Welcome to the SAS Q2 2023 report presentation. For the first part of the conference call, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing star five on their telephone keypad. I will hand the conference over to Klaus Landelius at Investor Relations. Please go ahead. Good morning, welcome to Scandinavian Airlines' Q2 2023 presentation. It will be presented to you by our President and CEO, Mr. Anko van der Werff, together with our Chief Financial Officer, Erno Hildén. Before we start, I would like to highlight that the information being given to you in this presentation today is a summary, and should not be considered as advice or recommendations to investors or potential investors in relation to purchasing or selling securities. Forward-looking statements presented to you today by Anko or Erno do not guarantee future results or developments, as the actual outcome could differ materially from the forward-looking statements. For further information, please read our financial and annual reports online. With that, I'll hand over to you, Anko, to start the presentation. Thank you very much, Klaus Landelius. Ladies and gentlemen, good morning, and thank you for joining us today. My name is Anko van der Werff, and I am the President and CEO of Scandinavian Airlines. I will start with a brief review of the quarter on slide two. We saw a continued positive trend for passenger demand during the second quarter. 5.4 million passengers flew with SAS, which is a year-on-year increase of 36%. Our ramp-up is on track. Compared to Q2 last year, our RPKS increased by almost 40%, 39% to be precise, and capacity with 25%. We are increasing our capacity for the summer and autumn with new destinations and added frequencies. We have added another 10 routes for the upcoming summer and autumn, in addition to the 20 new routes announced during the first quarter. We have also already inaugurated and announced several other new direct intercontinental routes starting this summer and autumn. I will get back to this later. Our EBT amounted to a negative SEK 1.4 billion this quarter, which represents a year-on-year improvement of SEK 143 million. Cost reductions remain a key priority across the business. It is important to remember that SAS FORWARD is designed as a multi-year program, which will go on until 2026. Many of the cost efficiencies of the SAS FORWARD plan are ramping up over time. Some have been implemented, but cannot be recognized in our financial results until post-emergence from Chapter 11. This includes, for example, the cost savings resulting from the fleet restructuring. We continue to make steady progress with our transformation plan, SAS FORWARD, and our Chapter 11 process in the United States. During the quarter, we took the important next step in the SAS FORWARD plan by starting the equity solicitation process. We are now running a competitive and broad solicitation process to secure the capital that will help drive our airline forward and facilitate our emergence from the Chapter 11 process, and I will explain our progress further in detail. We have entered into new sale and leaseback agreements with 10 new Airbus A320neo aircraft with ACG, Aviation Capital Group, scheduled to be delivered through the first quarter of fiscal year 2024. This means that we are securing competitive financing for our renewed fleet of modern and fuel-efficient aircraft. We have also made some important progress in our work towards fossil-free aviation during the quarter, and I will get back to that later on as well. I would like to mention the ruling by the General Court of the EU on May the 10th, which annulled the EU's EU Commission's previous decision to approve the participation of the Swedish and Danish states in the recapitalization of SAS in 2020. Let me be clear, first of all, that the ruling has no immediate effect on our operations, and we also have not seen any impact on our commercial performance. Furthermore, it does not change our expectations of obtaining approval from the EU Commission for the various measures taken since 2020, including the Danish and the Swedish state's participation in the ongoing Chapter 11 process. We are progressing as planned in that Chapter 11 process and will revert on these issues when there is further information to share. Moving on to passenger demand on slide three. As you can see in the chart to the right, passenger volumes increased with 36% to Q2 of last year. We are pleased to see that the overall underlying demand for travel was healthy during the quarter, despite economic uncertainties in society as a whole. We continue to ramp up our capacity as part of our strategy to strengthen the offering for Scandinavian travelers. During the quarter, we added another 10 routes for the upcoming summer and autumn. We also added frequencies to popular destinations. I'm especially pleased that we are resuming traffic to Haneda, Tokyo, three times a week, starting in June. That we're bringing back a direct route from Copenhagen to Bangkok as well, starting this autumn. I know that this is something that many of our customers have been asking for, and after the quarter ended, we also announced that SAS is returning to Africa for the first time in decades. Starting in November, we will offer weekly flights to Agadir in Morocco from both Stockholm and Copenhagen. Another highlight during the quarter was the inauguration of three new routes from New York, or to New York, sorry, in the U.S., from Gothenburg, Aalborg, and the new route from Copenhagen to JFK. We go to slide four, operational performance. Our load factor increased by 7.4 percentage points versus last year to almost 75%. In terms of regularity and punctuality, our numbers for Q2 have decreased compared to last year. Our