SAS Group Year-end report January-December 2004

2004 in brief• Operating revenue for the full year amounted to MSEK 58,073 (57,754), an increase of 0.6%. Operating revenue for the fourth quarter amounted to MSEK 14,940 (13,824), an increase of 8.1%. For comparable units and currency effects, operating revenue for the full year increased by 3.3% or MSEK 1,892.

• Number of passengers increased by 4.4% to 32.4 million.

• Income before depreciation and leasing costs for aircraft (EBITDAR) amounted to MSEK 4,383 (3,761) for the full year and MSEK 1,181 (814) for the fourth quarter.

• Income before capital gains and nonrecurring items amounted to MSEK –1,813 ( -2,221) for the full year and MSEK –344 ( -415) for the fourth quarter.

• Income after financial items amounted to MSEK –1,945 (-1,470) and MSEK -419 ( -245) for the fourth quarter.

• Income after tax was MSEK -1,872 (-1,415) and MSEK -636 (-581) for the fourth quarter.

• CFROI for the 12-month period January-December 2004 was 9% (7%).

• Earnings per share for SAS Group amounted to SEK -11.38 (-8.60) for the full year and SEK -3.87 ( -3.53) for the fourth quarter. Equity per share was SEK 67.84 (79.84).

• Currency-adjusted total unit cost decreased by 11% for Scandinavian Airlines Businesses during the period January-December 2004 and 6% for the fourth quarter of 2004. Adjusted for increased jet fuel prices, the unit cost decreased by 14% and 10% respectively. Since the fourth quarter of 2002, the unit cost has fallen by 26% adjusted for currency effects and increased fuel prices.

• The Board of Directors proposes to the Annual General Meeting that no dividend be paid to SAS AB’s shareholders for the 2004 fiscal year.

• Continued major uncertainty over development in the airline industry gives reason to be cautious, but subject to unchanged yields, favorable traffic development and no significant changes in the business environment, adopted business plans indicate positive earnings for 2005.