Atlantic Airways P/F - Financial Statement Release

Atlantic Airways reached a full-year result for 2013 after tax of DKK 7.4 million

Atlantic Airways reached a full-year result for 2013 after tax of DKK 7.4
million. The financial performance in 2013 amounted to a lower result compared
with 2012, mainly due to extraordinarily high level of irregularities, a
significantly reduction in planned charter operations to Egypt, decreased
helicopter activity and exit costs in connection with redelivery of an
aircraft. The full-year result for 2013 after tax amounted to DKK 7.4 million,
compared with DKK 14.0 million in 2012. EBITDA decreased from DKK 83.4 million
in 2012 to DKK 81.5 million in 2013. Total revenue increased from DKK 501.3
million in 2012 to DKK 542.2 million in 2013. The number of passengers carried
on scheduled services in 2013 was 225,200, compared with 208,329 in 2012. The
load factor on scheduled services in 2013 remained unchanged at 74%, compared
with 2012. 

The result for Q4 2013 after tax amounted to a loss of DKK 7.1 million,
compared with a loss of DKK 2.2 million in Q4 2012. EBITDA decreased from DKK
14.9 million in Q4 2012 to DKK 6.4 million in Q4 2013. The company's result in
Q4 was affected by lower contribution from ACMI/charter operations due to a
reduction in planned operations to Egypt, decreased helicopter activity, higher
leasing costs and one-off employee costs in connection with changes in the
management group. 

The fleet has been renewed in 2013 with the addition of two Airbus A319, while
two BAE Avro RJ aircraft have left the fleet. The addition of the two Airbus
A319 was decided in connection with a increased charter activity and with the
purpose to improve fixed-wing efficiency. However, due to the violence in Egypt
and subsequent advice against travels to the Red Sea area, the charter
production has been significantly lower than expected. Measurements are
continually taken to try to counterbalance the risk associated with operating
charter contracts to Egypt and the company has further intensified its efforts
in regard to pursuing charter contracts in order to improve capacity
utilization. 

We are proud to note that the company again has been chosen to provide Statoil
with rotor-wing and fixed-wing support in connection with oil exploration in
Faroese waters and that Atlantic Airways again will lease in an operate an
AW139 helicopter. 

The Board of Directors has instructed the company's management to conduct a
strategy review of Atlantic Airways. The revised strategy is expected to be
concluded before summer 2014. 

“We believe that Atlantic Airways is in a strong position to continue to serve
the Faroe Islands with a reliable and competitive product, and we will continue
to reinforce our work in order to meet our customers' and owners' expectations”
says Jørgen Holme, CEO. 

As of 31 December 2013, total equity amounted to DKK 248 million, resulting in
an equity ratio of 51%. 

The Board propose that no dividend will be distributed to the shareholders in
connection with the fact that Atlantic Airways intents to buy the remaining
third of the shares, which is privately held. 

Atlantic Airways expects a clearly better full-year result after tax in 2014,
compared with 2013. 



Atlantic Airways P/F



For further information contact:

Jørgen Holme, CEO, +298 213720 - Jorgen@atlantic.fo

Attachments:

2013-annual report-AA.pdf