regularity is generally highly impacted by external events around or outside of our control. The chart to the right illustrates this very clearly. Our regularity development during April was impacted by several strikes, as well as heavy snowfall in Oslo, causing sharp and temporary drops in our regularity. Overall, more than 50%, or 50% of our cancellations in the month of April were on three specific days that were caused by events outside of our control. Now, I will hand over to Erno, who will take you through the financials. Erno, please. Thank you, Anko, and very good morning to you all, also on my behalf. I will cover some key areas and then detailed highlights for the financials for the second quarter, and after that, Anko will come back again and give us an update on the progression and the next steps for SAS FORWARD, together with some comments on the current outlook for the future periods. On slide number six, we have the quarterly revenue and operating cost performance compared to previous financial year. As you already know, for us, the second quarter is seasonally significantly stronger than the winter traffic during Q1, but it is still substantially below the summer traffic volumes during the third and fourth quarter of the financial year. As Anko pointed out, we have continued significant growth in our traffic and with the passenger revenues during the second quarter. Overall, our revenues grew by some 27% and reached SEK 9 billion. The increased level of activity naturally also means that our variable production costs have been growing. Overall, our capacity in available seat kilometers grew by 25%, and the number of passenger carried increased by 36% compared to Q2 2022. Our ramp up back to pre-pandemic levels is still ongoing. Our capacity for the second quarter was approximately 78% of the ASK we operated back in 2019, which is our most recent comparable period before the significant slowdown of our traffic due to the pandemic. Having a capacity level of 78% compared to pre-pandemic volumes means that we still need to continue efforts to ramp up our traffic to maximize the asset utilization and labor productivity to reach the full benefit from the cost initiatives and the new CBAs, both obviously very necessary to reach competitive unit cost levels in all areas. We have been making steady progress with our transformation plan, SAS FORWARD, targeting to reduce our annual costs by SEK 7.5 billion by financial year 2026. We are on track with the program. Unfortunately, in Q2, we are still experiencing headwinds from historically high jet fuel prices and the very weak exchange rate of our accounting currency, the Swedish krona. I will share some more details about the impact with the following slide. Our operating income, or EBIT, for the second quarter was negative at approximately SEK 1 billion, and earnings before tax, or EBT, negative at SEK 1.4 billion. We obviously are not satisfied with the negative result, but we are on track and maintaining our financial projection from April this year. I will walk you through the main drivers and development in the following slides. Let's jump on to the next slide and start with our revenue development. Here on slide seven, we have the revenue development during the quarter, and as Anko pointed out, we continued with solid demand trend during the quarter, combined with solid growth in traffic. For Q2, our scheduled capacity in ASK grew by 26.8%, and our demand in RPKS by 41.6%. This means that our scheduled passenger load factor, or PLF, continued to improve with an 8 percentage points increase from Q2 last year and landed at 73.7%. This means that there's obviously still room for improvement, but we saw a solid gain from last year's level and actually exceeded the 2018 and 2019 levels. The growth in total traffic, including the charters, was similarly strong. Our capacity in ASK grew by 25.2%, and the demand in RPKS in by 39%, bringing the overall passenger load factor up to 74.3%. The growth in traffic and improving load factor naturally gave us a healthy boost in revenues, with total revenue for Q2 increasing by 27%, up to SEK 9 billion, and adjusted for currency by 25.6% from previous year's level. Looking deeper into the scheduled traffic capacity development, we can see we were growing proportionately the most in the intercontinental traffic, where capacity increased by 31.7% in ASK, and the demand in RPKS by 72.1%. In Europe and Intra-Scandinavian traffic and then domestic traffic, the capacity growth was 28.3% and 16% respectively. The RPK growth in these sectors was at 33.9% and 20.8%, signaling solid demand also in these markets. The biggest contribution to our revenue growth came from increased capacity, representing some SEK 1.3 billion of the increase compared to previous year. The overall PLF improvement of 7.4 percentage points translates to approximately SEK 717 million of additional revenue. Our scheduled passenger yields were nominally very close to previous year's level, but adjusted for currency, there was a very slight decline of less than 1%. The passenger unit revenue or PASK, increased nominally by some 12% and by 11% adjusted for currency. During the second quarter, we saw a softening in our cargo revenues compared to previous year, with an overall currency adjusted decline of SEK 160 million. We consider this to be a signal of normalization of the cargo market from the unusually strong demand environment during the pandemic, and not a severe downturn in performance as such. In other traffic revenue, we were SEK 145 million below previous year's level for the second quarter, once again, adjusted for currency. This is due to having an unusually high level of unused tickets and vouchers recognized as revenue in the previous