Atlantic Airways P/F - Ársreikningur

Atlantic Airways lower activity and cautious optimism

Atlantic Airways Stock Exchange Announcement 6/2010

Atlantic Airways lower activity and cautious optimism
The result before tax for the first quarter was a DKK 6,9 million loss, and
after tax a DKK 5,7 million loss. 

The company's total production decreased by 55% compared to first quarter 2009.
Majority of this was related to a 89% drop in ACMI/charter production.
Helicopter activity off-shore has improved over the winter, but is still at a
lower level then at the corresponding period last year. 

However income from scheduled traffic is better than expected. Total passenger
numbers in the first three months of 2010 on the scheduled services network was
36.000 which was in line with the numbers from the corresponding period last
year. Easter traffic had a positive effect on these numbers. 

”Prior to the eruption in Iceland forward booking was showing a positive trend
and this is still the case, but April and to some extent May has been affected
negatively by disruptions of traffic because of the spread of the volcanic
ashes,”says Mr. Magni Arge, CEO of Atlantic Airways. 

EBITDA was DKK 6,8 million in the first quarter compared to DKK 11.6 million
first quarter 2009. Total revenue for the first three months of this year was
DKK 79 million compared to DKK 101 million same period last year, or 22% lower. 

Several steps have been taken to adapt capacity, reduce fleet and costs, but
the company pursues further improvements by ongoing rationalisation and cost
saving initiatives. 

“It is our firm belief that we are on the right track to adjust our operations
and organisation to a lower level of activity. We are also experiencing a
positive trend in forward bookings but the economic result for the year will be
affected by the recent and potential future disruptions caused by the volcanic
activity. So far it has affected our operations negatively in April by 5 MDKK,”
says Mr. Arge. 

It is an encouragement to future air travel that the construction work on the
extension of the runway at Vagar has commenced in May. Atlantic Airways expects
to take delivery of its first A 319 aircraft in March 2012. 

The company's equity was DKK 211 million as of 31. March, and the equity
ratio 51%. 


For further information contact:
Magni Arge, CEO, tel +298 213700- magni@atlantic.fo
Marius Davidsen, CFO, +298 213703 - marius@atlantic.fo

Viðhengi:

aa 2010 q1.pdf

aaq1-2010-announcement.pdf