SAS — Interim / Quarterly Report 2016

Jun 10, 2016

SAS Interim Report November 2015 - April 2016

SAS Interim Report November 2015 - April 2016

RISING PASSENGER NUMBERS IN A WEAK QUARTER

FEBRUARY 2016 - APRIL 2016

· Income before tax: MSEK 127 (355)

· Income before tax and nonrecurring items: MSEK -601 (-331)

· Revenue: MSEK 8,916 (9,403)

· Unit revenue (PASK) declined 11.5%[1]

· Unit cost (CASK) decreased 1.3%[2]

· EBIT margin: 2.7% (4.9%)

· Net income for the period: MSEK 171 (279)

· Earnings per common share: SEK 0.25 (0.58)

· The outlook for the full year 2015/2016 remains firm, see page 8.

NOVEMBER 2015 - APRIL 2016

· Income before tax: MSEK -182 (-481)

· Income before tax and nonrecurring items: MSEK -1,005 (-1,160)

· Revenue: MSEK 17,191 (17,774)

· Unit revenue (PASK) declined 10.8%[1]

· Unit cost (CASK) decreased 3.9%[2]

· EBIT margin: 0.3% (-1.1%)

· Net income for the period: MSEK -75 (-361)

· Earnings per common share: SEK -0.76 (-1.63)

[1] Currency adjusted.

[2] Currency adjusted and excluding jet fuel.

COMMENTS BY THE PRESIDENT AND CEO OF SAS:

"We close the book on a quarter that was unsatisfactory in terms of results.

However, it is pleasing to note that the commercial strategy with a focus on

frequent travelers is delivering results and increasing numbers of customers are

choosing to fly with SAS, which is also reflected in the positive cash flow.

Despite substantially reduced jetfuel costs, we reported weaker results than

last year. The weak results were primarily attributable to three factors:

increased price pressure, technical maintenance costs and negative currency

effects.

We are focusing on frequent travelers and are targeting our initiatives using

innovation and increased digitization to strengthen loyalty in this target

group. This has attracted 130,000 new EuroBonus members during the quarter and,

at the same time, our new corporate program SAS Credits has gained almost 5,000

new customers compared with last year. Our investment in new long-haul routes is

appreciated by our customers and, overall, the bookings status for the summer

looks stable. At the same time, we note that the European civil aviation

landscape is undergoing rapid change. The market trend toward main growth in the

leisure travel segment and an increasing price sensitivity with customers poses

challenges for profitability in the industry. At present, SAS is the only

airline that operates between Scandinavia and Europe where the flight crews are

exclusively subject to Scandinavian employment terms.

Given this background, we have to continue to change to thereby ensure long-term

competitiveness and a sustainable return for our shareholders," 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 10, 2016, at 8:00 a.m.