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. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/07/07/20040707BIT00120/wkr0001.pdf The full report