SAS Group traffic figures - July 2004

The SAS Group Traffic figures
July 2004

Traffic continues to improve

· Total passenger traffic (RPK) increased by 9,2% in July 2004 vs 2003.
· The SAS Group transported 2,7million passengers in July 2004 vs 2,5
million in 2003, an increase of 4,7%.
· Overall group passenger load factor improved by 1,1 p.u to 71,7%
for July 2004 vs. 2003.
· Scandinavian Airlines yield for June was down 7,4%.
· Braathens showed record load factor of 73,5%
· Spanair showed strong growth of 17,8% on Spanish domestic routes
with gained market shares

Market trends and yield development
Group total traffic volumes continued to develop positively with a
traffic growth of 9,2% that also resulted in improved passenger load
factor in a market characterized by fierce competition. The dramatic
yield fall experienced in April and May stabilized in June also as a
result of the new measures implemented including a fuel charge and other
yield optimization. Yields for Scandinavian Airlines in June was down
7,4% vs 2003. Yields for July will be reported next month, but
indications show a continued reduced pressure compared with June.

In general, all airlines in the group showed improved growth and
passenger load factors. Particularly strong is the development on
European, intercontinental and intrascandinavian routes. In July
Intrascandinavian traffic grew with 6,4% and cabin factor improved with
2,1 p.u. for the SAS Group in a market characterized by improving demand
but large overcapacity.

Spanair’s traffic increased in July by 11,9% with improved load factor.
Braathens’ traffic increased 13,9% in July in combination with record
load factor of 73,5%.

During 2nd Quarter 2004 Scandinavian Airlines experienced yield
reductions in a magnitude that has not been experienced before. Actions
such as fuel charge, selective price adjustments and active yield
management are already taking effect and yield indications for
Scandinavian Airlines for July shows further improvement compared with
June. Improvements in general demand and good traffic growth can be
noted. The outlook for the yield is more positive, but due to the
situation with continued overcapacity and the competitive situation with
continued potential price pressure, the overall outlook still remains
cautious.

Scandinavian Airlines
· Scandinavian Airlines traffic (RPK) increased by 6,5% in July 2004
compared with 2003.
· Scandinavian Airlines passenger load factor decreased by 0,5 p.u.
to 74,0%

Demand on the long haul routes continued to be strong especially on the
North Atlantic routes.

Traffic on the European routes was up 9,8%. Snowflake showed a traffic
increase of 34% and had a load factor of appr. 80%.

The production disturbances in Copenhagen during July had very limited
effect on production or traffic. The number of flights to/ from Denmark
increased by 12% and ASK increased by 11%. Intrascandinavian traffic
developed well and traffic was up 8,0%. Domestic traffic in Denmark had
a strong development and increased 14,5%. Domestic traffic decreased in
both Norway and Sweden as an effect of stricter seasonal capacity
adjustments.

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