Atlantic Airways P/F - Company Announcement

Atlantic Airways Half Year Report 2010: Positive trend dampened by ash cloud

Atlantic Airways: Positive trend dampened by ash cloud

Atlantic Airways result in Q2 was a deficit of DKK 1.5 million, but the
company would have posted profit if the cost related to the ash cloud is
adjusted for. The airspace closure in April and May had a direct impact on
earnings of around DKK 5 million. Ahead of this the airline already faced very
challenging conditions because of a substantial decline in the ACMI market,
hiking fuel prices and increased airport and passenger fees.  Atlantic Airways
staff  handled the extraordinary challenge from the ash cloud in a remarkable
way and maximised the possible outcome of an unprecedented situation. 

The second quarter deficit of DKK 1.5 million is in line with the result the
previous year.  EBITDA was almost unchanged at DKK 11.0 million while the
turnover fell from DKK 107.5 million to DKK 92.8 million as a result of lower
activity.  EBITDA for the first half of 2010 was DKK 17.9 million compared to
DKK 22.5 million for the first half of 2009. The result before tax for the
first half was a deficit of DKK -8.7 million compared to DKK 12.2 million in
profit the previous year which was affected by extra ordinarily high financial
income. 

“Despite all the external challenges we are on the right track in our
turnaround from red to black numbers ,” says Magni Arge, CEO. He continous:
“Reducing capacity, adjusting supply, lowering costs and managing yield as well
as an increased activity in the air logistics supporting oil activity is
turning the balance into our favour. The third quarter generally generates the
highest income during the year because of the high season and we expect
turnover to increase compared to the same period last year. For the full year
2010 we expect a healthy improvement of EBIT and a better net result providing
that external factors such as fuel and currency, remain at the same level.“ 




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

Attachments:

atlantic airways h1 2010.pdf