SAS — Earnings Release 2018

Feb 7, 2018

Scandinavian Airlines

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

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.

Product and news update

• Fritz Schur is stepping down as Chairman and as a member of the Board of SAS from the 2018 AGM.

• SAS published its 2016/2017 annual report.

• The Board has decided to redeem 70% of the outstanding preference shares in February 2018.

SAS scheduled traffic	Jan 18	Change	Nov-Jan 18	Change
ASK (Mill.)	3 439	0.3%	10 733	0.7%
RPK (Mill.)	2 198	-7.1%	7 210	-5.7%
Passenger load factor	63.9%	-5.1 p u	67.2%	-4.5 p u
No. of passengers (Mill.)	1.828	-5.3%	6.023	-5.5%

			Nov 17-Jan 18 vs. Nov
Geographical	Jan 18 vs. Jan 17			16 – Jan 17
development. schedule	RPK	ASK	RPK	ASK
Intercontinental	-11.3%	-2.1%	-10.0%	-1.2%
Europe/Intrascandinavia	-3.8%	2.2%	-1.9%	3.0%
Domestic	-4.2%	1.3%	-4.2%	-0.5%

SAS charter traffic	Jan 18	Change	Nov-Jan 18	Change
ASK (Mill.)	141	-22.3%	406	-18.2%
RPK (Mill.)	130	-21.1%	382	-17.1%
Passenger load factor	92.7%	+1.3 p u	94.2%	+1.3 p u
No. of passengers (Mill.)	0.047	-13.8%	0.118	-13.6%
SAS total traffic	Jan 18	Change	Nov-Jan 18	Change

ASK (Mill.)	3 580	-0.8%	11 139	-0.1%
RPK (Mill.)	2 329	-8.0%	7 592	-6.3%
Passenger load factor	65.1%	-5.1 p u	68.2%	-4.5 p u
No. of passengers (Mill.)	1.874	-5.5%	6.141	-5.7%

Preliminary yield and PASK	January 2017	Nominal change	FX adjusted change
Yield, SEK	0.93	+4%	+6%
PASK, SEK	0.60	-3%	-2%

January 2018
73.8%*
98.0%

* 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 February 2018.

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