SAS Group improves Q3 earnings

Continued favorable cabin factor and stronger yield have resulted in improved
earnings for third quarter for the SAS Group.Key figures from the SAS Group’s Interim Report include:

á  Income before capital gains and nonrecurring items amounted to MSEK
969 during the third quarter of 2006, which is MSEK 350 higher than the
corresponding period in 2005.
á  Unit cost fell during the third quarter 2006 by 2.1% adjusted for
currency and fuel price effects.
á  The Group’s total revenue increased by 8.9% to MSEK 18,035.

“In most of the Group’s markets, passenger growth was between 5 and 15%,
which resulted in improved cabin factors and stronger yield. The highly
favorable economic conditions in combination with new business models was
the most important contribution to this development. There are still no
signs of recession in the market, but uncertainty remains about the
strength in the market growth going forward and the trend for jet fuel

“The earnings trend is positive, but the strong economy is a significant
contributory factor. The result is far from the Group’s return requirement,
and accordingly, it is necessary to continue focusing full energy on
cost-cutting measures,” says Gunnar Reitan, Acting President and CEO of the
SAS Group.