Favorable growth and improved earnings in first half of 2007

Favorable growth and improved earnings in first half of 2007

Key ratios from the SAS Group six-month report published today:

• Income before nonrecurring items for the period amounted to MSEK 369 ( 588),
an improvement of MSEK 957. 
• The income improvement is attributable to a combination of favorable business
conditions, higher yield, effective capacity and cost control, and new business
models.
• The Group carried 20.1 million passengers during the period, which is more
than earlier and 5.8% more than in the preceding year.
• The Group's total revenue increased by 3.4% to MSEK 30,133.

Mats Jansson, President and CEO comments:

The quarter was characterized by continued favorable business conditions in our
home market, which contributed to growth in the market for air travel.
Consequently, the trend for passengers and yield remained positive and this,
combined with effective cost and capacity control, generated an improvement in
income of approximately SEK 1 billion for the first six months of the year.

In June, we launched our strategy plan 2011. The premise for this is to reduce
the Group's complexity to benefit the customer and the key terms are cultural
turnaround, focus, concentration, harmonization and increased competitiveness.
The objective of the plan is to create the conditions for profitable growth and
to achieve an earnings level that meets our investment requirements and
shareholders' demands.

I deeply regret the strikes that have affected SAS customers and shareholders.
Accordingly, a key part of our strategy is to implement a cultural turnaround
and find a new model for cooperation with the trade unions.

There are currently no clear indications of a slowdown in the economy or the
airline market, but uncertainty remains regarding the strength of growth, the
competitive situation moving forward and the trend for jet fuel. 


See the Interim Report at www.sasgroup.net for further detailed information.

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