NOVEMBER 2020-JANUARY 2021

  · Revenue: MSEK 2,282 (9,707)
  · Income before tax (EBT): MSEK -1,936 (-1,087)
  · Income before tax and items affecting comparability: MSEK -1,948 (-1,078)
  · Net income for the period: MSEK -2,050 (-861)
  · Earnings per common share SEK -0.28 (-2.33)

SIGNIFICANT EVENTS DURING THE QUARTER

  · Rickard Gustafson announced his decision to leave SAS after ten years. He
will leave the company by July 1, 2021.
  · SAS and Apollo have extended their charter partnership in the form of a
three-year contract valued at SEK 3.4 billion.
  · SAS contracted and utilized a new NOK 1.5 billion credit facility with a
three-year tenor that is guaranteed in full by the Norwegian Export Credit
Guarantee Agency.

COMMENTS BY THE CEO

The pandemic continues to have a severe negative impact on the whole aviation
industry. An increase in number of cases has led to more stringent travel
restrictions, with a consequent reduction in demand during the quarter and
stalled recovery for the entire travel industry. However, the development of
vaccines and vaccination programs provide hope that restrictions will ease and
that we will see an increase in travel toward summer 2021.

QUARTERLY EARNINGS NEGATIVELY IMPACTED BY THE PANDEMIC

The quarter was marked by increased cases and growing concern for new mutations
of the coronavirus, resulting in even more stringent travel restrictions across
the world. In general, restrictions are currently more stringent than they were
in spring 2020.

The prevailing circumstances mean that SAS is continually forced to adapt
capacity and departures to meet weak and volatile demand. Capacity for the
quarter declined 75% year-on-year and 29% compared with the previous quarter.
Passenger numbers were down 5.3 million year-on-year and down 900,000 compared
to the previous quarter.

The negative traffic trend has resulted in revenue of only SEK 2.3 billion, a
year-on-year decline of SEK 7.4 billion. At the same time, SAS has succeeded in
offsetting the majority of the revenue loss by reducing costs, which are almost
60% lower year-on-year. However, the cost savings have not fully compensated for
the loss of revenue, and earnings for the quarter amounted to SEK -1.9 billion,
which is down SEK 0.8 billion compared with last year.

SAS' ability to manage liquidity is crucial for the company's ability to safely
navigate the ongoing pandemic, and liquidity amounted to SEK 4.7 billion at the
end of the quarter. As planned, SAS has pulled together to ensure that customers
are reimbursed for canceled travel, which amounted to SEK 2.1 billion during the
quarter. Moreover, we have also had one-time disbursements amounting to around
SEK 0.7 billion pertaining to postponed payments from 2020 and restructuring
initiatives. To strenghten liquidity SAS utilized a credit facility of NOK 1.5
billion, which is entirely guaranteed by the Norwegian Export Credit Guarantee
Agency (GIEK), during our seasonally weakest period.

ADAPTED CUSTOMER OFFERING BASED ON PREVAILING CIRCUMSTANCES

We have noted a pent-up need to travel moving forward, and as vaccinations gain
global momentum, it should be possible to ease the current travel restrictions
thus making it possible to travel again. Pending this, SAS is preparing to
reopen 180 direct routes for the summer, mainly within Scandinavia and Europe,
provided that the prevailing travel restrictions will allow people to travel.

To reduce uncertainty about booking, SAS has introduced even more flexible
ticket rules and rebooking alternatives. As always, no restrictions apply for
rebooking or cancelling our Plus tickets. In addition, our other international
tickets can now also be rebooked free of charge up to three days prior to
departure. If travelers prefer to cancel they can choose to receive a SAS Travel
Voucher which is valid as payment on all SAS destinations. For domestic journeys
in Sweden, Norway and Denmark, a SAS Go Flex ticket is now available, which
allows rebooking up to one hour before departure at no additional cost. For
customers who choose to pay for their tickets with EuroBonus points, free
cancellation applies up to 24 hours before departure as usual. Moreover, SAS is
now in-phase with refunding customers for canceled journeys, which means that
the company is once again meeting the seven-day refund requirement period for
canceled flights, which provides our customers with an extra element of
security. Following the implementation of these initiatives, we have also
conducted a number of well-received campaigns with increased bookings mainly for
the summer and autumn, albeit from low levels compared to the norm for this time
of year.

