SAS Monthly Traffic and Capacity Data - September 2001

Re: Monthly traffic and capacity data for September 2001 Please find attached traffic and capacity data for September 2001. The report was due to be released Monday October 8, at 11. a.m. CET, but as a result of the tragic accident in Milan this was postponed until today. We at SAS are deeply affected by the accident and in great sadness. Our thoughts go to all the people affected by this tragedy. Our main concern right now is to assist the families, relatives and friends of those affected. October 10, 2001 Yours sincerely, Scandinavian Airlines System SAS Group Management, SAS Corporate Communications, SAS Investor Relations, SAS Finance and all SAS employees 1. September in brief Passenger traffic (RPK) showed an overall decrease of 4,2% in September 2001 vs. September 2000 and number of passengers decreased by 3,2%. Overall capacity (ASK) increased by 6,8% and passenger load factor decreased by 7,3 p.u to 63,7%. · Business Class traffic was down 16,0% and Economy Class was up 1,5%. 2. Significant impact from September 11 event The tragic event on September 11 impacted the overall traffic development significantly in September, particularly in Business Class. Before the event Business Class was down in line with August, approximately 3%. After the event overall Business Class was down around 20%. The impact is severe on the routes to/ from the U.S east coast (New York/ Washington) but significantly less severe on the Seattle route and to some degree the Chicago routes. Between September 11 and September 14, SAS cancelled more than 60 flights to/ from the U.S.A as all airports were closed during that period. The effect on the Asian routes has been limited so far, as traffic to/ from Tokyo and Beijing developed well in September. Business Class in the European route area showed a negative trend also prior to September 11, but this trend worsened after the event. In particular Business Class traffic to/ from the U.K. was hit hard by the event. The Intrascandinavian and the domestic networks were also affected but to a lesser degree. Most European carriers have experienced a similar traffic development and it is definitely the most severe crisis for the airline industry since the Gulf War in 1991. The development has put additional pressure on passenger mix, passenger load factors and overall passenger yields and revenues. The development during September give no clear indications of an improving trend so far and the underlying trend in forward bookings is very difficult to interpret given the large uncertainties facing the world economies and the terror event's impact on air travel in general. As a result of the worsened traffic development SAS announced significant cutbacks in capacity on September 26, 2001. Overall capacity will be reduced by 12% and SAS also introduced other result improvement measures and price increases of 5% as from October 1, 2001 to offset the negative impact on network efficiency including increased security and insurance costs. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/10/20011010BIT00150/bit0001.DOC The full report http://www.waymaker.net/bitonline/2001/10/10/20011010BIT00150/bit0001.pdf The full report