SAS Interim Report Jan-Sept 2000

THE SAS GROUP www.scandinavian.net January - September 2000 * The SAS Group's income before taxes was MSEK 1,060 (601). Income for the third quarter amounted to MSEK 328 (105). * Income excluding capital gains amounted to MSEK 780 (-9) for the nine- month period and MSEK 337 (-72) in the third quarter. * Passenger traffic (RPK) increased by 7.6%. Traffic in Business Class rose 7.0%. * Increased fuel costs had a negative impact on earnings of MSEK 1,091 compared with the same period in the previous year. The business improvement program is progressing according to plan which led to a 3.2% reduction in the unit cost, excluding the higher fuel costs. * Cash flow from operations amounted to MSEK 1,728 (1,149). * Earnings per share amounted to SEK 4.93 (3.20) for SAS Danmark A/S, SEK 4.67 (2.98) for SAS Norge ASA, and SEK 4.95 (3.19) for SAS Sverige AB. * SAS's parent companies report the following income after taxes: SAS Danmark A/S MDKK 206(126) SAS Norge ASA MNOK 213(132) SAS Sverige AB MSEK 349(225) * The Board adheres to its previous forecast for the full year 2000 of income before taxes, excluding capital gains, of approximately MSEK 1,000. This interim report has not been reviewed by the Company's auditors. The complete report can be accessed on www.scandinavian.net IMPORTANT EVENTS IN THE LAST THREE QUARTERS FIRST QUARTER 2000 * SAS launched a WAP service for ticket reservations and information via mobile telephones. * SAS was ranked best domestic airline in Norway and received the "Grand Travel Award." * SAS EuroBonus won the "Freddie Award" for the fourth consecutive year. * SAS decided to buy 12 Airbus A321s and options for a total of SEK 4.5 billion. These aircraft meet high standards as regards low fuel consumption and noise levels and raise SAS's transport capacity to/from several major European cities and between the three Scandinavian capitals. * SAS Cargo, Lufthansa Cargo and Singapore Airlines intensified their partnership plans in the freight sector. * SAS, British Midland and Lufthansa concluded a joint venture agreement regarding European traffic to/from London Heathrow and Manchester. TM * Star Alliance was broadened to incorporate two more members, Singapore Airlines and Austrian Airlines Group. * SAS signed an agreement with Sabre, the world leader in advanced IT solutions for the travel and transport industry, regarding wider distribution of SAS's products and services. SECOND QUARTER 2000 * SAS tested Digital TV in interactive communication with customers. * British Midland and Mexicana Airlines became new members of the Star TM Alliance . * SAS launched timetable information via SMS. * SAS International Hotels (SIH) sold the Radisson SAS Scandinavia Hotel property in Oslo. THIRD QUARTER 2000 * In cooperation with twelve other airlines, SAS set up the airline industry's largest Internet-based marketplace for business-to-business commerce, Aeroxchange. TM * The members of the Star Alliance launched StarNet, a sophisticated IT solution that links the 15 airlines' computer systems with each other, which will benefit integration of the traffic systems. * SIH concluded an agreement to operate the Malmaison hotels and acquired the Malmaison brand together with its partner. IMPORTANT EVENTS AFTER SEPTEMBER 30, 2000 * SAS, Amadeus and Netcom launched a new Internet-based travel marketplace with the aim of achieving a leading position in Scandinavia. * In October, SIH sold the Radisson SAS Düsseldorf Hotel property for MSEK 300, corresponding to its book value. The hotel will continue to be operated under a long-term management agreement. * SAS's winter traffic program represents international expansion. * The three Scandinavian governments have jointly announced their intention to reorganize SAS's share structure to one share in a holding company. Stockholm, November 9, 2000 SCANDINAVIAN AIRLINES SYSTEM Jan Stenberg President and CEO ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/11/09/20001109BIT00750/bit0001.doc The full report http://www.bit.se/bitonline/2000/11/09/20001109BIT00750/bit0002.pdf The full report

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