year. Despite being below previous year's level for the other traffic revenue category for the quarter, our ancillary revenue development was still strong during the second quarter. The overall effect from capacity growth and improving load factors, combined with some negative development with cargo and other traffic revenue, led to a modest nominal overall growth of unit revenue or RASK, for scheduled traffic of 2.5% and 1.4% adjusted for currency. The positive currency impact for the second quarter in revenue was a modest SEK 85 million. Overall, we are satisfied with the passenger revenue development for the second quarter, with the continuing growth and solid gains in passenger load factors. As the comparisons are stronger than during most of last year, we are not witnessing quite as big gains against previous year's quarters as during most of financial year 2022. Let's move over to the next slide, please. Here on slide eight, we have the earnings before tax or EBT development during Q2. Last year, our loss for the period was at SEK 1.6 billion, driven by very low production volumes compared to this year. The EBT for Q2 this year was at SEK -1.4 billion, so we have a slight improvement from previous year. Let's walk through the main drivers behind it. As you can see from this chart, we had an overall positive impact of SEK 360 million from foreign currency rates for Q2. However, the impact is split between having a negative impact of SEK 290 million in our operating income, and then a positive impact of SEK 653 million in the net financial items. This is mostly from the revaluation of the dollar-denominated aircraft lease liability. As I mentioned before, many of our variable operating expenses have grown in line with the increased production. Our biggest individual cost line, jet fuel costs, increased by SEK 746 million, or 44.6% during the quarter. The increase was mainly driven by increased volume, representing SEK 511 million of the cost increase, then with currency impact representing SEK 180 million, and the emission rights with SEK 106 million. During the second quarter, we had a lower average fuel price than during Q2 2022, which brought us a positive impact of some SEK 200 million. The average price during the quarter was still historically at a very high level, at the end of Q2, as through previous quarters, we remain unhedged for fuel. Our second biggest cost line, personnel costs, increased by SEK 180 million or 10.3% during the second quarter. This was driven by continuing ramp up of traffic. Our average number of full-time equivalent employees increased from approximately 6,900 to 7,900, up by 15%. We are already seeing some gains in our 12-month rolling crew productivity and aircraft utilization between 5%-6%, and we expect to see continuing further gains as we move closer and reach the pre-pandemic levels of production. Our other costs developed in line with targets and our currency-adjusted unit cost, or CASK, excluding fuel, reduced by 1.7%. As with aircraft utilization and labor productivity, we expect to see further achievements as we increase the production volumes. The incremental savings from our transformation program thus forward for the quarter were SEK 336 million year-on-year. Further gains will follow as we proceed with the implementation of our cost savings initiatives. The currency-adjusted net financial items were down, meaning additional net cost with SEK 319 million for the second quarter. This was driven by the DIP loan costs as interest and fees. Nominally, the net financial items were up by SEK 366 million, driven by the positive exchange rate differences compared to Q2 2022. Moving over to the next slide, slide five. On this slide, we have the development with our liquidity position during the second quarter. At the end of Q2, our liquidity position was at SEK 5.6 billion. Our operating cash flow for the period, including changes in working capital, was positive with SEK 2.49 billion, compared to a negative SEK 1.7 billion during the first quarter of the financial year. The development is following our regular seasonality pattern, also underlining the continuing healthy booking trend towards the summer. We had positive development with our working capital, driven by the strong increase of unearned transportation revenue or UTR, this was slightly countered by the growth of sales receivables from our charter business, which is also picking up pace towards the summer. In Q2, we continued our fleet renewal program according to our plan. We took delivery of 4 further Airbus A320neo aircraft, which bring us class-leading performance with fuel efficiency and sustainability. We are already 1 of the biggest operators for this type in the region. All these aircraft were fully funded by competitive sale and leaseback contract, as a net impact, we had no material outflow from investing activities for the second quarter. During Q2, we also entered into new sale and leaseback agreements with one of the leading aircraft lessors, Aviation Capital Group, or ACG, for 10 further new Airbus A320neo aircraft to be delivered by the first quarter of financial year 2024. For financing activities, we had a negative outflow of SEK 2.47 billion, consisting mostly of prepayment of borrowings in planned quantities and the amortization of lease liabilities. During Q2, we renewed the emission funding we raised last year, but due to the growth in traffic, we now have less free emission rights to use, so we have somewhat come down in capacity for this funding. As we have commented earlier, we see no near-term need for additional liquidity through the second tranche of the DIP term loan, which is a very expensive form of funding, and we are currently working on other opportunities to