SAS — Earnings Release 2017

Sep 7, 2017

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

SAS traffic figures August 2017

• Scheduled traffic (RPK) increased 2.3% and the capacity (ASK) was up 6.4%.
• The load factor decreased by 3.2 p.u. versus last year to 78%.
• Scheduled number of passengers was flat and amounted to 2.5 million passengers in August
• The preliminary currency adjusted and nominal yield respective PASK increased 5% and 1% in August 2017 vs. last year.

Market development and capacity outlook

During August the demand continued to be robust in Scandinavia. Due to larger aircraft combined with higher yield, SAS's overall load factor declined versus last year in August.

At the same time as the demand is growing, the competition remains very intensive. After a summer with modest capacity growth in Scandinavia, the market capacity increase is expected to accelerate during the autumn and winter 2017.

In fiscal year 2016/2017, SAS's total capacity growth (ASK) will amount to 8%. In fiscal year 2017/2018, SAS has an indicative plan to increase capacity (ASK) by around 1–3%, primarily as a result of increased capacity on longer European routes and the fact that the Airbus A320neo has more seats than the aircraft being replaced.

SAS scheduled traffic development in August

SAS increased its scheduled capacity in August by 6.4% and the traffic grew by 2.3%, resulting in a load factor of 78%. This was 3.2 p.u. lower than last year.

The traffic on SAS's European/Intrascandinavian routes increased by 6.5%. This was driven by a 19% increase in traffic on leisure oriented routes in Europe.

SAS's intercontinental traffic decreased 1.9% and the capacity was up 4.7% versus last year. The added capacity relates to the new route to/from Miami.

On SAS's domestic routes, the capacity was increased by 2%, driven by the new route to the Faroe Islands. The traffic increased by 0.7%, resulting in a somewhat lower load factor mainly attributable to the Swedish domestic market.

Product and news update

• SAS will increase its focus at Aarhus airport from the next summer program.

SAS scheduled traffic	Aug 17	Change	Nov-Aug 17	Change
ASK (Mill.)	4 265	6.4%	39 818	8.6%
RPK (Mill.)	3 328	2.3%	29 951	10.8%
Passenger load factor	78.0%	-3.2 p u	75.2%	+1.5 p u
No. of passengers (Mill.)	2.454	-0.1%	23.458	4.7%

			Nov 16-Aug 17 vs. Nov
Geographical		Aug 17 vs. Aug 16		15-Aug 16
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	-1.9%	4.7%	14.2%	13.5%
Europe/Intrascandinavia	6.5%	9.2%	10.4%	6.9%
Domestic	0.7%	2.0%	4.2%	3.4%

SAS charter traffic	Aug 17	Change	Nov-Aug 17	Change
ASK (Mill.)	538	2.6%	3 132	7.6%
RPK (Mill.)	513	2.9%	2 968	9.1%
Passenger load factor	95.3%	+0.3 p u	94.8%	+1.3 p u
No. of passengers (Mill.)	0.202	3.1%	1.088	8.4%
SAS total traffic	Aug 17	Change	Nov-Aug 17	Change
ASK (Mill.)	4 803	6.0%	42 950	8.5%
RPK (Mill.)	3 842	2.3%	32 919	10.7%
Passenger load factor	80.0%	-2.8 p u	76.6%	+1.5 p u

No. of passengers (Mill.) 2.656 0.1% 24.546 4.9%

Preliminary yield and PASK	August 2017	Nominal change	FX adjusted change
Yield, SEK	0.86	+5%	+5%
PASK, SEK	0.67	+1%	+1%
			August 2017

Punctuality (arrival 15 min)	86.2%
Regularity	99.5%

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 September 2017.

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