growing demand, SAS is increasing its intercontinental

capacity by about 25% during fiscal year 2015/2016 through new routes and

frequencies already announced. Also, until April 2016 larger aircraft will

replace phased out Boeing 717 primarily in Sweden. Overall, this will result in

a longer average stage length with subsequent effect on the yield/PASK and

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

Excluding the intercontinental expansion, capacity growth is about 1%.

SAS scheduled traffic development in March  SAS increased its scheduled capacity

in March by 6.8%. The traffic increased by 4%. It should be noted that last

year's traffic figures were significantly affected by industrial actions amongst

Scandinavian and European carriers. The overall load factor declined by 2 p.u.

to 71.4%.

SAS intercontinental traffic increased 15.8%. The response to SAS refreshed long

haul cabin has been strong and traffic in Business Class increased during the

month by 47%. Intercontinental capacity was up 22.7%. The growth was driven by

new routes to Hong Kong, Los Angeles and Boston as well as more frequencies on

existing routes. The new route Stockholm-Los Angeles had a load factor above

85%. Within Europe/ Intrascandinavia, SAS increased capacity by 3.5% and traffic

was up 3.4%. Due to the Easter holiday, capacity on the domestic routes was

reduced by 7.7%, which contributed to a traffic decline of 12.7%.