SAS Group Traffic Figures for May

The SAS Group transported a total of 2,7 million passengers in May
2003 vs 2,9 million in 2002, a decrease of 7,8%. Total traffic (RPK) decreased by 4,8%. Overall group passenger load factor decreased by 3,1 p.u to 61,9%
for May 2003 vs. 2002.
Market trends and yield development:
The traffic development in May was affected by weak economies and
generally weak demand for air travel.
Passenger load factor to/ from North America has improved and forward
bookings for summer season are improving, but from a low level. Traffic
in Spanair and Braathens developed well, up 9,4% and 16,5% respectively
in May.
Indications of passenger yield development in May show pressure on
yields for Scandinavian Airlines as a result of negative mix, campaigns
and new market initiatives. Yield (unit revenues) for March and April
(reported with one month delay) 2003 was down 12% vs. March/ April 2002..
It must be noted that the yield is also significantly affected by more
capacity on intercontinental routes with lower yields. Yields on the
European routes were down 12% in March/ April, partly affected by the
introduction of the new low fare initiative Snowflake.
The overall yield development in March/ April is in line with the
figures reported for the previous months when adjusted for the Easter
effects and new product initiatives. Forceful cost measures are
initiated to offset the negative development in passenger volumes and
yield. Since the end of the Iraq war, booking has recovered particularly
to/ from the U.S., but from low levels. Due to the situation with
continued weak economies and the general uncertainties, the outlook
remains cautious.