SAS — Earnings Release 2021

Sep 1, 2021

Q3 2021- CONTINUED HEADWINDS FROM THE PANDEMIC

Q3 2021- CONTINUED HEADWINDS FROM THE PANDEMIC

MAY 2021-JULY 2021

· Revenue: MSEK 3,982 (2,507)

· Income before tax (EBT): MSEK -1,358 (-2,071)

· Income before tax and items affecting comparability:

MSEK -1,237 (-784)

· Net income for the period: MSEK -1,355 (-2,365)

· Earnings per common share: SEK -0.19 (-6.18)

SIGNIFICANT EVENTS DURING THE QUARTER

· SAS arranged a credit line of SEK 3 billion

· Anko van der Werff joined as President and CEO

SIGNIFICANT EVENTS AFTER THE QUARTER

· SAS has signed an additional pre-delivery payments financing of c. USD 100

million, covering 10 x A320neo aircraft with deliveries into Q2 FY2023

· SAS has operated 22 flights on behalf of the Scandinavian authorities

contributing to evacuation operations from Afghanistan

NOVEMBER 2020-JULY 2021

· Revenue: MSEK 8,196 (17,478)

· Income before tax (EBT): MSEK -5,655 (-6,880)

· Income before tax and items affecting comparability:

MSEK -5,546 (-5,576)

· Net income for the period: MSEK -5,838 (-6,696)

· Earnings per common share: SEK -0.82 (-17.66)

COMMENTS BY THE CEO

We noted encouraging signs during the summer season with demand slowly

increasing. Vaccination rates are also rising, but significant challenges remain

ahead as new cases of the Delta variant are multiplying and delaying ramp-up.

The imposed travel restrictions remain in force and continue to adversely affect

demand for air travel.

QUARTER NEGATIVELY IMPACTED BY THE ONGOING PANDEMIC

Demand continued to gradually increase during the important summer season, and

we increased our capacity 94% compared with the second quarter. Passenger

numbers increased 144% compared with the last quarter and the load factor

reached 52%, up almost 23 percentage points in comparison with the earlier

quarter. However, the uncertainties surrounding the COVID-19 pandemic are far

from over. Efforts to transform SAS' entire business must continue to offset

lower demand with lower costs. Earnings before tax ended at negative SEK 1.4

billion, which is still an improvement of SEK 0.7 billion compared with last

year.

Total revenue increased 106% compared with the second quarter. Compared with

last year this is an improvement of approximately SEK 1.5 billion, but still 70%

below the third quarter of 2019, which was unaffected by COVID-19.

REDUCING COSTS AND MANAGING LIQUIDITY

SAS is celebrating 75 years of operations with a proven track record of

successfully adapting to changing market conditions necessitated once again due

to the pandemic. Cost reduction initiatives, such as reduced personnel expenses

and streamlined operational functions, continue to deliver and total operating

expenses were controlled during the quarter and landed at SEK 4.9 billion. We

also continue to develop our operational platforms to increase competitiveness

further.

The work to safeguard liquidity continues and at the end of the quarter the cash

position was SEK 4.4 billion, which corresponds to the liquidity position at the

end of the second quarter. Moreover, during the quarter a credit line was signed

with major shareholders, the Danish and Swedish governments, thereby making an

additional SEK 3.0 billion of liquidity available if necessary. The facility can

be utilized until the end of 2022 and ensures that SAS has a liquidity buffer

during the recovery phase following the COVID-19 pandemic. The facility

complements the ongoing cost reduction activities.

MAKING TRAVELING EASIER AND OPENING ROUTES

The imposed travel restrictions make traveling difficult, and SAS is doing

everything possible to facilitate a smooth travel experience for passengers. Our

digital tool, SAS Travel Ready Center, allows passengers to track updates to

travel restrictions and prepare their trip online, thus ensuring everything is

ready when they arrive at the airport. We are also offering more flexible ticket

rules and generous rebooking alternatives.

In parallel with adapting to a new market reality, we continue to open new

routes. SAS increases the flights between the Scandinavian capitals and

important destinations in its network to further improve connectivity for

travelers. Meanwhile, more of our new, fuel-efficient aircraft are planned to be

delivered during the year, making our fleet one of the most modern in Europe. We

also proudly flew Scandinavian athletes to the Olympic games in Tokyo during the

quarter.

LOOKING AHEAD

The recovery of the aviation industry depends greatly on the uncertain

development of the pandemic. We are expecting travel to increase gradually as

more and more people are vaccinated worldwide, but we are also aware that demand

has changed during the pandemic. SAS expects a greater number of leisure

travelers and even more intense competition in the future. In addition,

customers are booking their tickets closer to their travel dates, which means

that flexibility to ramp up and down, will be a success factor in the airline

industry going forward.

I am very happy to be part of SAS' future and I feel honored to assume the role

as President and CEO of Scandinavia's leading airline, which I take on with

great enthusiasm. These are of course difficult times, both for customers and

for employees, having to adjust to ever-changing rules and restrictions. In this

regard, I would like to recognize the hard work performed by my SAS colleagues,

to maintain our performance at a high level and to help customers as much as

possible.

Together with a strong team of dedicated colleagues, we are striving to become

the global leader in sustainable aviation, in parallel with navigating our way

through the post-pandemic recovery period. It will take time and a lot of hard

work, and we will need to make adjustments along the way, but with our great

team, strong brand and operational excellence, we will make it happen.

On behalf of all of us at SAS, we look forward to welcoming you on board our

flights!

Anko van der Werff,

President and CEO

Stockholm, September 1, 2021

This information is information that SAS AB is obliged to disclose pursuant to

the EU Market Abuse Regulation. The information was submitted by Louise

Bergström for publication on September 1, 2021 at 8:00 a.m. CET.