Atlantic Airways P/F - Financial Statement Release

Q1-Q3 Report 2013: Passenger and revenue growth

Revenue increased 11% to DKK 189.2 million in Q3 2013 from DKK 170.8 million in
the corresponding period in 2012. The increase is mainly attributable to an
increase in passenger numbers on scheduled services and increased charter
activity as well as increased ancillary revenues. 

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) in Q3
2013 increased 2% from DKK 36.8 million in the third quarter of 2012, to DKK
37.4 million. 

The result before tax (EBT) for the third quarter of 2013 was DKK 13.3 million,
compared with DKK 18.1 million in the same period last year and the result
after tax for the third quarter of 2013 was DKK 10.9 million, compared with DKK
14.9 million in the third quarter of 2012. 

The main explanatory factors for the lower result in Q3 2013 are
extraordinarily high cancellation and diversion costs, decreased helicopter
activity and exit costs in connection with redelivery of an aircraft. 

For the first 3 quarters of 2013 EBITDA amounted to DKK 75.1 million, compared
with DKK 68.5 million in the first 3 quarters of 2012, an increase of 10%. The
result before tax for the first 3 quarters of 2013 amounted to DKK 17.6
million, compared with DKK 19.8 million in the same period in 2012 and the
result after tax amounted to DKK 14.4 million, compared with DKK 16.2 million
in the same period in 2012. 

The supply of seats (ASK) on scheduled services in the third quarter was 13%
higher than in the corresponding period last year. Passenger load factor
remained unchanged on 78%. During the first 3 quarters of the year the supply
of seats grew by 10% following mainly to the introduction of Airbus capacity in
Q1. Passenger traffic increased by 9% in total, both in Q3 as well as in the
period Q1 - Q3 2013. 

“Fixed-wing activity increased significantly in Q3. The growth in passenger
numbers on the scheduled network in Q3 of 9% exceeded our expectations, however
a part of this growth spike relates to special events such as the influx of
German supporters visiting in relation to the football match versus Germany in
September. The planned expansion in charter traffic led to an increase of 42%
measured in block hours, despite the closure of charter traffic to holiday
resorts in Egypt in September. The expected charter production in Q4 will
however be at a lower level than planned due to slow recovery of traffic to
Egypt ,” says Magni Arge, CEO. 

The introducton of the second and third A 319 aircraft has triggered an
improved seat economy, increased flight regularity and has opened up new
markets for both scheduled and charter services. The A 319 fleet has been
modified in order to support the groundbreaking RNP AR navigational aid system.
The system has improved the regularity and saved the company a number of
diversions. However, in July severe fog caused unprecedented weather
interruptions over a period of four weeks. The total cost of the interruptions
and delays is estimated to 8.5 MDKK. 

“Without the RNP AR equipped aircraft we would have experienced further 20
diversions and could have incurred much higher costs,” says Magni Arge. 

Atlantic Airways currently estimates the full-year result in 2013 to be
profitable, but lower than the full-year result in 2012. Other risk factors
mentioned in the Risk management section in the 2012 annual report may
similarly affect the financial performance. 



For further information contact:

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

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

Joen Remmer, COO, tel. +298 213702, remmer@atlantic.fo

Attachments:

Q1-Q3 2013 report AA.pdf