SAS — Earnings Release 2017

Jul 7, 2017

SAS traffic figures June 2017

SAS traffic figures June 2017

. Scheduled traffic (RPK) increased 6.2% and the capacity (ASK) was up 7.1%.

. The load factor decreased by 0.7 p.u. versus last year to 80.8%.

. Scheduled number of passengers increased by 3.4% to 2.7 million passengers in

June.

. The preliminary currency adjusted yield was unchanged and the PASK was down 1%

in June 2017 vs. last year. The nominal yield increased 3% and the nominal PASK

increased 2% vs. last year.

Market development

Although the demand is growing, the operating environment is challenging, with

the yield at historically low levels and intensive competition. In addition, if

an aviation tax would be introduced in Sweden it would add further pressure to

the industry and reduce the accessibility to Sweden without any positive effects

on the environment.

During June, the demand to, from and within Scandinavia continued to develop in

line with previous months with stable traffic growth across SAS's geographical

regions.

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 will replace. The number of flights is expected to increase by about

1%.

SAS scheduled traffic development in June

SAS increased its scheduled capacity in June by 7.1% and the traffic grew by

6.2%, resulting in a load factor of 80.8%, 0.7 p.u. lower than last year. This

was primary due to a somewhat lower load factor on the intercontinental routes.

SAS's intercontinental traffic increased 4.2% and the capacity was up 7.0%. The

growth is driven by a year-on-year affect from the added Miami route compared to

last year. Within the existing network, the development was strongest on Asian

routes.

The traffic on SAS's European/Intrascandinavian routes increased by 7.6%. This

was driven by a more than 20% increase on leisure oriented routes.

On SAS's domestic routes, the capacity was increased by 6.6% and the traffic was

up by 7.4%. The growth was particularly high on Swedish and Danish domestic

routes due to industrial actions last year in Sweden and the new Danish domestic

route to Faroe Islands. Also, the development was positive on Norwegian domestic

routes.