Atlantic Airways P/F - Company Announcement

Atlantic Airways signs second contract with Atlantis Rejser

Atlantic Airways has signed a second contract with the Danish tour operator
Atlantis Rejser to provide charter capacity, primarily out of Copenhagen,
starting in October 2013. 

Atlantis Rejser is one of the leading Danish tour operators specialising in
Egypt, and was the first Nordic travel agency to offer package holidays to
Sharm el Sheikh, as early as 1994. The contract lasts until 2016 and will
generate an estimated turnover of DKK 80 million in 2013 and 2014. The activity
is distributed throughout the year, with a peak in the winter season. 

Atlantic Airways will phase in its second Airbus 319 in June and will add a
third Airbus 319 in Autumn 2013 to cover for the new contract. 

This contract will not change the expected result for the full year 2013. But
the agreement is seen as an important step in Atlantic Airways' growth in
activity, based on the Airbus 320 series and this growth will consequently
support a lower unit cost. "This is a significant contract for us and we value highly the trust Atlantis
Rejser has given us as a carrier. It is also supporting our ambition to grow
our fleet of Airbus 319 aircraft," says Magni Arge, CEO. 

“Our cooperation with Chilean carrier DAP provides us in parallel with the
opportunity to reduce our fleet of BAe Avro RJ 85 aircraft. One Avro RJ is
currently operating in Chile and a second delivery is planned in the Autumn of
2013," he adds. 

Atlantic Airways expects to operate three Airbus 319 and one Avro RJ in Q4
2013. Currently the airline operates one Airbus 319 aircraft, two BAE Avro
RJ-85 and one BAE Avro RJ-100, as well as two helicopters. The Faroe
Islands-based carrier focuses primarily on providing the Faroe Islands with
important air services, but it is also involved in increasingly important
activity in other markets. 

For further information contact:

Magni Arge, CEO, tel +298 213700 - magni@atlantic.fo