The SAS Group Traffic figures - June 2004

The SAS Group Traffic figures
June 2004

Traffic continues to improve

· Total passenger traffic (RPK) increased by 11,2% in June 2004 vs
2003.
· The SAS Group transported a total of 3,2 million passengers in June
2004 vs 2,9 million in 2003, an increase of 8,7%.
· Overall group passenger load factor improved by 0,5 p.u to 69,8%
for June 2004 vs. 2003.
· Scandinavian Airlines currency adjusted yield for May was down with
22,5% as was communicated in the end of June.

Market trends and yield development

Group total traffic volumes continued to develop positively with a
traffic growth of 11,2% and improved passenger load factor. It must be
noted that last years numbers were weak due to SARS, but even adjusted
for this the traffic volumes for the group developed well. On the
contrary, yields are still weak and yields for Scandinavian Airlines for
May was down 22,5% vs 2003. The yield is partly affected by a technical
effect due to a larger proportion of intercontinental traffic that has
an effect of approx. 5-6 p.u. The reduced underlying yield is explained
by continued negative mix, price reductions and high availability of low
fare tickets in the marketplace. Yields for June will be reported next
month, but indications show a significantly reduced pressure compared to
May, but also with less technical effects for the reasons mentioned
above.

In general, growth has improved on European, intercontinental and
intrascandinavian routes. In June Intrascandinavian traffic grew with
6,5% and cabin factor improved with 6,5 p.u. for the SAS Group in a
market characterized by improving demand but large overcapacity.
Spanair’s traffic increased in June by 20,0% with improved load factor.
Braathens’ traffic increased 12,2% in June.

Yield indications for Scandinavian Airlines in June show a continued
pressure but significantly less than for May as also the technical
effects mentioned above will be smaller. In addition the jet fuel
surcharge will start to give effect and is expected to have full effect
as from July with approx 4-5%.

The restructuring plan “Turnaround 2005”, is proceeding according to
plan in order to secure a sustained profitability level in a lower yield
environment. Improvements in general demand and good traffic growth can
be noted. The outlook for the yield has improved but due to the
situation with continued overcapacity and price pressure, the overall
outlook still remains cautious.

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