SAS — Earnings Release 2018

Mar 7, 2018

Scandinavian Airlines

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

SAS traffic figures February 2018

• Scheduled traffic (RPK) decreased 2.1% and the capacity (ASK) was up 0.1%.
• The load factor decreased by 1.5 p.u. versus last year to 66.4%.
• Scheduled number of passengers amounted to 2 million in February.
• The preliminary currency adjusted yield was unchanged while the PASK decreased 3% in February 2018 vs. last year. The nominal yield decreased 2% and the PASK decreased 4% in February 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.

During the winter program 2017/2018, SAS has adjusted the production according to the seasonally lower demand. This, in combination with last year's 70 year's anniversary campaign, has resulted in lower traffic volumes and higher yield than last year. This trend is expected to continue during the winter program 2017/2018. Thereafter, the volumes and load factors are expected to be more in line with FY17.

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 February

SAS increased its scheduled capacity in February by 0.1% and the traffic decreased by 2.1%, resulting in a load factor of 66.4%, 1.5 p.u. lower than last year.

SAS's intercontinental capacity decreased by 3.3% and the traffic decreased 6.7%. The volumes were negatively affected by the Chinese New Year and the phase out of one aircraft compared to last year.

The traffic on SAS's European/Intrascandinavian routes increased by 1.9%. At the same time the capacity increased 3.3%. The traffic had a positive development on European leisure oriented routes where number of passengers increased by 10%.

On SAS's domestic routes, the capacity decreased by 0.3%, primarily due to reduced capacity on Swedish domestic routes. The domestic traffic was down 2.2%.

Product and news update

• SAS redeemed 4.9 million preference shares during February.

• At the annual Grand Travels Award in Sweden, SAS won the awards for Best Domestic Transport and Best Airline Europe.

• SAS will open a new route between Stockholm and Rhodes during the summer 2018.

SAS scheduled traffic	Feb 18	Change	Nov-Feb 18	Change
ASK (Mill.)	3 404	0.1%	14 137	0.6%
RPK (Mill.)	2 260	-2.1%	9 470	-4.8%
Passenger load factor	66.4%	-1.5 p u	67.0%	-3.8 p u
No. of passengers (Mill.)	1.970	-2.3%	7.993	-4.8%

			Nov 17-Feb 18 vs. Nov
Geographical	Feb 18 vs. Feb 17			16 – Feb 17
development. schedule	RPK	ASK	RPK	ASK
Intercontinental	-6.7%	-3.3%	-9.3%	-1.7%
Europe/Intrascandinavia	1.9%	3.3%	-1.0%	3.0%
Domestic	-2.2%	-0.3%	-3.7%	-0.4%

SAS charter traffic	Feb 18	Change	Nov-Feb 18	Change
ASK (Mill.)	151	-14.8%	557	-17.3%
RPK (Mill.)	143	-14.5%	525	-16.4%
Passenger load factor	94.5%	+0.3 p u	94.3%	+1.1 p u
No. of passengers (Mill.)	0.055	-7.4%	0.173	-11.7%

SAS total traffic	Feb 18	Change	Nov-Feb 18	Change
ASK (Mill.)	3 555	-0.6%	14 694	-0.3%
RPK (Mill.)	2 403	-2.9%	9 995	-5.5%
Passenger load factor	67.6%	-1.6 p u	68.0%	-3.8 p u
No. of passengers (Mill.)	2.024	-2.4%	8.165	-4.9%

Preliminary yield and PASK	February 2017	Nominal change	FX adjusted change
Yield, SEK	0.91	-2%	0%
PASK, SEK	0.61	-4%	-3%

	February 2018
Punctuality (arrival 15 min)	74.5%*
Regularity	97.8%

* SAS's punctuality was affected by challenging weather conditions in the Nordic region.

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 7 March 2018.

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