SAS — Earnings Release 2017

Dec 7, 2017

Scandinavian Airlines

195 87 Stockholm Telephone: +46 8-797 0000 Fax: +46 8-797 1515

SAS traffic figures November 2017

• During the autumn/winter 2016, SAS's load factors and volumes were record high following SAS 70 year's anniversary campaign. This year's decline in volume, load factor and increased yield reflect a normalization of the traffic volumes.
• Scheduled traffic (RPK) decreased 6.1% and the capacity (ASK) was up 0.9%.
• The load factor decreased by 5.1 p.u. versus last year to 68.6%.
• Scheduled number of passengers amounted to 2.3 million in November.
• The preliminary currency adjusted yield and PASK increased 9% and 1% respectively in November 2017 vs. last year. The nominal yield increased 6% and the PASK decreased 2% in November 2017 vs. last year.

Market development and capacity outlook

The capacity in the Scandinavian market has accelerated during the autumn in line with SAS's expectations. This development is expected to continue during the winter program 2017/2018. SAS's overall load factor and traffic volumes declined versus last year at the same time as the yield improved strongly. This is explained by last year's 70 year's anniversary campaign, that resulted in record high volumes and weak yield, combined with the phase in of larger aircraft in 2017. The traffic volumes in November 2017 and load factor are therefore more in line with the levels prior to 2016. This trend is expected to continue during the winter program 2017/2018.

In fiscal year 2017/2018, SAS plans to increase capacity (ASK) by around 1–3%, driven by longer European routes and the fact that the Airbus A320neo has more seats than the aircraft being replaced.

SAS scheduled traffic development in November

SAS increased its scheduled capacity in November by 0.9% and the traffic decreased by 6.1%, resulting in a load factor of 68.6%, 5.1 p.u. lower than last year. This is driven by last year's campaign and larger aircraft.

SAS's intercontinental capacity was reduced by 2.6% and the traffic decreased 12.8%. During the next months, the capacity on SAS's long haul routes is also planned to decrease as one wet leased Boeing 737 was phased out in August 2017.

The traffic on SAS's European/Intrascandinavian routes decreased by 1.5%. At the same time the capacity was increased 3.5%. The traffic continued to grow on leisure oriented routes in Europe.

On SAS's domestic routes, the capacity was increased by 1.3%, driven by higher capacity on Danish domestic routes. The traffic decreased by 2.1%.

Product and news update

• SAS has launched SAS Go Light on its routes to the USA.
• SAS has taken delivery of 13 Airbus A320neo
• As part of the increased seasonal network adjustments, SAS is during the winter introducing new routes to Madeira, Chambéry, Tromsö and Eilat.

SAS scheduled traffic	Nov 17	Change	Nov-Nov 17	Change
ASK (Mill.)	3 846	0.9%	3 846	0.9%
RPK (Mill.)	2 638	-6.1%	2 638	-6.1%
Passenger load factor	68.6%	-5.1 p u	68.6%	-5.1 p u
No. of passengers (Mill.)	2.285	-4.8%	2.285	-4.8%

			Nov 17 vs. Nov 16
Geographical		Nov 17 vs. Nov 16
development. schedule	RPK	ASK	RPK	ASK
Intercontinental	-12.8%	-2.6%	-12.8%	-2.6%
Europe/Intrascandinavia	-1.5%	3.5%	-1.5%	3.5%
Domestic	-2.1%	1.3%	-2.1%	1.3%

Nov 17	Change	Nov-Nov 17	Change
			-20.2%
			-19.1%
			+1.3 p u
0.031	-18.7%	0.031	-18.7%
	120 115 96.3%	-20.2% -19.1% +1.3 p u	120 115 96.3%

SAS total traffic	Nov 17	Change	Nov-Nov 17	Change
ASK (Mill.)	3 966	0.1%	3 966	0.1%
RPK (Mill.)	2 753	-6.8%	2 753	-6.8%
Passenger load factor	69.4%	-5.1 p u	69.4%	-5.1 p u
No. of passengers (Mill.)	2.317	-5.1%	2.317	-5.1%

Preliminary yield and PASK	November 2017	Nominal change	FX adjusted change
Yield, SEK	1.00	+6%	+9%
PASK, SEK	0.68	-2%	+1%

	November 2017
Punctuality (arrival 15 min)	83.4%
Regularity	98.0%

SAS's definitions:

RPK – Revenue passenger kilometers ASK – Available passenger kilometers Load factor – RPK/ASK Yield – Passenger revenues/RPK (scheduled) PASK – Passenger revenues/ASK (scheduled)

Björn Tibell, Head of Investor Relations +46 70 997 1437 or bjorn.tibell@sas.se

This is information that SAS AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11:00 CET on 7 December 2017.

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