The SAS Group Traffic figures November 2004

Traffic growth somewhat slower but yields better
• Total passenger traffic (RPK) increased by 2,9% in November 2004 vs 2003.
• The SAS Group transported 2,5 million passengers in November 2004, an increase of 1,6%.
• Overall group passenger load factor decreased by 1,0 p.u to 58,0% for November 2004 vs. 2003.
• Yields improved further

Group market trends and yield development
Group total traffic volumes increased in November with a traffic (RPK) growth of 2,9%. Capacity (ASK) increased by 4,7% resulting in a reduced load factor of 1,0 p.u.

Passenger load factor improved in all airlines partly except for Scandinavian Airlines. SAS Braathens continued to develop well. Demand is still weak on Swedish domestic routes and on certain European routes.

Yields for Scandinavian Airlines in October were down by 6% vs. 2003. Yields for November will be reported next month, but indications show significant improvement compared with October partly due to last years 20-30% price reductions that were carried out in November. In addition full impact from the fuel charges is expected in November.

Intercontinental routes showed slightly weaker growth compared with previous months.
SAS Group European routes continued to improve with a 0,5 p.u. increase in passenger load factor. The development has improved since September/ October.
The SAS Group Norwegian domestic traffic increased by 5,2% and the load factor increased by a strong 2,9 p.u.
Spanair’s traffic was affected negatively by the 6 days pilot industrial action but increased in November by 13,5% and load factor improved with 1,5 p.u.. Swedish domestic routes continued to be weak due to severe overcapacity on many routes.

Group traffic growth slowed somewhat in November. On the other hand yields has improved further. In October yields for Scandinavian Airlines fell by 6% vs 2003. Yield indication for Scandinavian Airlines for November shows continued stabilization and yield reductions less than the recent months.
In summary, yields are expected to develop better for the last two months of the year, but due to the situation with weaker growth and continued overcapacity and the competitive situation with continued potential price pressure, the overall outlook remains cautious.
Due to the overcapacity situation and weak traffic development on many routes the SAS Group has initiated “Capacity & Utilization Focus” targeting a reduced capacity of 4% and improved aircraft utilization by approx 4% in 2005.