Atlantic Airways P/F - Fyrirtækjafréttir

Atlantic Airways decline in activity - but profitable half year

Atlantic Airways decline in activity - but profitable half year

Atlantic Airways had a loss of DKK 1.5 million for the second quarter but
earned  DKK 10 million profit after tax for the first half of 2009 due to
financial income in the first quarter. Revenue for the first half of the year
decreased from DKK 250 million to DKK 209 million. The level of activity 
measured in flight hours declined by 21% in the first half year and by 41% in
the second quarter when compared to the same periods last year. 

The decrease is most evident in charter operations on behalf of other airlines.
The contract with SAS expired at the end of May and the charter market has
weakened considerably since the onset of the financial crisis. The off-shore
helicopter operations also decreased this spring. 

Even though there was also a decrease on the scheduled services to and from the
Faroe Islands, passenger numbers are more stable, with a 9% decrease in the
first half of the year but only a 7% decrease in the second quarter. 

The company is adjusting to the lower level of activity by returning one leased
aircraft, and another leased aircraft will be returned in the autumn. As a
consequence, the number of crew employed has been adjusted to the expected
level of activity. 

 “We anticipate a further decrease within charter operations and helicopter
operations abroad, while the scheduled services to and from the Faroe Islands
are expected to maintain their current level. This affects the company's
financial performance and measures must be taken to adjust our operations,”
says Mr. Magni Arge, CEO. 

Equity was DKK 231 million as of 30 June and the equity ratio was 50%. The
company's cash flow is good - available cash was DKK 129 million on 30 June
2009, while the company's long-term debt was DKK 140 million. 



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

Attachments:

aa h1 09.pdf

h1 09 announcement.pdf