Air freight has filled an important function during the pandemic and has also
developed to an increasingly important supplement to lost passenger revenue,
particularly in terms of SAS' intercontinental flights. Many corporate customers
are also in great need of securing important logistics flows for their
operations in which SAS actively participates. For example, SAS Cargo
established air bridges during the quarter within Europe and to South America
for components for two major industrial companies.

In January, SAS signed an agreement with Apollo to extend their existing
partnership for three years, with the possibility of extension by an additional
two years. The agreement concerns charter traffic from Denmark, Norway and
Sweden to destinations within Europe, corresponding to a value of approximately
SEK 3.4 billion in the first three years.

CONTINUED WORK WITH RESTRUCTURING OPERATIONS

SAS has implemented a number of measures during the quarter to dimension
operations to the prevailing demand and to position the company for the expected
market conditions following the pandemic.

Continual adjustment and adaptation of the traffic program has reduced SAS'
variable costs by over 70%. The major redundancy process corresponding to
approximately 5,000 positions was completed, while SAS continues to use
temporary lay-offs throughout Scandinavia. These unfortunate, but necessary
measures have had a substantial impact and reduced personnel expenses almost 45%
year-on-year.

To further strengthen SAS' ability to adapt seasonally and increase productivity
and long-term competitiveness, talks are continuing with all labor unions within
the SAS Group. New agreements have been signed for some of our Norwegian
personnel during the quarter, and agreements have also been made concerning
frozen salary levels for several employee groups.

Additionally, SAS has renegotiated a large number of supplier agreements,
resulting in postponed payments of almost SEK 700 million in 2021, further
strengthening SAS' financial preparedness.

As previously announced, SAS has postponed deliveries of new aircraft from
Airbus and accelerated the phase-out of older and less fuel-efficient aircraft,
thereby strengthening our short- and long-term liquidity. In the last three
months, we have phased out or sold five Boeing 737 aircraft and simultaneously
taken delivery of three new Airbus A320neo aircraft.

The accelerated transition to new, fuel-efficient aircraft also means that we
are reducing our emissions and advancing toward our environmental goals. Over
the last twelve months, total carbon emissions have declined 74%. The majority
of this decline is related to reduced traffic, but also the use of new, more
fuel-efficient aircraft, which has contributed 2.1 percentage points. Moreover,
we recently expanded our future delivery undertaking with Gevo, to secure a
minimum of 20% of our planned consumption of sustainable aviation fuel in 2025.

LOOKING AHEAD

A high vaccination rate is the most decisive factor for the authorities'
willingness to ease travel restrictions and thus allow for the recovery of the
airline industry. As such, SAS is monitoring global vaccination developments
closely in order to be ready to quickly increase capacity when conditions
permit. However, demand is most likely to remain highly limited in the
foreseeable future, but we expect demand to reach more normalized levels in
2022.

The passenger mix will have an increased share of leisure travelers in the
future, which places even greater requirements on flexibility and seasonal
adaptations to our operations. Through its customer offering, fleet renewal,
sustainability work and operational model, SAS is well-positioned for the market
that will be formed following the pandemic. Thanks to our operational model and
the associated production units within this model that SAS has developed in the
last few years, SAS has a strong competitive position for the future. The model
enables SAS to offer a complete network and a timetable adapted to Scandinavian
requirements for business, leisure, and regional destinations through access to
flexible production resources fit for purpose.

I would like to express my gratitude once more to all of my colleagues at SAS
for their commitment and hard work during this difficult time. I would also like
to thank our customers for the confidence they show in us as Scandinavia's
leading airline. We are all looking forward to soon having the pleasure of
welcoming our travelers on board!

Rickard Gustafson,

President and CEOStockholm, February 25, 2021

This information is information that SAS AB is obliged to disclose pursuant to
the EU Market Abuse Regulation. The information was submitted by Michel Fischier
for publication on February 25, 2021 at 8:00 a.m. CET.