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. ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: The full report

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