SAS — Earnings Release 2017

Feb 7, 2017

SAS traffic figures - January 2017

SAS traffic figures - January 2017

. Scheduled traffic (RPK) increased 20.5% and the capacity (ASK) was up 11.3%.

. The load factor improved by 5.3 p.u. versus last year to 69.0%.

. SAS carried 1.9 million scheduled passengers in January, up 9.8% vs. last

year.

. The preliminary currency adjusted yield and PASK were down 11% and 4% in

January 2017. The nominal yield was down 6% while the nominal PASK was up 2%.

Market development

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

with the yield at historically low levels. One driver for the declining yield is

the introduced aviation tax in Norway. In addition, jet fuel prices have

increased versus last year combined with an unfavorable USD development versus

the SEK, which will have a significant negative impact on SAS's earnings during

the first quarter of the fiscal year 2016/2017.

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

The growth will be greatest on the intercontinental routes and on the European

leisure routes. The increase will primarily be driven by a full-year effect from

the new intercontinental routes that commenced during 2015/2016 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 2%.

SAS scheduled traffic development in January

SAS increased its scheduled capacity in January by 11.3% and the traffic grew by

20.5%. The overall load factor was up 5.3 p.u. versus last year to 69.0%. The

load factor improved in all geographical areas with strongest developments on

SAS's intercontinental routes and international routes within Europe.

SAS intercontinental traffic increased 33.1% and the capacity was up 22.4%. The

growth was driven by the new routes to/from Los Angeles and Miami as well as

positive development on existing Asian routes.

The traffic on the European/Intrascandinavian routes increased by 14.9%. The

growth was in particular strong on leisure oriented routes.

On domestic routes, the capacity was increased by 5.4% and the traffic was up by

7.4%.