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.