SAS — Interim / Quarterly Report 2014

Jun 18, 2014

Interim Report November 2013-April 2014

Interim Report November 2013-April 2014

SAS takes decisive action in a challenging market

February-April 2014 [1]

· Revenue: MSEK 8,472 (9,933)

· Unit revenue (PASK) declined 8.9%

· Unit cost (CASK) decreased 5.3% [2]

· EBIT margin: -7.8% (-1.1%)

· Income before tax: MSEK -1,078 (-329)

· Net income for the period: MSEK -800 (-405)

· Earnings per common share: SEK -2.72 (-1.23)

· Additional revenue and cost measures have been initiated. The cost

measures are expected to have an earnings impact of SEK 1 billion in the

2014/2015 fiscal year. In addition, longer-term initiatives will be

finalized in autumn 2014

· The outlook for the full year 2013/2014 is presented on page 7

[1] Comparative figures for the corresponding year-earlier period

include Widerøe.

[2] Adjusted for jet fuel and amended pension terms totaling MSEK 450,

in the Feb-Apr 2013 period.

The SAS Group has applied the amended standard for pension reporting,

IAS 19 - Employee Benefits since November 1, 2013. As part of

implementing the amended accounting standard, reported figures for the

preceding fiscal year (2012/2013) have been restated to enable

comparison with the 2013/2014 fiscal year. The effects of the

restatement of the SAS financial statements for 2012/2013 can be found

at www.sasgroup.net, under Investor Relations/Reports and

Presentations/Interim reports.

Comments by the President and CEO of SAS:

"Continued intense competition and pressure on prices in the

Scandinavian air travel market reduced margins more than expected and

SAS posted an EBT of MSEK -1,078 for the second quarter. We are deeply

disappointed with the results, which were substantially below our own

expectations. However, it is worth noting that, in April, we posted a

record high load factor and the number of passengers flying with SAS

increased slightly more than 300,000 during the quarter. We are also

continuing to reduce the unit cost, which decreased 5.3% over the

quarter. Member numbers have increased substantially since the

introduction of our revamped EuroBonus program and we are continuing to

develop the program for our customers' benefit.

However, the market trend shows that it is crucial for SAS to act more

aggressively and, accordingly, we are now intensifying revenue and cost

measures. The additional cost measures will enhance operational

efficiency and a further improvement in earnings of SEK 1 billion is

expected in the 2014/2015 fiscal year. With the cost measures being

implemented, we see an opportunity to further strengthen the offering to

Scandinavia's frequent travelers through initiatives including expanding

the SAS intercontinental offering. We are planning new direct routes

from Oslo and Stockholm to North America and Asia, starting in autumn

2015," says Rickard Gustafson, SAS President and CEO.

SAS discloses this information pursuant to the Swedish Securities Market

Act and/or the Swedish Financial Instruments Trading Act. The

information was provided for publication on June 18, 2014, at 8:00 a.m.