Pre-tax profit was DKK 29 million, with profit of 23.8 million after tax. The
company pays out DKK 6 million dividend to shareholders. Equity increased to
DKK 214 million, which is 10% higher than market value.
2007 was a good year in financial terms for Atlantic Airways. Profit after tax
for the year was DKK 23.8 million, and pre-tax profit was 29 million. This is
best result so far in the company's 20-year history. The result for 2007 is a
six-fold increase on the result for 2006, when profit after tax was 4 million.
Half the company's revenues derive from abroad, with the remaining half earned
on the domestic market.
The main reasons for the good result are to be found in strong operational
performance, and also from growth in financial income. Load factors on scheduled
flights increased significantly, the number of charter flight hours was stable,
and the helicopter activity experienced robust growth.
The company posted some non-recurring charges to the profit and loss account
during the year - such as costs related to the privatisation and listing of the
company. The weather hampered flight operations in 2007, particularly in the
second half of the year. Costs associated with irregular flights increased to
just under 14 million, which is twice as much as in 2005.
Revenue increased from 519 million to 539 million. The board of directors
proposes to pay a total of DKK 6 million in dividend. After payout of dividend
equity increased from 196 million to 214 million, which is 10 % higher than the
current market value of the company.
Provided the current economic climate prevails, the company estimates the profit
for 2008 to be in the range from 20 to 25 million. The volume of scheduled
flight activity is expected to be on the same level as in 2007, while the number
of charter flight hours is expected to increase significantly, but gross margins
will be lower. The outlook for helicopter operations is fair.
The company is facing increasing levels of cost, and cannot avoid to review
prices on certain services. That said, the company will maintain strict control
of its costs in order to ensure healthy operational performance, and in 2008
Atlantic Airways intends to improve on its result before financial items for the
past year. The company does not expect significant financial income in 2008. The
Board of Directors and the Management are pleased with the strong performance in
2007.
The full Annual Report for 2007 and a presentation of the annual report can be
seen on the company website www.atlantic.fo and is also attached to the OMX
stock exchange announcement.
For further information contact Magni Arge, CEO, tel +298 213700 -
magni@atlantic.fo or Marius Davidsen, CFO, +298 213703 - marius@atlantic.fo
