SAS — Earnings Release 2016

Feb 5, 2016

SAS traffic figures - January 2016

SAS traffic figures - January 2016

. Scheduled traffic (RPK) increased 11.4% and the capacity (ASK) was up by

14.8%.

. The load factor decreased by 1.9 p.u. to 63.7%.

. SAS carried 1.8 million scheduled passengers in January, up 5.2%.

. The preliminary currency adjusted yield and PASK were down 7% and 10% in

January 2016. The nominal yield and PASK were also down 10% and 13% in January

Market development and commentary

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

2016. Overall market capacity has gradually started to increase during the last

months and this trend is expected to continue, primarily on international

routes. Despite a very intensive competition coupled with a struggling oil

industry, it is satisfactory to note a stable domestic business. Market demand

for European leisure routes as well as long haul traffic remains strong and

growing.

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

capacity by about 25% during financial 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 intercontinental expansion, capacity growth is about 1%.

SAS scheduled traffic development in January  SAS increased its scheduled

capacity in January by 14.8%. The traffic increased by 11.4%, primarily driven

by growth on intercontinental and European routes. The overall load factor

declined by 1.9 p.u. to 63.7%.

SAS intercontinental traffic increased 15.9% and the capacity was up 22.2%. The

growth was driven by the new route between Stockholm and Hong Kong and more

frequencies on existing routes. Within Europe/Intrascandinavia, SAS increased

seasonal capacity on longer leisure routes which contributed to an overall

capacity increase of 14.9%. In particular, demand continued to be strong on

routes to/from Sweden. Domestic traffic was up 5.1% and capacity was increased

2.1%.