SAS

Earnings Release • May 30, 2024

Q2 2024: Growing number of passengers and strong ticket sales but currency brings headwinds

Q2 2024: Growing number of passengers and strong ticket sales but currency brings headwinds

SAS concludes another busy quarter with an increased number of passengers,

strong ticket sales and new milestones in our restructuring proceedings. I am

also pleased to note a significant improvement in operational performance

throughout the second quarter with strong regularity and punctuality figures.

FEBRUARY 2024 - APRIL 2024

· Revenue: MSEK 9,994 (8,955)

· Operating income (EBIT): MSEK -1,521 (-986)

· Income before tax (EBT): MSEK -3,070 (-1,414)

· Income before tax and items affecting comparability: MSEK -3,060 (-1,561)

· Net income for the period: MSEK -2,904 (-1,525)

· Earnings per common share: SEK -0.40 (-0.21)

NOVEMBER 2023 - APRIL 2024

· Revenue: MSEK 18,919 (16,851)

· Operating income (EBIT): MSEK -2,687 (-3,620)

· Income before tax (EBT): MSEK -4,138 (-3,863)

· Income before tax and items affecting comparability: MSEK -4,090 (-4,012)

· Net income for the period: MSEK -4,357 (-4,234)

· Earnings per common share: SEK -0.60 (-0.58)

SIGNIFICANT EVENTS DURING THE QUARTER

· On February 5, SAS filed a second amended Chapter 11 Plan and a related

disclosure statement with the US court.

· On March 19, the US Court approved SAS' Chapter 11 plan.

· On March 27, the listed parent company of the SAS Group, SAS AB, applied for

company reorganization (Sw. företagsrekonstruktion) in Sweden. SAS' operations

and flight schedule will not be affected and SAS will continue to serve its

customers in the ordinary course throughout this process.

· On April 29, SAS and SkyTeam signed an Alliance Adherence Agreement

concluding that SAS will join SkyTeam on September 1, 2024.

SIGNIFICANT EVENTS AFTER THE QUARTER

· On May 21, SAS and Apollo signed a new 3-year agreement worth SEK 4.5

billion, meaning that SAS remains Apollo's major charter operations partner in

Scandinavia from the summer of 2025 through the summer of 2027.

OUTLOOK

· SAS intends to complete the restructuring proceedings in Sweden and in the

US, and fulfill all remaining conditions for the transaction, as soon as

possible. SAS aims for this to occur during the summer of 2024, but this

timetable may change.

· The interim report includes financial projections on page 9.

We are now entering the summer season with over 130 destinations in more than 40

countries in Europe, North America and Asia. In May, SAS also signed a new 3

-year agreement with Apollo worth SEK 4.5 billion, meaning that SAS remains

Apollo's major charter operations partner in Scandinavia from the summer of 2025

through the summer of 2027. We have started preparing for the upcoming winter

season. We see an increasing number of Europeans traveling to Northern

Scandinavia during the winter season and we are expanding our network with new

direct routes to Tromsø, Kiruna, Rovaniemi and Scandinavian Mountains Airport

Sälen-Trysil. Additionally, SAS is expanding frequencies to sunny winter

destinations, to the US and to European ski destinations.

The number of passengers traveling with SAS during the first half year increased

to 10.6 million, up 7.3 percent compared with the same period last year. The

increase in passenger demand led to a year-on-year increase of 12 percent in our

total operating revenue, which landed at SEK 18.9 billion for the first half

year. Ticket sales were strong during the first half year and we had a solid

operating cash flow in the business. Cost savings remain a key priority across

the business and we are making progress in reaching our targeted cost savings in

the SAS FORWARD plan. The operating income (EBIT) landed on SEK -2.7 billion for

the first half year, an improvement of SEK 933 million compared to the same

period last year. Income before tax (EBT) fell to SEK -4.1 billion, but adjusted

for currency effects EBT improved with almost SEK 600 million.

SAS recently announced that we will join SkyTeam on September 1, 2024. We are

very excited to now have reached this milestone in SAS' alliance transition

journey. SAS' customers and EuroBonus members will be able to enjoy new

destinations and benefits as part of the SkyTeam alliance family, marking the

start of an exciting future for customers, partners and employees alike.

SAS aims to be a driving force in sustainable aviation, and we are incredibly

proud that we were once again voted the most sustainable company in the aviation

industry by Swedish and Danish consumers, according to the extensive brand

survey Sustainable Brand Index (SBI). The SBI is Europe's largest independent

brand study that measures consumers' perception of brands based on perceived

performance in terms of the 17 UN Sustainable Development Goals.

We are making steady progress in our restructuring proceedings and in reaching

our overall targets in the SAS FORWARD plan. During the quarter, the US Court

confirmed SAS' Chapter 11 plan and we also filed for a company reorganization of

SAS AB in Sweden. This means that we have reached a major milestone in our

transformation plan. We look forward to emerging as a competitive and

financially stronger airline with a stable equity structure. We still have work

to do but this marks a powerful step towards realizing SAS' potential to remain

at the forefront of the airline industry for years to come.

As always, we look forward to welcoming our customers on board.

Anko van der Werff

President & CEO

Stockholm, May 30, 2024

For further information, please contact:

SAS press office, +46 8 797 29 44

Investor relations, +46 709 977 070

SAS, Scandinavia's leading airline, with main hubs in Copenhagen, Oslo and

Stockholm, flies to destinations in Europe, USA and Asia. Spurred by a

Scandinavian heritage and sustainability values, SAS aims to be the driving

force in sustainable aviation and in the transition toward net zero emissions.

We are continuously reducing our carbon emissions through using more sustainable

aviation fuel, investing in new fuel-efficient aircraft and technology

innovation together with partners - thereby contributing towards the industry

target of net zero CO2 emissions by 2050. In addition to flight operations, SAS

offers ground handling services, technical maintenance, and air cargo services.

Learn more at https://www.sasgroup.net