SAS — Interim / Quarterly Report 2016

Sep 8, 2016

SAS Interim Report November 2015 - July 2016

SAS Interim Report November 2015 - July 2016

CLEAR STRATEGY GENERATES HIGHER REVENUE

MAY 2016 - JULY 2016

· Income before tax: MSEK 1,036 (1,031)

· Income before tax and nonrecurring items: MSEK 1,003 (996)

· Revenue: MSEK 11,133 (10,973)

· Unit revenue (PASK) declined 3.5%[1]

· Unit cost (CASK) decreased 0.3%[2]

· EBIT margin: 10.4% (10.4%)

· Net income for the period: MSEK 805 (800)

· Earnings per common share: SEK 2.17 (2.16)

· The outlook for the full year 2015/2016 is retained, see page 8.

NOVEMBER 2015 - JULY 2016

· Income before tax: MSEK 854 (550)

· Income before tax and nonrecurring items: MSEK -2 (-164)

· Revenue: MSEK 28,324 (28,747)

· Unit revenue (PASK) declined 8.1%[1]

· Unit cost (CASK) decreased 2.6%[2]

· EBIT margin: 4.3% (3.3%)

· Net income for the period: MSEK 730 (439)

· Earnings per common share: SEK 1.42 (0.54)

[1] Currency adjusted.

[2] Currency adjusted and excluding jet fuel.

COMMENTS BY THE PRESIDENT AND CEO OF SAS:

"Income before tax amounted to MSEK 1,036 for SAS in the third quarter.

Excluding the effects of the June strike in Sweden, earnings were up slightly

more than MSEK 140 year-on-year, which was mainly attributable to increased

revenue from more travelers choosing SAS. Earnings were also positively impacted

by lower jet-fuel costs, which were largely counteracted by negative currency

effects and higher technical maintenance costs.

The quarter's results showed that our strategy of focusing on frequent travelers

is working. During the quarter, 226,000 more travelers flew with us and the

number of EuroBonus members rose by 120,000 to a total of 4.5 million. Members

have also increased their travel by 5.5%, which is more than SAS's other

customers and this demonstrates increased customer loyalty. Our expanded

offering and enhanced products to summer destinations have resulted in more

people also choosing SAS for weekend and leisure travel.

Competition remains intense, which has led to continued pressure on yields and,

at the same time, uncertainty in the macro environment has increased. Together

with future financing needs for aircraft and maturing loans, this underlines the

importance for us to continue to work intensively with streamlining operations,

strengthening our financial position and leveraging our customer investments.

Ahead of the autumn, we are looking forward to launching the new Miami route and

to welcoming our travelers on board our first brand new and fuel-efficient

Airbus A320neo," says Rickard Gustafson, SAS President and CEO.

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

the EU Market Abuse Regulation. The information was submitted for publication,

through the agency of the contact person set out above, at 8.00 a.m. CET on

September 8, 2016.