SAS — Earnings Release 2017

Aug 8, 2017

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

• 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.

Product and news update

• SAS has increased the size and upgraded its lounge in New York with new Scandinavian design and material.
• SAS has on its website introduced a one-stop-shop, offering SAS flights and hotels packages.

SAS scheduled traffic	Jul 17	Change	Nov-Jul 17	Change
ASK (Mill.)	4 691	8.8%	35 553	8.9%
RPK (Mill.)	4 058	6.7%	26 622	12.0%
Passenger load factor	86.5%	-1.7 p u	74.9%	+2.1 p u
No. of passengers (Mill.)	2.532	2.2%	21.004	5.3%

			Nov 16-Jul 17 vs. Nov
Geographical	Jul 17 vs. Jul 16			15-Jul 16
development, schedule	RPK	ASK	RPK	ASK
Intercontinental	6.0%	8.9%	16.7%	14.6%
Europe/Intrascandinavia	8.3%	9.8%	11.0%	6.6%
Domestic	1.6%	3.3%	4.7%	3.6%

SAS charter traffic	Jul 17	Change	Nov-Jul 17	Change
ASK (Mill.)	741	3.5%	2 594	8.7%
RPK (Mill.)	721	4.9%	2 455	10.5%
Passenger load factor	97.3%	+1.3 p u	94.6%	+1.5 p u
No. of passengers (Mill.)	0.282	6.1%	0.886	9.7%
SAS total traffic	Jul 17	Change	Nov-Jul 17	Change
ASK (Mill.)	5 432	8.0%	38 147	8.9%
RPK (Mill.)	4 778	6.4%	29 078	11.9%
Passenger load factor	88.0%	-1.3 p u	76.2%	+2.1 p u

No. of passengers (Mill.) 2.814 2.5% 21.890 5.5%

Preliminary yield and PASK	July 2017	Nominal change	FX adjusted change
Yield, SEK	0.79	+2%	+1%
PASK, SEK	0.69	0%	-1%
			July 2017
Punctuality (arrival 15 min)			79.4%

Regularity 99.6%

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 8 August 2017.

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