Atlantic Airways: DKK 18.6 million result, doubling its cash, and dividend DKK 5 million.

Atlantic Airways Stock Exchange Announcement 1/2009

Atlantic Airways: DKK 18.6 million result, doubling its cash, and dividend DKK
5 million. 

Atlantic Airways' result for 2008 was DKK 18.6 million before tax and DKK 15
million after tax. Cash increased more than twofold from DKK 38 million to DKK
82 million, and the board proposes a DKK 5 million dividend. The company is
also pleased to be the best performing listed airline in the Nordic countries
last year. 

The profit and loss account for 2008 shows a pre-tax result of DKK 18.6 million
and DKK 15 million after tax. This is the 14th year in a row that the company
posts a positive result, and the company is in a strong financial position to
take on challenges ahead. 

In 2008, core operations improved markedly. The result before market value
adjustment, depreciation, and tax was DKK 87 million compared to DKK 65 million
in 2008 - an increase of 34%. 

“This past year had many challenges - both expected and unexpected - so we are
very pleased with our good result, having improved profitability, and also
strengthened our cash flow,” says Mr. Magni Arge, CEO of Atlantic Airways. 

Many challenges
Atlantic Airways' increased its production significantly in 2008. Airborne
hours increased from 11,600 to 15,000 hours, an increase of 32%. At the same
time, the number of full-time equivalent employees increased from 192 to 277.
As if this was not challenging enough, the record fuel prices and global
economic turmoil put a great strain on the company to adapt to new and
unforeseen circumstances. 

Fuel costs on scheduled services increased by DKK 27 million in 2008, or 36%.
Increased investments also lead to an increase in depreciation from DKK 45
million to DKK 60 million. Net financial expenditure was DKK 13,5 million in
2008 compared to net financial income of DKK 9 million in 2007. 

Despite of this, the result for 2008 was satisfactory at DKK 18.6 million
compared to DKK 29 million in 2007. Equity is now DKK 221 million, the equity
ratio is 51%, and cash increased from DKK 38 million to DKK 82 million. 

Atlantic Airways was established in 1987 and has grown steadily since then.
Operations started cautiously in March 1988, with a single aircraft and just
one route, between the Faroe Islands and Copenhagen. Atlantic Airways has
gradually expanded and established new income streams, ensuring the company a
stable economic base. The main activity consists of scheduled service with 
Faroes as a cornerstone, charter operations in Europe and helicopter operations
in Faroese and North Sea waters. Atlantic Airways currently operates seven jet
aircrafts and three medium size helicopters. 

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