Atlantic Airways reached a full-year net profit for 2012

Atlantic Airways reached a full-year net profit for 2012

Atlantic Airways posted a full-year net profit for 2012 of DKK 14.0 million after tax, compared with DKK 22.5 million in 2011. The result before tax was DKK 17.1 million, compared with DKK 27.5 million in 2011. Earnings before depreciation (EBITDA) were DKK 83.4 million in 2012, compared with DKK 74.4 million in 2011, up 12%. Total revenue for the year 2012 was DKK 501 million, compared with DKK 436 million in 2011, corresponding to an increase of 15%. The phase in of a new Airbus 319 and increased capital cost amounted to DKK 13 million. The result was also affected negatively by DKK 11 million because of irregularities.

The result for Q4 2012 after tax amounted to a loss of DKK 2.2 million, compared with a profit of DKK 0.1 million in 2011. EBITDA increased from DKK 12.4 million in 2011 to DKK 14.9 million in 2012. The company’s result in Q4 was affected by a ground handling incident in Copenhagen, which grounded the Airbus for three weeks during the Christmas period, and two unscheduled engine removals on other aircraft. The negative impact on the company’s result for Q4 is estimated to DKK 4.0 million.

The company reached a milestone in March when it successfully introduced the new Airbus A319 after having operated BAE aircraft for 24 years. A major contribution to the imminent success of the new Airbus platform stems from the introduction of the Airbus’ navigational aid system RNP AR 0.1, which has improved safety margins, lowered minima and increased regularity as well as having supported fuel savings by shortening aircraft sector time.

“The new operational platform gave us the opportunity to increase capacity with 10%, offered lower entry fares and a new direct service from Faroe Islands to Barcelona. The initiatives were well received and passenger numbers on scheduled services increased by 15.000 or 8%. However the load factor and utilisation of aircraft fleet decreased and caused a lower contribution from fixed wing operations” says Magni Arge, CEO.

The helicopter operation generated both significant increased revenue and contribution as Atlantic Airways provided Statoil offshore support in Faroese waters and entered a new contact providing the Government SAR and domestic services.

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As of 31 December 2012, total equity amounted to DKK 247 million, resulting in an equity ratio of 49%.

The Board proposes a dividend to the shareholders of DKK 4 million.

Atlantic Airways expects an increase in the full-year result in 2013, compared with 2012.