Atlantic Airways remains on course with solid financial result

Atlantic Airways, the national carrier of the Faroe Islands, has recorded a solid result for the first nine months of 2011, despite a small decline in the third quarter.

Turnover for the quarter was at the same level as the corresponding period during 2010. However, the financial result before tax (EBT) was six per cent down compared with Q3 2010, due to higher fuel costs and a lower contribution from offshore activity in Faroese waters during 2011. There was significant activity in the corresponding period during 2010.
The airline’s EBITDA (earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs) for the third quarter of 2011 amounted to DKK 29.7 million (£3.42 million), compared with DKK 33.2 million (£3.82 million) for the same period last year, a fall of ten per cent. The result before tax for the third quarter of 2011 was DKK 17.9 million (£2.06 million) compared with DKK 19.0 million (£2.19 million) in the same period last year, corresponding to a decrease of six per cent. Revenue in the third quarter was DKK 134 million (£15.42 million), unchanged on the same period in 2010.

EBITDA for the first three quarters of 2011 was DKK 61.9 million (£7.13 million), compared with DKK 51.0 million (£5.87 million) for the first three quarters of 2010 — an increase of 21 per cent. The result before tax for the first three quarters of 2011 was DKK 27.4 million (£3.15 million), compared with DKK 10.3 million (£1.19 million) in 2010 — an increase of 166 per cent for the first three quarters.
“The result in Q3 confirms a continued stable development during the year, with much improved aircraft utilisation based mainly on improved sales of block hours in the ACMI and charter segment, but also due to higher load factors and passenger numbers on scheduled services and a stabilised helicopter segment,” said Magni Arge, Chief Executive. “It is encouraging to witness the growth we have been able to achieve outside the Faroe Islands in the ACMI and charter segment through improving utilisation of marginal capacity.”
Mr Arge reaffirmed the airline’s commitment to growth in 2012, when it is due to take delivery of its first Airbus A319 aircraft. “The new Airbus opens up for new direct routes from Faroe Islands to destinations like Spain,” said Mr Arge.

The last quarter of the year is traditionally a weak financial quarter in the airline industry, but Atlantic Airways’ result after the first nine months of 2011 points to a marked improvement of the full year result for 2011 compared with 2010. Nonetheless, the level of improvement could still be affected by the level of impact from external factors and adverse weather.

Source: Atlantic Airways