supplement our liquidity position at a lower all-in cost than a near-term utilization of the second tranche of the DIP term loan. Then moving on to the next slide, number 10. On the left, we have our current debt maturity profile. The majority of this year's forecasted outflow is the repayment of the DIP loan, covering SEK 3.6 billion out of the total of SEK 4.2 billion. Our plan, as is customary in Chapter 11 processes, is to refinance the DIP funding in the equity raise process. For the equity raise, our target is to raise no less than 9.5 billion SEK of new common equity to complement the targeted reduction or conversion of 20 billion SEK of debt into equity. As a contingency, the DIP loan itself can also be extended in line with the terms and conditions of the contract, on this chart, the drawn first tranche is shown to mature this year without any extensions. Included in the maturity profile on this slide for the years 2024-2027, we are showing the term loans from Norway maturing in 2024, and then the loans from Denmark and Sweden maturing in 2027. As we have communicated before, we have received confirmations from Sweden, Denmark, and Norway for their willingness to engage in the debt-to-equity conversions for their respective loans to the company, subject to material progress being made with such forward plan and all the necessary approvals being received. On the right-hand side of this chart or slide, we have the scheduled aircraft deliveries for the future periods. This year, after the second quarter, we are still expecting to take delivery of six additional aircraft, consisting of three further A320neos and three E195 regional aircraft that are to be delivered for SAS Link. On the hedging front, we currently have no hedges for fuel and for foreign currencies. Our policy is to hedge between 40% and 80% of our exposure. At the end of the quarter, we have hedged some 45% of our anticipated US dollar cash flow deficit for the next 12 months. In terms of the Norwegian krona, which is our largest surplus currency, we have hedged at 40% for the next 12 months. With this, I now hand over to you, Anko again, to take us through the progression with SAS FORWARD. Yeah, perfect. Thank you, Erno. Moving on to a brief status update on SAS FORWARD and Chapter 11. Let's move to slide 12, please. As you know, we launched our transformation plan last year with the overall objective to take us back to competitiveness and profitability. The plan consists of the three key elements illustrated on the slide here, which we've gone through before. The first pillar is that reduced cost structure, SEK 7.5 billion by fiscal year 2026. We are continuing to make steady progress in reaching that target. The second pillar is the restructuring of our balance sheet. All in all, we're looking at reducing or converting SEK 20 billion of debt into equity. We have already received the intended support from Denmark, Norway, and Sweden to do so by converting their hybrids and unsecured loans into equity, conditional to all other stakeholders participating in SAS FORWARD. The third pillar is the aim to raise new equity of at least SEK 9.5 billion, a process that we have now started following court approval on May 15th. We are running a competitive, broad solicitation process to secure the best available terms and conditions for new capital. The deadline for potential investors to present final bids takes place in the second half of August, approximately 13 weeks from a few weeks ago from May 15th. This is a milestone on our journey towards improved financial strength, secured long-term competitiveness, and our ambition to fortify our position as Scandinavia's leading airline. Given the substantial debt-to-equity conversions or reductions anticipated, combined with the need for substantial new capital, we currently expect that there will be only modest recovery for general unsecured creditors and little or no recovery for subordinated unsecured creditors upon emergence from the Chapter 11 process. Further, there is currently an expectation that there will be no or very little value for existing shareholders of SAS AB at the end of our restructuring proceedings. Turning to slide 13, let me mention a few words on the important progress we are making in our work towards fossil-free aviation. Being a leading airline in sustainability is key in our strategy moving forward, by involving and teaming up with our customers, we can reduce emissions and enable more large-scale production of sustainable aviation fuels. We have entered two new partnerships during the quarter. In February, the Danish company, DSV, became the next company to join our corporate sustainability program, meaning that DSV will buy sustainable aviation fuel for all its corporate travel with SAS for 2023. In late April, we then further signed an agreement with Sundsvall Municipality, which makes it the first municipality in Sweden to only purchase biofuel tickets for all business travel flights for its employees. We hope that these partnerships will inspire other organizations to reduce their air travel emissions and contribute to the transition towards sustainable aviation. We also launched two ticket types that include biofuel during the quarter. This means that Go Smart or Plus Pro travelers on domestic, Scandinavian, and European flights can purchase tickets with 50% sustainable aviation fuel included, lowering their CO2 emissions of their SAS trip. We are happy to again have been voted the most sustainable company in the aviation industry in Sweden, according to the extensive brand survey, Sustainable Brand Index. Last but not least, we announced yesterday, we are excited to open up four seat reservations for our first commercial electric flight, which we expect to