SAS — Earnings Release 2018

Jul 6, 2018

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

SAS traffic figures June 2018

• Scheduled number of passengers increased by 2.6% to a record high of 2.7 million in June.
• Compared to last year:
• Scheduled traffic (RPK) and capacity (ASK) increased by 2.8% and 1.5%, respectively.
• Passenger load factor increased by 1 p.p. to 81.8%.
• Nominal yield and PASK increased by 5% and 6%, respectively.
• Currency adjusted yield and PASK increased by 2% and 3%, respectively.

Market and Capacity Development

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

In line with the seasonally increasing demand, SAS grew its capacity on both business and more leisure oriented routes in June. Towards the end of June, SAS predominantly adapted its network to the seasonally very high demand for leisure travel. The capacity increase was well absorbed with higher load factors compared to last year. The underlying yield and PASK also improved versus last year.

In fiscal year 2017/2018, SAS plans to increase capacity (ASK) by around 1–3%, driven by longer European routes and additional seats on the new Airbus A320neo.

Scheduled Traffic Development

The number of passengers increased by 2.6% vs. June last year. SAS increased the scheduled capacity by 1.5% and the traffic increased by 2.8% vs. last year, resulting in a 1 p.p. improvement in the load factor.

The capacity on SAS' intercontinental routes was reduced by 1.7% vs. last year, as one aircraft has been phased out of traffic. Despite this, the traffic increased by 2.2% vs. last year. The development was particularly positive on the routes to/from the United States.

The traffic on SAS' European/Intrascandinavian routes increased by 4.9% vs. last year. The growth was strongest on the European routes to/from Sweden and Denmark.

The traffic on SAS' domestic routes decreased by 1.5%, while the capacity was down 0.1%. The lower traffic in relation to capacity is mainly explained by a slightly lower load factor in the Norwegian domestic market.

In Other News

• SAS will move the Hong Kong route from to Stockholm to Copenhagen, resulting in a more attractive timetable from October 2018.
• SAS and Preem have signed a letter of intent to secure future production of bio jet-fuel. SAS' ambition is to only use bio jet-fuel on domestic routes by 2030.
• SAS and Apollo extended their agreement regarding charter flights for the summer season 2019. The value of the contract is about SEK 1bn.

SAS scheduled traffic	Jun 18	Change1	Nov-Jun 18	Change1
ASK (Mill.)	4 255	1.5%	31 136	0.9%
RPK (Mill.)	3 481	2.8%	22 292	-1.2%
Passenger load factor	81.8%	+1.0 p.p	71.6%	-1.5 p.p.
No. of passengers (Mill.)	2.738	2.6%	18.311	-0.9%
				Nov 17-Jun 18 vs. Nov
Geographical development. schedule	RPK	Jun 18 vs. Jun 17 ASK	RPK	16 – Jun 17 ASK
Intercontinental	2.2%	-1.7%	-4.4%	-2.2%

SAS charter traffic	Jun 18	Change1	Nov-Jun 18	Change1
ASK (Mill.)	587	11.6%	1 741	-6.1%
RPK (Mill.)	537	8.9%	1 606	-7.4%
Passenger load factor	91.6%	-2.3 p.p	92.2%	-1.4 p.p
No. of passengers (Mill.)	0.210	9.1%	0.584	-3.3%

Domestic -1.5% -0.1% -1.4% 0.3%

SAS total traffic	Jun 18	Change1	Nov-Jun 18	Change1
ASK (Mill.)	4 841	2.6%	32 877	0.5%
RPK (Mill.)	4 018	3.6%	23 897	-1.7%
Passenger load factor	83.0%	+0.8 p u	72.7%	-1.6 p u
No. of passengers (Mill.)	2.948	3.0%	18.895	-1.0%

¹ Change compared to same period in previous year.

p.p. = percentage points

Preliminary yield and PASK	June 2018	Nominal change	FX adjusted change
Yield, SEK	1.01	+5%	+2%
PASK, SEK	0.83	+6%	+3%
			June 2018
Punctuality (arrival 15 min)			73.5%
Regularity			97.6%

Definitions:

RPK – Revenue passenger kilometers ASK – Available passenger kilometers Load factor – RPK/ASK Yield – Passenger revenues/RPK (scheduled) PASK – Passenger revenues/ASK (scheduled)

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 6 July 2018.

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