SAS Group Interim Report January-September 2006

Favorable cabin factor and stronger yield result in improved earnings for third quarter

• Operating revenue for the nine-month period amounted to MSEK 50,418 (45,600), an increase of 10.6%. For the third quarter, operating revenue amounted to MSEK 18,035 (16,567), an increase of 8.9%.

• Number of passengers rose by 7.2% to 29 million during the nine-month period and by 4.4% to 10.1 million during the third quarter, while the cabin factor increased by 1.1 percentage points to 76.3%.

• Nonrecurring items totaling MSEK 442 (180) were charged to results, of which MSEK 82 (102) pertains to the third quarter.

• Income before capital gains and nonrecurring items amounted to MSEK 544 (-114) for the period, an improvement of MSEK 658. Income for the third quarter totaled MSEK 969 (619).

• Net income for the nine-month period amounted to MSEK 93 (57) and MSEK 604 (529) for the third quarter.

• CFROI for the twelve-month period October 2005-September 2006 was 13% (12%).

• Earnings per share for the period amounted to SEK 0.09 (0.18) and SEK 3.40 (3.03) for the third quarter. Equity per share amounted to SEK 69.51 (74.36).

• Currency-adjusted total unit cost, adjusted for higher fuel prices, declined by 2.1% for SAS Scandinavian Airlines during the period July-September 2006. The increase for the period January-September was 0.5%. During the period January-September, fuel costs, adjusted for currency and volume, increased by SEK 2 billion.

• Cost savings corresponding to SEK 2.5 billion are currently being implemented. To date, 68% of these savings have been put into effect.

• A stock-exchange listing of the Rezidor Hotel Group is being prepared and is expected to be completed before the end of 2006, with a reservation for market conditions and final approval by the SAS Board of Directors.

• The Board of Directors of the SAS Group appointed Mats Jansson as new President and CEO. Mats Jansson will assume this position on January 1, 2007.

• "The earnings trend is positive, but the strong economy is a significant contributory factor. The result is far from the Group's return requirement and, accordingly, it is necessary to continue focusing full energy on cost-cutting measures," says Gunnar Reitan, Acting President and CEO.

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