Atlantic Airways P/F - Årsregnskabmeddelelse

Half Year Report 2012: Lower profit in first half

Revenue increased 3% to DKK 122.8 million in Q2 2012 from DKK 118.8 million in
the corresponding period in 2011. The increase is mainly attributable to an
increase in the helicopter segment. 

EBITDA (Earnings Before Interest,Tax, Depreciation and Amortisation) for the
second quarter of 2012 increased 8% from DKK 22.9 million to DKK 24.7 million
in the corresponding period last year. 

However, the result before tax (EBT) for the second quarter of 2012 was DKK 6.9
million, compared with DKK 12.1 million last year and the result after tax for
the second quarter of 2012 was DKK 5.7 million, compared with DKK 9.9 million
last year. 

The main explanatory factors for the lower result in Q2 are higher capital
costs (because of the new Airbus 319) and lower contribution from charter and
ACMI activity in Europe. However, lower contribution from scheduled services
due to seasonality and lower load factor, as well as  increased fuel costs and
strengthening US dollar had an impact too. 

EBITDA for the first half of 2012 were DKK 31.7 million, compared with DKK 32.2
million for the first half of 2011, a decrease of 2%. The result before tax for
the first half of 2012 amounted to DKK 1.7 million, compared with DKK 9.5
million in 2011 and the result after tax DKK 1.4 million, compared with DKK 7.8
million last year. 

In addition to the explanatory factors mentioned above there has also been
costs related to the phasing in of the new Airbus A 319 and the leased AW 139
helicopter for offshore operations as well as costs related to managing two new
aircraft types. 

The phase-in of the new fixed-wing aircraft type has been successfully
completed.  The operation meets expectations and supports a lower unit cost,
but traffic development in Q 2 was lower then expected and resulted in a lower
load factor while fuel and dollar cost increased. In general the experience
from the first four months is positive, however a full-year cycle will provide
a better understanding of the overall impact. 

“The introduction of a factory-new Airbus 319 equipped with RNP AR navigational
aid system has changed the aviation environment in the Faroe Islands. It
supports our goal to improve regularity and lower unit cost in order to provide
The Faroese people with the best service possible. We have not seen the full
impact yet but improved regularity, enhanced safety, greater comfort, new
destinations, reduced CO2 emissions and lower unit costs are some of the
benefits we will optimise in the future,”says Magni Arge, CEO. “In the second
quarter the helicopter operation has shown a solid potential through its
additional involvment in offshore operations and we look forward to support the
Statoil consortium during its exploration campaign in Faroese waters.” 

Oil activity - helicopter operation included - and fluctuations related to
holiday seasons will support the traffic development in Q 3 and campaigns to
support the traffic in Q4 is expected to increase the traffic in the second
half of 2012. 

Outlook for charter and ACMI are still lower but in Q3 agreements regarding
capacity provisions for tour operators out of Denmark as well as air logistic
support to offshore activity are in place while outlook for Q4 is more
speculative. 

Fuel prices and external economic factors are unpredictable and can still have
a significant impact. Severe disruptions and irregularity from adverse weather
in July is expected to cause higher cancellations and diverions costs in Q3
compared to the corresponding period last year. We remain cautious in our
guidance as to financial performance in 2012 and expect a result closer to the
2010 levels rather than 2011. 





For further information contact:

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

Marius Davidsen, CFO, tel. +298 213703, marius@atlantic.fo

Attachments:

H1 2012-Atlantic Airways.pdf