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The SAS Group has in connection with the full year result in February
and at the 1st Quarter result in May stated that it is the primary aim
of the Board and the management of the SAS Group to attain a positive
result before taxes, capital gains and other non- recurring items for
the full year 2004 and take the necessary decisions for this to be
As a result of the continued large overcapacity on many markets and
heavy price pressure, yields have, primarily for Scandinavian Airlines,
developed very weak during April and May. The other airlines in the
group have developed according to plan.
Yields for May were down 22,5%1) compared with May 2003. (for
Scandinavian Airlines). In addition jet fuel prices has been at very
high levels during 2nd Quarter 2004.

The passenger volumes has during 2004 developed well and Turnaround 2005
incorporating cost reductions of SEK 14 billion develops according to
plan and has resulted in and will continue to give significant unit cost
reductions for all airlines in the group.

Due to the development during January through May and the continued
uncertainties about yields and the competitive situation, the Board and
the management’s previous aim about a positive result before taxes,
capital gains and non-recurring items, for the full year 2004 is
expected not to be possible to achieve.