SAS — Earnings Release 2018

Apr 9, 2018

Scandinavian Airlines

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

SAS traffic figures March 2018

• Scheduled traffic (RPK) increased 4.5% while the capacity (ASK) decreased 0.3%.
• The load factor increased by 3.4 p.u. versus last year to 73.1%.
• Scheduled number of passengers amounted to 2.4 million in March.
• The preliminary currency adjusted yield decreased 3% while the PASK increased 2% in March 2018 vs. last year. The nominal yield decreased 3% and the PASK increased 2% in March 2018 vs. last year.

Market and SAS development

The capacity in the Scandinavian market has accelerated during the autumn and winter 2017/2018 in line with SAS's expectations. This trend is also expected to continue during the spring 2018.

Due to the different timing of Easter compared to last year, SAS adjusted its network to accommodate the customers' changing demand. This was well received and resulted in higher traffic volumes on international routes and generally higher load factors.

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 March

In line with SAS's increased seasonal adjustment during the winter program 2017/2018, SAS reduced the capacity in March by 0.3%. Despite this, the traffic increased by 4.5%, which resulted in an increased passenger load factor of 3.4 p.u. versus last year to 73.1%.

SAS's intercontinental capacity decreased by 1.9% as one aircraft has been phased out of traffic. The traffic grew during March by 5.4%. The growth was strongest on the USA routes, where the traffic grew by more than 6%.

The traffic on SAS's European/Intrascandinavian routes increased by 8.0%. At the same time the capacity increased by 4.8%. In response to the adjustments of the network around Easter, the number of passengers increased by more than 20% versus last year on the European leisure oriented routes.

On SAS's domestic routes, the capacity was reduced by 9.7%, as capacity was allocated to European routes during Easter. As a result, the traffic decreased on the domestic routes by 5.7%.

Product and news update

• In a survey conducted by Google, SAS mobile sites were ranked top among airline companies in the Nordic region.

• SAS customers can now bid on an upgrade to SAS Plus or SAS Business, including on flights booked using EuroBonus points.

• As part of the summer program that commenced at the end of March, SAS will open 27 new routes.

Mar 18	Change	Nov-Mar 18	Change
			0.4%
			-2.7%
			-2.2 p u
2.388	-2.6%	10.381	-4.3%
	4 112 3 007 73.1%	-0.3% 4.5% +3.4 p u	18 249 12 478 68.4%

			Nov 17-Mar 18 vs. Nov
Geographical		Mar 18 vs. Mar 17		16 – Mar 17
development. schedule	RPK	ASK	RPK	ASK
Intercontinental	5.4%	-1.9%	-6.3%	-1.7%
Europe/Intrascandinavia	8.0%	4.8%	1.2%	3.5%
Domestic	-5.7%	-9.7%	-4.2%	-2.6%

SAS charter traffic	Mar 18	Change	Nov-Mar 18	Change
ASK (Mill.)	182	2.9%	739	-13.1%
RPK (Mill.)	168	2.0%	693	-12.6%
Passenger load factor	92.5%	-0.8 p u	93.9%	+0.6 p u
No. of passengers (Mill.)	0.060	8.1%	0.233	-7.3%

SAS total traffic	Mar 18	Change	Nov-Mar 18	Change
ASK (Mill.)	4 293	-0.2%	18 988	-0.2%
RPK (Mill.)	3 175	4.4%	13 171	-3.3%
Passenger load factor	74.0%	+3.2 p u	69.4%	-2.2 p u
No. of passengers (Mill.)	2.449	-2.3%	10.614	-4.3%

Preliminary yield and PASK	March 2017	Nominal change	FX adjusted change
Yield, SEK	0.90	-3%	-3%
PASK, SEK	0.66	+2%	+2%

	March 2018
Punctuality (arrival 15 min)	74.3%*
Regularity	97.4%*

* SAS's punctuality and regularity continued to be affected by challenging weather conditions in the Nordic region in March.

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 9 April 2018.

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