SAS — Earnings Release 2018

Feb 7, 2018

SAS traffic figures - January 2018

SAS traffic figures - January 2018

. Scheduled traffic (RPK) decreased 7.1% and the capacity (ASK) was up 0.3%.

. The load factor decreased by 5.1 p.u. versus last year to 63.9%.

. Scheduled number of passengers amounted to 1.8 million in January.

. The preliminary currency adjusted yield increased 6% while the PASK decreased

2% in January 2018 vs. last year. The nominal yield increased 4% and the PASK

decreased 3% in January 2018 vs. last year.

Market development

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

winter 2017/2018 in line with SAS's expectations.

SAS development during Q1, FY18

The traffic development during Q1 FY18 has been in line with SAS's expectations

and guidance. The yield/PASK development has, however, been better than

anticipated. As part of the efforts to balance the production and cost base to

the seasonal demand, SAS has decreased the number of flights by 5% during Q1.

Due to last year's anniversary campaign and the phase in of larger aircraft,

SAS's overall load factor and traffic volumes have been lower than last year,

but on par with FY16. 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 January

SAS increased its scheduled capacity in January by 0.3% and the traffic

decreased by 7.1%, resulting in a load factor of 63.9%, 5.1 p.u. lower than last

year. This is driven by last year's campaign and larger aircraft. The load

factor, passenger volumes and traffic (RPK) are all higher than in January 2016.

SAS's intercontinental capacity decreased by 2.1% and the traffic decreased

11.3%. During the next months, the capacity on SAS's long haul routes is planned

to decrease slightly as one wet leased aircraft was phased out in August 2017.

The traffic on SAS's European/Intrascandinavian routes decreased by 3.8%. At the

same time the capacity increased 2.2%. The traffic had a positive development on

European routes to/from Sweden where it grew by 3%.

On SAS's domestic routes, the capacity increased by 1.3%, which mostly is driven

by the new route to the Faroe Islands. The traffic decreased 4.2%, with the

largest reduction on Swedish domestic routes.