SAS — Earnings Release 2018

May 11, 2018

SAS traffic figures - April 2018

SAS traffic figures - April 2018

. Scheduled number of passengers increased by 5.6% to 2.5 million in April.

. Scheduled traffic (RPK) decreased 2.2% while the capacity (ASK) increased

1.9%.

. The load factor decreased by 3.0 p.u. versus last year to 72.7%.

. The preliminary currency adjusted yield increased 5% and the PASK increased 1%

in April 2018 vs. last year. The nominal yield increased 7% and the nominal PASK

increased 2% in April 2018 vs. last year.

Market and SAS development

The capacity in the Scandinavian market has accelerated during the autumn and

winter 2017/2018. This trend is expected to continue during the spring/summer

Due to the different timing of the Easter holiday compared to last year, SAS

adjusted its network and increased the capacity on more business oriented routes

in April. This resulted in higher traffic volumes particularly on shorter routes

within Scandinavia and had a positive effect on the yield and PASK.

SAS development during Q2, FY18

The traffic and yield/PASK have developed according to SAS's expectations. SAS

continued to make greater seasonal production adjustments, which had a positive

effect on the yield/PASK. In parallel, the USD has increased by more than 10%

during the quarter versus the SEK. This will have a material impact on USD

denominated provisions relating to leased aircraft/engines, which will

negatively impact the Q2 result by more than SEK 0.2bn. At the same time the

efficiency program is being implemented. As previously announced, it is expected

to result in total restructuring costs of SEK 1bn. Of this about SEK 0.2bn will

be incurred during Q2.

In fiscal year 2017/2018, SAS plans to increase capacity (ASK) by around 1-3%,

driven by longer European routes and the fact that the Airbus A320neo has more

seats than the aircraft being replaced.

SAS scheduled traffic development in April

The number of passengers increased during April by 5.6% vs. last year in

response to strong growth in Scandinavia. At the same time, SAS increased the

capacity in April by 1.9% while the traffic decreased by 2.2% vs. last year.

This resulted in a lower passenger load factor of 3.0 p.u. vs. last year to

72.7%. The lower load factor in April is driven by the timing of Easter. On the

other hand, the load factor for March and April combined was marginally higher

vs. last year.

SAS's intercontinental capacity decreased by 3.3% vs. last year as one aircraft

has been phased out of traffic. The traffic fell 5.6% vs. last year, mainly due

to lower volumes on the USA routes.

The traffic on SAS's European/Intrascandinavian routes decreased by 2.8% vs.

last year, while the capacity increased by 1.7%. The traffic volumes were

smaller on leisure routes, but higher on business oriented routes given the

network adjustments due to the timing of Easter.

On SAS's domestic routes, the traffic increased 9.2% in response to the adjusted

network.