SAS — Earnings Release 2017

Aug 8, 2017

SAS traffic figures July 2017

SAS traffic figures July 2017

. Scheduled traffic (RPK) increased 6.7% and the capacity (ASK) was up 8.8%.

. The load factor decreased by 1.7 p.u. versus last year to 86.5%.

. Scheduled number of passengers increased by 2.2% to 2.5 million passengers in

July, the highest number of passengers that SAS has transported in July.

. The preliminary currency adjusted yield increased 1% and the PASK decreased 1%

in July 2017 vs. last year. The nominal yield increased 2% and the nominal PASK

was unchanged vs. last year.

Market development

Despite growing demand and a somewhat more stable yield development, the

yield/PASK is at historically low levels and the competition continues to be

intensive. However, during May-July the change in the underlying yield/PASK has

been slightly positive when adjusting for the increased stage length as well as

the impact from larger aircraft. The longer stage length and larger aircraft

also reduce the unit cost.

During July, the demand developed in line with previous months with stable

traffic growth across SAS's geographical regions. At the same time the USD has

gradually decreased versus the SEK, which will have a positive effect on SAS's

earnings.

In fiscal year 2016/2017, SAS's total capacity growth (ASK) will amount to 6-8%.

The growth will primarily be driven by a full-year effect from the new

intercontinental routes that commenced during 2015/2016, increased production on

European leisure routes and the fact that the Airbus A320neo is larger than the

aircraft it replaces. The number of flights is expected to increase by about 1%.

SAS scheduled traffic development in July

SAS increased its scheduled capacity in July by 8.8% and the traffic grew by

6.7%, resulting in a load factor of 86.5%. This is 1.7 p.u. lower than last

year, mainly due to tighter yield management.

SAS's intercontinental traffic increased 6.0% and the capacity was up 8.9%

versus last year.

The traffic on SAS's European/Intrascandinavian routes increased by 8.3%. This

was driven by a 15% increase in traffic on leisure oriented routes in Europe and

increased traffic to/from Sweden.

On SAS's domestic routes, the capacity was increased by 3.3%, driven by the new

route to the Faroe Islands. The traffic increased by 1.6%, resulting in a

somewhat lower load factor mainly attributable to the Swedish domestic market.