Atlantic Airways P/F - Árshlutareikningar

Atlantic Airways better core operations - but weaker result

Atlantic Airways' result before tax was a loss of DKK 7.6 mill., compared to a
loss of DKK 5.9 mill. for the same period last year. The loss was on the same
level as expected, but in order to reach the budgeted result for the full year
2008, the company must, as other operators in the airline industry, introduce
measures to deal with the severe increase in fuel prices. 
For the first time ever, Atlantic Airways as a listed company publishes its
quarterly financial statement. The company posted a loss after tax of DKK 6.2
mill. for the first quarter of 2008 compared to a loss of DKK 4.8 mill. for the
corresponding quarter last year. 

The first quarter of the year is generally the weakest quarter in the airline
industry due to a lower volume of traffic during the winter season. The result
is on the same level as was expected despite the fact that fuel cost increased
by 20% during first quarter, and financial income declined. Excluding market
value adjustment of securities, core operations actually improved during the
first quarter of 2008 by DKK 1.5 mill. compared to 2007. "The first quarter result is acceptable under the current conditions", says
Magni Arge, CEO of Atlantic Airways. 

A total of 102,792 passengers travelled with Atlantic Airways in the first
quarter of 2008 compared to 79.705 the same period last year, an increase of
29%. Equity was DKK 208 mill. at 31 March 2008 and the resulting equity ratio
52.6%. 

The number of passengers on scheduled flights so far this year, and the number
of sold tickets for the summer season, indicate that the budgeted figures for
the full year are on track. The charters for SAS are also performing as
expected. There is no indication of increased helicopter activity in the Faroe
Islands later this year. Therefore is the company working on creating
partnerships outside the Faroe Islands. 

The company intends to offset the impact of increased fuel costs with fuel
surcharges and adjustments of the price and bonus system. If the current trend
of increases continues, it may be necessary to further increase the fuel
surcharges. The company has also undertaken some fuel efficiency measures to
reduce fuel comsumption and CO2 emissions. 

The full first quarter report for 2008 can be seen on the company website
www.atlantic.fo and is also attached to the OMX stock exchange announcement.
For further information contact Magni Arge, CEO, tel +298 341002-
magni@atlantic.fo or Marius Davidsen, CFO, +298 341032 - marius@atlantic.fo

Attachments:

080522 omx-a4-f--stock-exchange-annou.pdf

080522 q1 result atlantic airways 2008.pdf