take place around 2028. We really do this to manifest our strong belief in the development of electric aviation as a viable option to low and zero-emission aviation. Turning to slide 14, I would like to mention a very special collaboration that we are immensely proud of and that I was able to visit and see with my own eyes last month, which is part of the EU Civil Protection Mechanism. Through a long-standing agreement with the Norwegian Armed Forces and Norwegian Directorate of Health, we have converted a regular Boeing 737 aircraft into a hospital evacuation aircraft. Since the invasion of Ukraine started in February 2022, we have assisted in evacuating well over 1,000 wounded and critically ill patients, flying them from an evacuation center in Poland to hospitals across Europe. I saw with my own eyes again, the power of flight, right? We really believe that this demonstrates the importance of aviation as a whole. Slide 15, moving on to a different topic worth highlighting. In April, SAS's redesigned app won a prestigious Webby Award, an international award honoring excellence in the internet. Our new award-winning app offers a range of new features, including a simplified booking process, travel recommendations, real-time flight updates, and easy access to boarding passes. The award serves as a validation of our dedication to provide exceptional digital solutions to our customers and, at the same time, providing further ancillary opportunities for our passengers. Slide 16, outlook. We'll keep it short so that we have some time for more questions. We are entering the busy summer season with a large number of new routes and frequencies, and we continue to make progress with our SAS FORWARD and our Chapter 11 process. The equity solicitation process will run over the summer, and the deadline for presenting final bids by potential investors takes place in the second half of August. We're also engaging with our different stakeholders and working towards building consensus for the plan of reorganization, and we still target to complete the Chapter 11 process in the latter part of the second half of 2023. I believe this has been mentioned before, but we announced new financial projections during the quarter, which reflect improved long-term expectations for passenger demand, as well as faster capacity rebound. You can read more about those financial projections in the report. To summarize, we are executing on our plan. We're seeing progress together with our partners and stakeholders. We are building the future SAS. Let me close off by thanking certainly all our colleagues around the business for their contributions and their dedication again, over the last few months, and certainly going into the summer season. It is fantastic to see their dedication. Yesterday was the International Day of Flight Attendants, last week was the Mechanics, and we really, truly appreciate all the support we are getting from our SAS colleagues. With that, I would like to open up for questions, please. If you wish to ask a question, please dial star five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial star five again on your telephone keypad. The next question comes from Jacob Pedersen from Sydbank. Please go ahead. Yeah. Hi, guys. Can you hear me? Perfect, Jacob. Good morning. Great. I have a couple of questions. First of all, the ATC issues at the Copenhagen Airport, how does that affect you? What measures are you taking in the operation to reduce the impact of this? Yeah, perfect, or not perfect, because clearly, of course, we have been affected, Jacob, as you know. Yeah, I think that is one of the reasons why we also highlighted that operational performance. When you see on that slide, we have, right, I believe it was 20 days out of the 30 days, where we are really at, call it 99.5%, right, of regularity. Really, ATC in Copenhagen is, of course, an increasingly difficult component for us to deal with. Important to realize, I've said it this morning in some of the press interviews, we are the collateral damage there, right? We are, of course, the victim because we don't have a seat at the table. We are not the ones negotiating, but of course, the impact is ours. To come back specifically to your question, we have the delays, we have cancellations, we sometimes therefore have crew that go out of hours, and we have aircraft that are maybe in the wrong positions to start up the next day. That is very complex for us, and of course, first and foremost, our passengers, right? We have passengers that we then have to put in hotels, that we have hotel costs for, we have stay on the way packages, if you like, right? Food, drinks, hotel, et cetera. All of that is very complex for us to deal with. Any measures you can take to reduce the impact of this? Not really at short notice, right? That is the complexity of this. You cannot really change your schedules for the next few weeks. We also don't know how long this is going to last. Again, that's why I'm using, I think, strong language, collateral damage and victims, because we hope, of course, that this is solved very, very soon, and that we really will have a very smooth summer season. Yeah, taking out capacity, for instance, and moving that to other airports, of course, we have discussed that. Of course, if you would know that this is going to take, right, I don't know, but let's say this is taking up to 1 year, then you could really change your entire flow system, right? Being our most important hub, being our main airport, it is very clear that, yeah, that it is very costly for us. Yeah. Yeah. Okay, I have to ask about this as well. I'm in need of a better understanding of the process regarding the state aid. The EU Court of Justice ruling on this state aid back from 