Atlantic Airways P/F - Ársreikningur

Atlantic Airways: DKK 6 million result in the second quarter

Atlantic Airways' result after tax was more than DKK 6 million in the second
quarter of 2008 compared to DKK 17 million same period last year. The result
for the first half of 2008 was DKK 246,000 compared to DKK 12.5 million in
2007. 
High fuel prices, higher depreciation and fall in share prices have severely
impacted the result for the first half of 2008 compared to the first half of
2007, which was exceptionally good. 

The fuel costs on scheduled services increased by DKK 11 million in the first
half of 2008 compared to the first half of 2007, which put pressure on
earnings. Market value adjustment on shares resulted in a DKK 5 million gain in
the first half of 2007, but in the same period this year, the result was a loss
of DKK 1.6 million. 

In the autumn of 2007, the company added two aircraft and one helicopter, and
this is reflected in the DKK 10 million increase in depreciation in the first
half of 2008 compared to the same period last year. 

The number of passengers on scheduled services increased by 5,170 in the first
half of 2008, from 92,201 in 2007 to 97,371 this year. The increase in
passengers and higher average income per passenger ensured a growth in revenue
from scheduled services, but the growth was unfortunately not sufficient to
counter the dramatic increase in fuel costs. 

“We have faced several major challenges these past six months, so we are
pleased to earn this modest profit in the first half of the year,” says Mr.
Magni Arge, CEO of Atlantic Airways. 

The company's production of flying hours increased by 22% in the first half of
2008 compared to the same period last year. Aircraft and helicopters were
airborne for a total of 6,817 hours during the first half of 2008 compared to
5,572 hours the same period last year. 

Wet lease activity for other airlines, particularly SAS, is increasing, and
this activity will remain stable for the second half of 2008. 

Total turnover for the first half of 2008 was DKK 250 million. The balance
sheet as of 30 June 2008 was DKK 484 million, which is DKK 95 million higher
than at the beginning of the year. Equity was DKK 211 million, and the solvency
ratio 44%. 

The company maintains its initial profit target for the year, but it must - as
any other airline - continually adjust its costs, in order to counter the
effects of price increases, particularly on fuel. 

The full second quarter and half year 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:

080821 2q 2008 financial report.pdf

080821 2q 2008 announcement.pdf