Atlantic Airways P/F - Financial Statement Release

Half Year Report 2013: Passenger growth and steady profitable result

Revenue increased 5% to DKK 129.5 million in Q2 2013 from DKK 122.8 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 duty-free sales. 

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) in Q2
2013 decreased 1% from DKK 24.7 million in the second quarter of 2012, to DKK
24.3 million. 

The result before tax (EBT) for the second quarter of 2013 was DKK 7.6 million,
compared with DKK 6.9 million in the same period last year and the result after
tax for the second quarter of 2013 was DKK 6.2 million, compared with DKK 5.7
million in the second quarter of 2012. 

The main explanatory factors for the higher result in Q2 2013 are the increased
number of passengers and higher load factor on scheduled services. However, the
result in Q2 2013 was also affected by decreased helicopter activity. 

EBITDA in the first half of 2013 were DKK 37.7 million, compared with DKK 31.7
million in the first half of 2012, an increase of 19%. The result before tax
for the first half of 2013 amounted to DKK 4.3 million, compared with DKK 1.7
million in the same period in 2012 and the result after tax amounted to DKK 3.5
million, compared with DKK 1.4 million in the same period in 2012. 

The supply of seats (ASK) on scheduled services in the second quarter was 1%
lower than in the corresponding period last year due to adjustments in
capacity. Passenger traffic (RPK) on scheduled services increased 8% in the
same period resulting in an increase in passenger load factor (PLF) from 71 to
78%. During the first half the supply of seats grew by 7% owing to the
introduction of Airbus capacity in Q 1 and passenger traffic increased by 9% in
total. 

“Growth in traffic has been significant although there is still room for better
loads in the low season”, says Magni Arge, CEO. Growth has been driven by
low-fare campaigns and supported by growth in capacity in Q1. 

In June, the second Airbus was introduced to service both the route network to
the Faroes and charter operations out of Denmark. Like the first aircraft it
was also modified to support the groundbreaking RNP AR navigational aid system.
The system has improved the regularity and saved us a number of diversions.
However, in July, the severe fog interrupted operations consistently over a
period of four weeks resulting in 54 diversions and cancellations as well as a
further 70 delays. 

Without RNP AR equipped aircraft we would have experienced a further 20
diversions. The total cost of the unrecedented weather interruption in July is
estimated at between 7.5 and 8.5 MDKK .” says Magni Arge. 

Atlantic Airways currently estimates that the full-year result in 2013 will be
about the same level as in 2012, yet fuel prices, adverse weather, and advice
against travel to Egypt may have a negative impact on the result. 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:

AA H1 2013 report.pdf