SAS — Earnings Release 2017

Jan 10, 2018

SAS traffic figures - December 2017

SAS traffic figures - December 2017

. Scheduled traffic (RPK) decreased 3.8% and the capacity (ASK) was up 1%.

. The load factor decreased by 3.8 p.u. versus last year to 68.8%.

. Scheduled number of passengers amounted to 1.9 million in December.

. The preliminary currency adjusted yield increased 5% and the PASK was flat in

December 2017 vs. last year. The nominal yield increased 2% and the PASK

decreased 3% in December 2017 vs. last year.

Market development and capacity outlook

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

line with SAS's expectations. This development is expected to continue during

the winter program 2017/2018. SAS's overall load factor and traffic volumes

declined versus last year at the same time as the yield improved. The trend is

expected to continue during the winter program 2017/2018. This is explained by

last year's 70 year's anniversary campaign, that resulted in record high volumes

and weak yield, combined with the phase in of larger aircraft in 2017. The

traffic volumes and load factor are, however, higher than in December 2015.

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 December

SAS increased its scheduled capacity in December by 1.0% and the traffic

decreased by 3.8%, resulting in a load factor of 68.8%, 3.4 p.u. lower than last

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

SAS's intercontinental capacity was increased by 1.1% and the traffic decreased

5.8%. During the next months, the capacity on SAS's long haul routes is planned

to decrease slightly as one wet leased Boeing 737 was phased out in August 2017.

The traffic on SAS's European/Intrascandinavian routes decreased by 0.6%. At the

same time the capacity was increased 3.0%. The traffic grew on leisure oriented

routes in Europe by around 7%.

On SAS's domestic routes, the capacity was decreased by 4.3% as SAS to a greater

degree adjusted the capacity for the lower seasonal demand. The traffic was down

by 6.7%, with the largest reduction on Swedish domestic routes.