SAS — Earnings Release 2018

Jun 8, 2018

Scandinavian Airlines

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

SAS traffic figures May 2018

• Scheduled number of passengers increased by 3.8% to 2.7 million in May.
• Scheduled traffic (RPK) increased 1.6% and the capacity (ASK) increased 1.5%.
• The load factor increased to 74.1%, up 0.1 p.p. versus last year.
• Compared to last year, the preliminary currency adjusted yield and PASK were unchanged, while the nominal yield and PASK increased 4%.

Market and Capacity Development

The capacity in the Scandinavian market has accelerated during the winter 2017/2018 and spring 2018. This accelerated capacity growth is expected to continue during the summer/autumn 2018.

In line with the seasonally increasing demand, SAS grew its capacity on both business and more leisure oriented routes in May. The capacity increase was well absorbed, with underlying yield and PASK unchanged compared to 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

During May the number of passengers increased by 3.8% vs. last year. SAS increased the scheduled capacity by 1.5% and the traffic increased by 1.6% vs. last year, resulting in a marginally stronger passenger load factor.

The capacity on SAS' intercontinental routes was reduced by 3.0% vs. last year, as one aircraft has been phased out of traffic. This is the primary reason for the 3.4% decrease in intercontinental traffic vs. last year.

The traffic on SAS' European/Intrascandinavian routes increased by 5.5% vs. last year. The growth was strongest on the European routes to/from Denmark and Norway.

The capacity on SAS' domestic routes increased by 1.3%, contributing to a positive growth in traffic by 1.9%. The growth was strongest on Danish domestic routes.

In Other News

• SAS became the first Nordic airline to launch high speed WiFi on its Scandinavian and European flights.
• SAS announced that it will add half a million of seats to its winter program. For the first time, SAS will fly 200 routes during the winter program.

SAS scheduled traffic	May 18	Change1	Nov-May 18	Change1
ASK (Mill.)	4 332	1.5%	26 881	0.8%
RPK (Mill.)	3 208	1.6%	18 811	-1.9%
Passenger load factor	74.1%	+0.1 p.p.	70.0%	-1.9 p.p.
No. of passengers (Mill.)	2.669	3.8%	15.572	-1.5%

	May 18 vs. May 17		Nov 17-May 18 vs. Nov
Geographical development. schedule	RPK	ASK	RPK	16 – May 17 ASK
Intercontinental	-3.0%	-3.4%	-5.6%	-2.2%
Europe/Intrascandinavia	5.5%	5.5%	1.2%	3.5%
Domestic	1.9%	1.3%	-1.4%	0.4%

SAS charter traffic	May 18	Change1	Nov-May 18	Change1
ASK (Mill.)	328	3.2%	1 154	-13.0%
RPK (Mill.)	295	-1.4%	1 068	-13.9%
Passenger load factor	90.0%	-4.2 p.p.	92.5%	-0.9 p.p.
No. of passengers (Mill.)	0.114	0.2%	0.374	-9.1%

SAS total traffic	May 18	Change1	Nov-May 18	Change1
ASK (Mill.)	4 659	1.6%	28 036	0.1%
RPK (Mill.)	3 503	1.3%	19 879	-2.7%
Passenger load factor	75.2%	-0.2 p.p.	70.9%	-2.0 p.p.
No. of passengers (Mill.)	2.784	3.6%	15.947	-1.7%

¹ Change compared to the figures of the respective periods in the previous year. p.p. = percentage points

Preliminary yield and PASK	May 2018	Nominal change	FX adjusted change
Yield, SEK	0.96	+4%	0%
PASK, SEK	0.71	+4%	0%
			May 2018
Punctuality (arrival 15 min)			83.1%
Regularity			98.3%

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 June 2018.

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