2020, do you expect this verdict will end up with you repaying the state aid of SEK 7.5 billion? Or what different paths are there? Can you shed any light on this? Yeah. No, we don't expect to do that, and I think we can break it down into the following elements. First of all, let me reiterate that we have seen absolutely zero impact operationally, commercially, sales, et cetera, on or because of that ruling, right? There is nothing to be expected there either. That at least is very static, very stable, right? Yeah. Yeah. Yeah, why do we say that we don't expect anything also for or why doesn't it affect the process? The equity solicitation process and the entire restructuring process that we're going through at the moment always had the regulatory approval towards the end of it, right? We have been very clear about that once you raise that equity, of course, you will still need to get regulatory approval. That regulatory approval also was always including the final approvals or the approvals for the rolled-up 2020 state aid that was received because the intention is to convert that debt into equity, right? We always said that that was needed anyway. The investors that we're dealing with, potential investors that we're dealing with, they understand that, right? These are professional parties. They understand that that would require. A regulatory approval towards the end of process anyway. That's why we're saying, there will not be an impact. We're following the course. We're staying absolutely on course of the process that we're in. More on that, right? Call it towards the end of August, when we have completed our equity solicitation process. Okay. No repayment and any other modifications to this state aid that could make it legit, so to speak, a sell-off of slots, creating some kind of exit plan for the Danish state, so sounds yeah, not very realistic because the Danish state wants to expand its ownership. Any thoughts on this? Yeah. Like you say yourself, I don't think it's any of those drastic measures, we don't see them at all being on the table or being realistic. Let's be clear there. Yes, we will have to do, and I think that's primarily up to the states, right? Because they're, of course, members of the European Commission or the European Union, not us. The European Commission, with the states will have to come up with something that satisfies the courts, right? And that is, in our case, specifically a step-up mechanism. We know that we're not the only airline in this boat, right? We have seen, of course, that this ruling was also against other airlines. In our case, it's one element. It is that step-up mechanism, and we are, of course, trying to work with the states on how we could come up with a different solution for that. Okay, okay. Last question from me. Regarding the yield, your yields are practically unchanged in an environment where all competitors are increasing yields quite dramatically. What are the dynamics behind this? Is this a, is this you gain, trying to gain market share, or is it simply a question of intercontinental flights not being that big a part of your mix? Yeah, I think it's a combination of some of those things. I think it's very much also, when we come at this, is, of course, comparing to last year. Look, 7.5% load factor points up, right? To 7.5 percentage points higher. That already is quite significant. We didn't ramp down as much last winter, this winter, right? We have, yeah, what was it? About 30% more capacity to fill, and we filled that at the same yields. I do think that that is actually quite positive in that sense, right? 30% more capacity, 36% more passengers that came in at the same yields. I would see that as positive. There is that network composition. Indeed, there is more long haul, there is more EU South, there is, of course, more leisure, relatively speaking, to what we had also in 2019 still versus that corporate. All of that combined. Again, 30% more passengers at the same yield, I don't think that is bad news. Okay. Okay, thanks so much for your time. Thanks, Jacob. Thank you. The next question comes from Achal Kumar from HSBC. Please go ahead. Yeah, hi, thanks. Good morning, good morning, everyone. First of all, just wanted to understand about the competitive landscape for SAS. I mean, Ryanair has already been very loud and clear that they are going to increase capacity in Sweden, and, you know, what's the position at the moment, and how are you planning to capture the lost grounds for SAS? If you could please help your thoughts on that. Thanks, Achal. Good morning. Look, competitive landscape for us is, of course, really a mixed bag because it is in the domestic markets, it's in regional, and it's also long haul, right? You have definitely seen us address some of the long haul. We have expanded, I think, quite rapidly in fact, to the United States, we are already bigger than we were in 2019. That really is positive, and we do continue to see positive developments there. On the regional, to South Europe, for instance, into leisure destinations, we've also added, I think, in hindsight, probably for the quarter, we could even have done more on that and taking a further diversification of our network, probably. That's something definitely that we are evaluating and see how much more we could do there. I think there is still, even if already also to South Europe, we are bigger than 2019. Looks like maybe we could do even more. Then, of course, you get to people trying to backfill. I think there is an element of certain airlines that were bigger pre-pandemic. I also see that Norwegian, same as us, was bigger in 2019, and some of that is trying to be backfilled by the likes of Ryanair and others in this part of the world. There, yeah, we do believe