SAS — Earnings Release 2018

Aug 9, 2018

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

SAS traffic figures July 2018

• Scheduled number of passengers increased by 2.2% to 2.6 million, a record for the month of July.
• Compared to last year:
• Scheduled traffic (RPK) and capacity (ASK) increased by 1.9% and 3.0%, respectively.
• Passenger load factor decreased by 0.9 p.p. to 85.6%.
• Nominal yield and PASK increased by 7% and 6%, respectively.
• Currency adjusted yield and PASK increased by 2% and 1%, respectively.

Market and Capacity Development

The capacity growth in the Scandinavian market has accelerated during the spring and summer of 2018. The higher capacity growth is expected to continue during the remainder of 2018.

In line with the very high demand for leisure travel during the summer holiday season, SAS, as well as increasing capacity overall, shifted its capacity toward more leisure oriented routes in July. This resulted in higher traffic volumes on leisure oriented routes to/from southern Europe and had a positive effect on the yield and PASK.

SAS development during Q3, FY18

The traffic development during Q3 FY18 has been in line with SAS's expectations and guidance. However, the yield/PASK development has been better than anticipated. Due to operational challenges, SAS has cancelled more flights during the quarter than normal, which will lead to higher irregularity costs. At the same time, the USD has continued to stay at a high level, which will affect SAS operating expenditure negatively.

Scheduled Traffic Development

In July the number of passengers increased by 2.2% vs. last year. SAS increased the scheduled capacity by 3.0% and the traffic increased by 1.9% vs. last year, resulting in a 0.9 p.p. decrease in the load factor.

The capacity on SAS's intercontinental routes was reduced by 3.5% vs. last year, as one aircraft has been phased out of traffic. Despite this, the traffic only decreased by 1.1% vs. last year. The development continued to be particularly positive on the routes to/from the United States.

The traffic on SAS's European/Intrascandinavian routes increased by 4.0% vs. last year. The growth was strongest on the European routes to/from Sweden and Norway.

The traffic on SAS's domestic routes increased by 0.8%, while the capacity was up 1.3%. The development was positive on the Norwegian and Swedish domestic routes, while the volumes decreased within Denmark due to lower capacity.

In Other News

• SAS' high-speed WiFi is now installed on 32 aircraft
• In late June, the Norwegian government sold its 9.9% shareholding in SAS AB

SAS scheduled traffic	Jul 18	Change1	Nov-Jul 18	Change1
ASK (Mill.)	4 831	3.0%	35 967	1.2%
RPK (Mill.)	4 133	1.9%	26 425	-0.7%
Passenger load factor	85.6%	-0.9 p.p	73.5%	-1.4 p.p
No. of passengers (Mill.)	2.587	2.2%	20.898	-0.5%
				Nov 17-Jul 18 vs. Nov
Geographical		Jul 18 vs. Jul 17		16 – Jul 17
development. schedule	RPK	ASK	RPK	ASK
Intercontinental	-1.1%	-3.5%	-4.0%	-2.3%
Europe/Intrascandinavia Domestic	4.0% 0.8%	7.4% 1.3%	2.2% -1.2%	4.2% 0.4%

SAS charter traffic	Jul 18	Change1	Nov-Jul 18	Change1
ASK (Mill.)	688	-7.2%	2 429	-6.4%
RPK (Mill.)	657	-8.9%	2 262	-7.8%
Passenger load factor	95.5%	-1.8 p.p	93.2%	-1.5 p.p
No. of passengers (Mill.)	0.255	-9.7%	0.839	-5.4%

SAS total traffic	Jul 18	Change1	Nov-Jul 18	Change1
ASK (Mill.)	5 519	1.6%	38 396	0.7%
RPK (Mill.)	4 790	0.2%	28 687	-1.3%
Passenger load factor	86.8%	-1.2 p.p	74.7%	-1.5 p.p
No. of passengers (Mill.)	2.842	1.0%	21.737	-0.7%

¹ Change compared to same period in previous year.

p.p. = percentage points

Preliminary yield and PASK	July 2018	Nominal change	FX adjusted change
Yield, SEK	0.85	+7%	+2%
PASK, SEK	0.72	+6%	+1%
			July 2018
Punctuality (arrival 15 min)			68.0%
Regularity			97.8%

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 9 August 2018.

_____________________________________________________________________________________________________________