SAS Group Interim Report January-June 2012

SAS Group January - June 2012 revenue was MSEK 20,983, i.e. almost 2 % higher than during the same period in 2011. The number of passengers increased by 551,000 (4 %). Net income for the period was MSEK -409 and the cost for jet fuel increased MSEK 1,116.

Important event during the period was SAS Annual General Meeting held on April 19, where SAS resolved that the SAS Group fiscal year would be changed to the period November 1 - October 31, instead of the calendar year as it is now. The Meeting also resolved that no dividend would be paid to shareholders for the 2011 fiscal year.

"The measures in 4Excellence are now generating results and the effects are expected to increase from the second half of 2012. In combination, the uncertain economic trend, jet-fuel prices, exchange rates and intense competitive pressure entail that SAS is not presenting a profitability forecast for the full-year 2012. Still we anticipate passenger growth of 5-7% in the market in 2012. The objective for 2012 is also to maintain a top position in terms of punctuality in Europe, while continuing to improve the customer satisfaction rate", pointed out Rickard Gustafson, SAS Group President and CEO.

SAS had recently signed an agreement to lease three A320s and a total of 60 new aircraft will be joining our fleet over the next few years. Within two years, all MD80 and B737 Classic aircraft will be phased out and replaced with modern A320/B737NG aircraft. SAS also look forward to introducing the most efficient aircraft in the market, Airbus A320neo, into our fleet. As the fleet is rejuvenated, we can expect lower fuel costs, reduced maintenance costs and lower CO2 emissions.

During the first half of 2012, free tea and coffee was reintroduced for all service classes, in-flight WiFi was introduced, and such time-saving solutions as SMART PASS and Fast Track are available for our travellers. The results of these features led to further improvements in SAS customer satisfaction.

In 2012 SAS will open 38 new routes.