Today, the Swedish Government has put forward a proposal to the
Swedish
Parliament to support SAS AB (publ) (“SAS”) with up to SEK 5 billion as
part of
the company’s necessary Recapitalization Plan due to the negative
effects of
COVID-19. In addition, the Danish government has today communicated
political
unity for a recapitalization of SAS. The company estimates that
the
recapitalization will encompass new funding need of some SEK 12.5 billion
and
additional measures. The aim of the recapitalization plan is to ensure that
SAS
is fully funded and that shareholders equity will be at levels
experienced
before COVID-19 pandemic when business volumes return to pre-corona
levels. SAS
remains in dialogue with selected stakeholders regarding the terms
and
conditions of the recapitalization plan and the burden sharing measures
required
by the Swedish and Danish governments. These measures will involve
internal,
external and financial stakeholders in the company, including the
holders of SAS
outstanding bonds and hybrid notes. Further details are intended
to be announced
before end of June.

As an effect of COVID-19, there has been a
sharp drop in number of passengers
and consequently revenues for SAS. Despite
countries starting to re-open their
borders, the recovery phase for the airline
industry and SAS will most likely go
well into 2022 before reaching levels like
the demand ahead of the COVID-19
outbreak.

Given the negative financial
impacts of the pandemic, the Board of Directors of
SAS have approved a revised
business plan, including a reduction of workforce by
5 000 and the need for
productivity improvements in the range of 15-25% in all
collective bargaining
agreements. The plan also includes continued strict cost
control procedures,
renegotiated contracts with suppliers, reduced spend on
marketing, product, IT
development and other projects. Furthermore, it will
entail an adaptation of
the fleet size through postponements in aircraft
 deliveries.

Despite these
measures, the revised business plan will require a
recapitalization of the
company for it to be able to continue its operations and
its sustainability
agenda.  The Swedish and Danish Governments share the view of
the Board of
Directors of SAS on the need for a recapitalization. In this light,
SAS
welcomes the fact that the Swedish Government has put forward a proposal to
the
Swedish Parliament to support the company with an amount up to SEK 5 billion
in
shares and/or other transferable securities, as well as the Danish
political
agreement for the recapitalization of SAS.

Because of COVID-19 and
the expected recovery of the traffic to, from and within
Scandinavia, SAS
estimates that the company will need some SEK 12.5 billion of
new funding as
part of the recapitalization plan.  The aim of the plan is to
ensure that SAS
is fully funded and that shareholders equity will be at levels
reported before
the COVID-19 pandemic when anticipated business volumes return
to pre-corona
levels in 2022. As part of the potential plan, the Swedish and
Danish
governments have required burden sharing measures involving internal,
external
and financial stakeholders in the company, including holders of SAS
outstanding
bonds and hybrid notes.  SAS remains in dialogue with the
governments and other
selected stakeholders to agree on the terms and conditions
of their
participation. SAS also continues its efforts to secure support from
the
Norwegian government. The ambition is to announce further details before
the
end of June.

For further information. please contact:

SAS press office.
+46 8 797 2944

Michel Fischier. VP Investor Relations. +46 70 997 0673

SAS,
Scandinavia’s leading airline, carries 30 million passengers annually to,
from
and within Scandinavia. The airline connects three main hubs – Copenhagen,
Oslo
and Stockholm - with over 125 destinations in Europe, the US and Asia.
Spurred
by a Scandinavian heritage and sustainable values, SAS aims to reduce
total
carbon emissions by 25% and operate with biofuel equivalent to equal the
total
consumption of fuel used to operate all domestic SAS flights, by 2030.
In
addition to airline operations, SAS offers ground handling services.
technical
maintenance and air cargo services. SAS is a founding member of Star
Alliance™
and together with partner airlines offers almost 19.000 daily flights
to more
than 1.300 destinations around the world.

Learn more at
https://www.sasgroup.net

This is information that SAS AB is obliged to make
public pursuant to the EU
Market Abuse Regulation. The information was
submitted for publication by Michel
Fischier at 08:50 a.m. CEST on 15 June
2020.