The SAS Group Traffic figures - May 2004

The SAS Group Traffic figures May 2004

Traffic continues to improve
· Total passenger traffic (RPK) increased by 15,8% in May 2004 vs 2003.
· The SAS Group transported a total of 2,9 million passengers in May
2004 vs 2,7 million in 2003, an increase of 9,1%.
· Overall group passenger load factor improved by 3,0 p.u to 64,9%
for May 2004 vs. 2003.
· Scandinavian Airlines currency adjusted yield for April was down
with 19,1% partly due to a technical effect as the proportion of the
intercontinental traffic has increased vs. 2003.

Market trends and yield development
May group total traffic volumes developed positively with a traffic
growth of 15,8% and improved passenger load factor. It must be noted
that last years numbers were weak due to SARS and the Iraq situation,
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 April was down 19,1% vs 2003. The yield is partly affected
by a technical effect due to a larger proportion of intercontinental
traffic that has an effect of appr. 6-7 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 May will be reported next month, but indications show a
continued pressure similar to April also with similar technical effects
for the reason mentioned above. In general, growth has improved
significantly on European and intercontinental routes. In May
Intrascandinavian and domestic traffic improved in a market
characterized by improving demand but large overcapacity.
Spanair’s traffic increased in May by 22,4% with improved load factor.
Braathens’ traffic increased 12,9% in May.

Yield indications for Scandinavian Airlines in May show a continued
pressure similar to April. For the full year 2004 an underlying yield
reduction of 9-10 % vs 2003 is expected. As announced in May an extra
fuel surcharge was introduced due to the sustained high jet fuel prices.
The surcharge will impact yields to some degree in June and 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 but due to the situation with uncertainties about yields and
continued overcapacity, the outlook remains cautious.

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