Atlantic Airways DKK 17 million pre-tax profit and improved core operations

Atlantic Airways Stock Exchange Announcement 27/2008

Atlantic Airways DKK 17 million pre-tax profit and improved core operations

Atlantic Airways' pre-tax profit for the first nine months of the year was DKK
17 million, and net profit was DKK 14 million. Core operations improved
significantly over the first nine months this year compared to the same period
last year 

The result before depreciation (EBITDA) was DKK 73 million for the first nine
months of 2008 compared to DKK 61 million the same period last year, so that
core operations improved by DKK 12 million. 

Net profit for the first nine months this year was DKK 14 million, compared to
DKK 29 million for the same period last year. 

The decrease in net profit is due to market value adjustment of shares, which
due to the international financial crisis is much worse than last year. 

The CEO of Atlantic Airways, Mr. Magni Arge, is pleased with the company's
result: 

”Many airlines have been severely tested by the turmoil in the global financial
sector and the volatile fuel prices this year. Atlantic Airways has so far
managed to adjust its operations to the changed circumstances, and is therefore
able to show a good result and an improvement in core operations,” he says. 

Atlantic Airways' total production increased by 30% during the first nine
months of 2008 compared to the same period last year. Aircraft and helicopters
were airborne for a total of 11,449 hours this year compared to 8.793 hours
last year. 

The increase in production was mainly due to increased charter operations. Over
the first 3 quarters of this year, charter operations increased by 2,602 hours
to 5,781 hours. Most of the charters are for SAS, and the increase was
especially notable in the third quarter. 

Total passenger numbers on Atlantic Airways scheduled services increased by
4,412 in the first nine months of 2008, from 167,345 to 171,757. 

The company's balance sheet total as of 30 September 2008 was DKK 448 million,
which is an increase of DKK 58 from the beginning of the year. Equity was DKK
224 million, and the equity ratio 50%. 

The outlook for 2008 is fair. The company estimates a result before tax and
market value adjustment in the range of DKK 20-25 million. 

”There is every indication that next year will see a weakening economy, both
abroad and domestically, and the company must therefore continue to evaluate
which adjustments to capacity, prices, and the level of service are required by
the circumstances,” says Mr. Magni Arge. 

Atlantic Airways is very disappointed by the Government's renewed attempt to
ban duty-free imports of tobacco. Such action directly affects the company's
operations, and will also affect the income from duty-free sales of the Vágar
Airport Authority. 

The full third quarter and first 3 quarters report for 2008 can be seen on the
company website www.atlantic.fo and is also attached to the NASDAQ OMX stock
exchange announcement. For further information contact Magni Arge, CEO, tel
+298 341002- magni@atlantic.fo or Marius Davidsen, CFO, +298 341032 -
marius@atlantic.fo