SAS Group Interim Report January-March 2006

May 4, 2006 08:00

First quarter of 2006 in brief

• Operating revenue for the period amounted to MSEK 14,467 (13,016), an increase of 11.1%. Adjusted for currency effects, operating revenue rose by 6.1%.

• Number of passengers in the first quarter increased by 12.2% to 8.5 million.

• The SAS Group’s cabin factor was up 5.4 pts. to 66.6% in the first quarter of 2006.

• Income before depreciation and leasing costs for aircraft (EBITDAR) amounted to MSEK 219 (222) for the period.

• Income before capital gains and nonrecurring items remained virtually unchanged, amounting to MSEK ‑1,319 (‑1,312). Despite continued cost savings and improved cabin factors in Scandinavian Airlines Businesses, earnings did not improve, primarily because of poorer results in Subsidiary & Affiliated Airlines and Airline Support Businesses.

• Scandinavian Airlines Businesses’ income before capital gains and nonrecurring items improved by MSEK 175 to MSEK –813. Earnings for the first quarter of 2006 were negatively impacted by the dispute with the pilots in January in the amount of approximately MSEK 250.

• Income after financial items amounted to MSEK –1,387 (–1,290).

• Income after tax for the period was MSEK –1,064 (–971).

• CFROI for the 12-month period April 2005-March 2006 was 13% (10%).

• Earnings per share for the SAS Group for the first quarter was SEK ‑6.29 (‑5.86). Equity per share was SEK 64.54 (70.63).

• Currency-adjusted total unit cost adjusted for higher fuel prices rose 3.0% for Scandinavian Airlines Businesses in the period January-March 2006.

• Cost savings corresponding to SEK 2.5 billion are currently being implemented. So far, 44% of these measures have been put into effect.

All reports are available in English and Swedish and can be ordered from SAS, SE-195 87 Stockholm, telephone +46 8 797 00 00, fax +46 8 797 51 10. The reports can be accessed and ordered via the Internet: www.sasgroup.net

The SAS Group’s monthly traffic data are normally published on the fifth business day of the following month. A financial calendar may be found at: www.sasgroup.net

Direct questions to: SAS Group Investor Relations: Vice President Sture Stølen +46 8 797 14 51, e-mail: investor.relations@sas.se