SAS — Earnings Release 2017

Oct 6, 2017

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

SAS traffic figures September 2017

• Scheduled traffic (RPK) increased 0.8% and the capacity (ASK) was up 2.7%.
• The load factor decreased by 1.4 p.u. versus last year to 76.2%.
• Scheduled number of passengers amounted to 2.6 million in September
• The preliminary currency adjusted yield increased 1% and the PASK was down 1% in September 2017 vs. last year. The nominal yield was unchanged and the PASK was down 2% in September 2017 vs. last year.

Market development and capacity outlook

After a robust development of the seasonal demand during the summer, demand has shifted back to more business purpose traveling in September. In line with previous months, SAS's overall load factor declined versus last year, primarily due to larger aircraft.

The competition remains very intensive. After a summer with modest capacity growth in Scandinavia, the market capacity growth is expected to accelerate during the autumn and winter 2017.

In fiscal year 2017/2018, SAS has an indicative plan 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 September

SAS increased its scheduled capacity in September by 2.7% and the traffic grew by 0.8%, resulting in a load factor of 76.2%. This was 1.4 p.u. lower than last year. Compared with previous months the capacity growth declined as SAS now has reached full year effect from previous long haul expansion and the growth on the European routes is lower.

SAS's intercontinental traffic increased 2.6% and the capacity was up 3.4% versus last year. Going forward, the capacity on long haul routes will decrease slightly as one wet leased Boeing 737 has been phased out.

The traffic on SAS's European/Intrascandinavian routes increased by 0.6%. This was driven by a 10% increase in traffic on leisure oriented routes in Europe.

On SAS's domestic routes, the capacity was increased by 3.4%, driven by higher capacity on Swedish and Danish domestic routes. The traffic declined by 3.2%, primarily as an effect from the industrial action in Norway in the beginning of the month.

Product and news update

• SAS announced that it from April 2018 will start to fly between Stockholm and Örnsköldsvik.
• During September, SAS signed final three-year agreements with the Danish and the Norwegian pilot unions. SAS has thereby reached 3-year agreements with all pilot associations in the three Scandinavian countries.

SAS scheduled traffic	Sep 17	Change	Nov-Sep 17	Change
ASK (Mill.)	4 130	2.7%	43 948	8.0%
RPK (Mill.)	3 147	0.8%	33 098	9.8%
Passenger load factor	76.2%	-1.4 p u	75.3%	+1.2 p u
No. of passengers (Mill.)	2.565	-3.7%	26.023	3.8%

			Nov 16-Sep 17 vs. Nov
Geographical	Sep 17 vs. Sep 16			15-Sep 16
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	2.6%	3.4%	13.0%	12.5%
Europe/Intrascandinavia	0.6%	2.9%	9.4%	6.5%
Domestic	-3.2%	0.6%	3.5%	3.1%

SAS charter traffic	Sep 17	Change	Nov-Sep 17	Change
ASK (Mill.)	513	14.6%	3 645	8.6%
RPK (Mill.)	494	16.7%	3 463	10.1%
Passenger load factor	96.4%	+1.7 p u	95.0%	+1.4 p u
No. of passengers (Mill.)	0.195	17.2%	1.284	9.7%

SAS total traffic	Sep 17	Change	Nov-Sep 17	Change
ASK (Mill.)	4 643	3.9%	47 593	8.1%
RPK (Mill.)	3 642	2.7%	36 561	9.8%
Passenger load factor	78.4%	-0.9 p u	76.8%	+1.2 p u
No. of passengers (Mill.)	2.760	-2.5%	27.307	4.1%

Preliminary yield and PASK	September 2017	Nominal change	FX adjusted change
Yield, SEK	0.94	0%	+1%
PASK, SEK	0.72	-2%	-1%

September 2017

Punctuality (arrival 15 min)	85.3%
Regularity	98.3%

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

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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 6 October 2017.