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The SAS Group Traffic figures July 2010

August 6, 2010 11:00

SAS Group’s July 2010 traffic figures 

· SAS Group’s traffic (RPK) increased by 1.1% during July while seat capacity (ASK) was unchanged vs same period in 2009.
· This resulted in an all time high record load factor of 84.7%, in July 2010
· SAS Group carried 2.0 million passengers in July, up  2.6% vs. same period in 2009.  

Group market trends and yield development
The currency adjusted yield for Scandinavian Airlines in June 2010 was down by 9.0%, slightly more than indicated last month. RASK was as a result down by 7.2%. The yield is affected by a mathematical routemix effect from the relatively strong performance on intercontinental routes versus short haul routes, one off adjustments of the frequent flyer liability but also due to overcapacity and price pressure in some markets. The yield outlook for July is uncertain and indicates yield (change) in line with May. 

The market continues to be unpredictable but a recovery has been noted on intercontinental routes and selected European routes, however the uncertainty still remains in particular on the yield development going forward. SAS has as a result initiated yield enhancing measures to offset the negative yield development. The implementation of the Core SAS strategy including cost saving initiatives is on track. 

SAS Group Product and network update 

· Due to improved demand Scandinavian Airlines will increase frequencies on intrascandinavian routes from September.
· SAS Group will increase frequencies on the Swedish domestic route Stockholm-Kalmar through Blue1 in September.

Scandinavian Airlines 
•  1.7 million passengers were carried during July, up 2.0%.
• The traffic increased 0.2% and capacity was down 0.9%
• The load factor was up by 0.9 p.u. to a record 85.4%. 

The intercontinental traffic grew by 3.8% in July despite a capacity reduction of 3.9%. The load factor reached over 95%. Business Class on intercontinental routes increased by more than 30%. On European routes, traffic was down 3.5%, affected by closure and capacity reductions of some leisure destinations in line with the Core SAS strategy. Traffic on the intrascandinavian routes continued to perform well and increased by 7.9% with load factors at 75%. Danish domestic traffic increased 8.5%. Norwegian domestic traffic decreased by 5.3%, negatively affected by over capacity and fierce competition. Swedish domestic traffic increased by 15.5% and capacity was up 11.8%. 

Widerøe and Blue1’s traffic development

Widerøe carried 168,000 passengers in July up 1.6% vs last year. The capacity increased 3.2% as Widerøe has taken over former SAS Fokker 50 routes and increased some frequencies. The additional capacity was not entirely met  by increased demand and  the load factor fell by 1.2 p.u. to 66.1%

Blue1’s traffic increased by 16.8% during July. Particularly European routes developed strongly with additional frequencies to/from London and new routes to Berlin and Brussels. Also routes within Scandinavia grew albeit increased competition. Total number of passengers increased by 13.4% and the load factor reached 85.3%, up 2.7 p.u.For further information Please contact VP,Head of SAS Group Investor Relations Sture Stølen
+ 46 8 797 1451 sture.stolen@sas.se (sture.stolen@sas.se)  Homepage: www.sasgroup.net (https://www.sasgroup.net/)

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