Atlantic Airways P/F - Årsregnskabmeddelelse

Atlantic Airways back in profit: Net result of DKK 12.3 million in 2010

Atlantic Airways posted a full year net profit of DKK 12.3 million after tax
compared to a loss of DKK 6.6 million in 2009 - a DKK 19 million improvement.
The result before tax was DKK 15.1 million compared to a loss of DKK 8.1
million. EBITDA was DKK 69 million compared to DKK 43.6 million - an
improvement of 58 %. The result before financial items (EBIT) was DKK 19.5
million compared to a loss of DKK 19.4 million the year before - a DKK 39
million improvement. Net sales were DKK 403 million, which is in line with the
previous year. 

The result from Q4 2010 was a profit before tax of DKK 4.8 million compared to
a loss of DKK 15.8 million in 2009. EBITDA for Q4 2010 improved from DKK 7.5
million to DKK 18 million. The net sales improved from DKK 82.9 million to DKK
97.5 million due to an increase of income and activity in all segments. 

The turnaround from a loss of DKK 6.6 million in 2009 to a profit of DKK 12.3
million in 2010 is noteworthy taking into consideration the challenges Atlantic
Airways faced in 2010. Amongst these can be mentioned the high increase of
passenger charges in both Faroes and Copenhagen, and the extraordinary
challenges the airline faced when volcanic activity in Iceland led to closure
of the airspace in April and May. The direct impact on operations from the
airspace closure was no less than 5 million DKK. 

“The entire organization from ground floor to the board has contributed with
hard work and difficult decisions in order to achieve this result,“ says CEO
Magni Arge. “In our turnaround efforts we have focused on improving yield and
utilization as well as driving down costs by reducing the fleet and the
workforce to a level in balance with the production we currently have.” 

“However, Atlantic Airways will not rest on the result achieved last year. The
phase in of a new Airbus aircraft will have a high priority in 2011. Also we
will remain focused on providing the Faroese people with further opportunities
to travel the world and fight all unreasonable charges and taxes as these
induce a negative effect on travel ,” says CEO Magni Arge 

The number of full-time equivalent employees in 2010 was 167 compared to 205 in
2009 

As of 31 December 2010, equity was DKK 227 million, resulting in an equity
ratio of 55 %. 

The Board proposes a dividend to the shareholders of DKK 7,5 million.

Atlantic Airways aims for an improved result in 2011 but the volatile fuel
price causes significant uncertainty. 



For further information contact:

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

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

Attachments:

AA presentation Annual report 2010.pdf

Annual Report 2010 AA.pdf