Following negotiations on Wednesday between the Swedish Air Transport
Industry Employers` Association and the Swedish Transport Workers`
Union, it was not possible to reach an agreement on the 2003 contract
for flight technicians, mechanics, baggage handlers and packers.

The Transport Workers` Union has made demands that are unacceptable for
the SAS Group. In 2003, the SAS Group experienced the worst year in its
history. Preliminary figures indicate a loss of some SEK 2 billion.
Against this background, it is impossible for SAS management to accept
an agreement with the union that would further worsen the Group`s
already critical financial position.

A conflict has become unavoidable, since the Transport Workers` Union
has demanded exclusive right for flight technicians to perform a certain
task that can be performed by mechanics at lower cost.

Damage to SAS severe:
With its strike measures, the Transport Workers` Union will seriously
damage SAS and make an already critical situation for the company even
more severe. The strike measures will affect third parties, meaning SAS`
customers. Given the competition now prevailing in the Swedish market, a
large number of customers will also leave SAS to fly with other
airlines.
During Friday, January 30, SAS will operate according to a new traffic
plan that will entail cancellation of some 80 departures between the
hours of 5:00 and 10:00 a.m. Furthermore, some 20 flights will be
delayed. In addition to SAS, Blue 1, Braathens, SAS Commuter, Snowflake
and Spanair will be affected.

Passengers seeking more detailed departure information are referred to
the SAS website: www.sas.se.

SAS will offer all passengers an opportunity to rebook their flights for
the hours in question.

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