that with 7.5 billion people in our loyalty databases, with, of course, our corporate contracts, with the frequency pluses that we're having, we are having a very solid position. We do think that by ramping up again in 2024 to the level that we were in 2019, we will get back to those levels as well. Okay, perfect. In terms of corporate traffic, I mean, have you captured the lost grounds or you're still behind? I mean, you know, Norwegian has been saying that, you know, they have got the corporate market share and, you know, because of the uncertainties at SAS, and that's obvious. Now, of course, you're growing rapidly. How do you see the recovery in the corp in terms of corporate traffic? Have you started discussing or renegotiating the corporate contracts? Have you seen the corporates coming back to you look for agreement renewals? What is the status there? Yeah, perfect. Let's split it. I think indeed on renewals and new contracts, we're actually quite satisfied. We also won a very big one with the Swedish state. That's one of the biggest ones in the region that you can really win, and there we are exclusive to a large chunk of that traffic. That was really good. What is overall still true is that leisure is still leading the way, right? I think we have said it, I see many airlines pointing to it, and that seems to be, I think also within quarters, a bit more pronounced again, right? That would be maybe a more seasonal shift between call it the i... the traditional IATA seasons, but also in a month like April, when you have Easter, that there is potentially more still to be analyzed further, but there is maybe even more need for leisure and somewhat more, right, in your network, I mean, in your network to then pivot even a bit more to leisure and somewhat less to corporate. Overall, leisure is still leading the way. On the corporate contracts and renewals, we are really not concerned. In terms of percentage, I mean, if you need to put up a number, what percentage do you think the corporate travel has recovered for SAS as compared to 2019? Well, we are not really guiding towards any numbers there. I would say that there is a good, probably, yeah, a spread between leisure and business. I would still say that there is probably about a 10 percentage points. To what extent that is back, yeah, let me keep that to ourselves. Okay, perfect. Thanks. the next question, I wanted to understand if you could please help, or could you please update the status of your agreements with different unions as of now? Yeah, pretty much all of it closed. We don't have any open agreements, that also is, of course, good news for summer stability. Jacob earlier asked about air traffic control issues. That is, once again, I want to be very clear, outside of our control, right? That is, of course, not an SAS Group. All of our union agreements are closed for the time being. In terms of aircraft bases, what will be your strategy? I mean, previously, of course, you had a strategy to have bases outside Scandy. You know, so now, would that strategy still? I mean, would you continue with that strategy or you're just reviewing the strategy at the moment? What will be the strategy in terms of aircraft basings? Re- reviewing some of it, including the long hauls, right. We had also some long haul where I believe that we have really come to a conclusion that that will not make a lot of sense. For instance, that Asian base, given the limited flying to Asia because of Russian airspace closure. In Europe, we are definitely reviewing. I think for the time being, very much focused on ramping up within Scandinavian bases, right, and making sure that we have, of course, the bases fully staffed here, also to deal with that ramp-up for next year. Then I think we should tackle that discussion again about bases elsewhere. We have at least, and that will certainly not change, very important for us, that very relevant London base with SAS Connect, right. That is a stronghold, and that will definitely, stay. Okay, okay. Actually just, you just talked about Asia, which is definitely a very interesting point, you know, given that Russian airspace, of course, the flight length has increased for all the European carriers, and that's where the challenge is because there is a potential for European carriers to lose business to the Chinese carriers. You just mentioned that you're increasing capacity to Bangkok and Haneda. How do you see that? I mean, you know, are these routes still profitable because the yield is high? Or what's the status exactly, and then how are you going to... How do you think you'll be able to compete with the Chinese carriers who will have direct access to Russian airspace, and hence they'll have much shorter flight length? Yeah. I think that will, or that could be indeed some, yeah, distorted competition, if you like, right? That I think is the risk that all of us are running, but we know we're doing it for the right cause, right? Hey, it is Russian airspace is closed for us, and I don't see that ending anytime soon, so we, of course, adhere to that. Yes, yields are still elevated, right? That's something that we're seeing certainly still on China. We are going back in now to Japan, so we're looking forward to seeing how that performs this summer, and then going back into Bangkok as of call it winter season, right, end of October, with three, also three weekly frequencies. Yeah, then, I think that will be our winter program, right? Three frequencies to Haneda, three to Shanghai, and three to Bangkok. Limited from what it was before, but still at least some footprint. Okay. In terms of fuel hedging, what will be your hedging policy now? I mean, would you follow a previous hedging policy or do you have any change to that, given that the fuel price is so volatile now? I mean, they're kind of declining, but what is your policy study or hedging, fuel hedging policy going forward? Our hedging policy is staying intact, we are just obviously monitoring the market very closely and considering very carefully what is the right time to start building up the hedge position again. There have been no changes to the policy. Finally. Sorry, my last question is about the aircraft. In the chart, you mentioned these aircrafts. Just want to understand if all these aircraft are for growth or these are for the replacement, some of these are for replacement. How should we look at it? It will be a mix between growth and replacing the older generation of aircraft. We have no specific numbers to give, but you can assume a majority of that will be used to first replace the existing older generation aircraft, then the additional part will be for growth. Okay, perfect. Thank you so much for your time, and wish you great luck. Thank you. Achal Kumar, thank you very much. The next question comes from Kurt Hofmann from Air Transport World. Please go ahead. Yes, hello. Good morning, gentlemen. Good morning, Anko. I hope you can hear me? Yes, absolutely, Kurt. Good morning. How are you? Hi, good morning. I have a few fleet questions, if you don't mind. I'll keep it short. Regarding the supply chain difficulties, as we all know, do you have problems with your maintenance, for example, like other airlines have, that you don't have all your aircraft in the air? I would like to ask you also regarding the A321LR operations across the Atlantic and so on, which other ideas you would have with this aircraft and how so far you're satisfied with it? Yeah, perfect. Yeah, supply chain. Look, again, everything in the industry is in much better shape than it was last year. There are issues, but, I mean, it's still clearly not back to 2019. That clearly is the case for Boeing with the MAXes. Airbus hasn't ramped up either fully, and, right, spare parts, et cetera, everything there as well. There is still issues, but it is much better shape than we were last year. All of that is really much better. The LRs, you've seen us launch at least a few routes, Aalborg, New York, Gothenburg, New York, right? Very interesting to see how they will perform this summer, and I think when it comes to the LR as a whole, we still have more ideas than planes in a way, right? There is really that could go to a lot of places for us, but we really launched it only last summer, and last summer was, of course, a very weird summer. Towards the end of the summer, we really did think it was starting to perform very well for us. This summer, we have to see it again. It's on new routes. They always, right, take a bit of time to ramp up. There's no problem there, but we really want to give that aircraft also the time to prove itself. Yeah, if and when it does, we have a lot of ideas to deploy that aircraft. Also a possibility for new routes, I can imagine? Yeah, exactly. Right, I think it is really a good aircraft in terms of size for us, right? These are smaller countries that we deal with, right? Sweden being the biggest at 10 or 11 million but in various cities. Starting new routes with the wide body, of course, a massive, capital investment, and so to do that with the LR makes a lot of sense, right? There's a lot of secondary cities, there's a lot of places that would still require either direct service to places where we currently only fly from the hubs, or you go to the hubs, and then you add more frequencies, and you also test new destinations, right, from the hub. Again, with the LR, we have more ideas than planes, but we still need to make sure the aircraft works first. Currently, we've seen very strong tickets fares actually all over Europe. That means that demand is strong and passengers are willing to travel. Do you think this will change maybe next year, that passengers may be less travel and the tickets fares will go down, and what that means for an airline like yours? Yeah, I'm not sure about that. our long-term view a t least for the time being, we don't see a trend change, right? Of course, volumes are different, right? June, July, August, of course, there's far, far more volume than, for instance, September, October. When we look now after the summer, we don't see a trend change. Let's go back in time, right? Six months, when we also spoke here, when we looked at the winter season, and we're thinking about inflation and energy pricing and, right, all of that, all of the macroeconomic headwinds that were coming our way to potentially have an impact on passenger demand, that did not materialize, right? We actually have seen and are continuing to see, a very healthy demand environment. Final question, maybe, I don't know, but you have a lot of experience in South America. Can you imagine that SAS one day will come back to South America one day? Well, look, it's step by step. We have at least now done Asia, right? Yep. We reintroduced after the pandemic. Actually, we kept on flying Shanghai. We are now reintroducing Africa. Yeah For the first time in decades, we're going into Africa. Of course, it would only be great if one day we go back to Latin America. Yeah. Sounds good. Looking forward to see you in Istanbul the next days. See you next week. See you. Bye-bye. Thank you, gentlemen. Thanks. Bye. Thank you. As a reminder, if you wish to ask a question, please dial star five on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. Thank you very much. That concludes our session. Thank you also for participating. Thanks for your questions, of course. I wish all of you a pleasant summer holiday. I hope to see you on board of one of our aircraft over the next few weeks. Thank you very much.