Increased turnover, but lower result
Revenue increased 5% to DKK 109.1 million in Q1 2014 from DKK 104.1 million in the corresponding period in 2013. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) in Q1 2014 decreased 67% from DKK 13.4 million in the first quarter of 2013, to DKK 4.5 million.
The result before tax (EBT) for the first quarter of 2014 was DKK -9.6 million, compared with DKK -3.3 million in the same period last year and the result after tax for the first quarter of 2014 was DKK -7.9 million, compared with DKK -2.7 million in the first quarter of 2013
The main explanatory factors for the lower result in Q1 2014 are higher leasing costs associated with the fleet renewal combined with significantly lower charter production than expected due to the violence in Egypt and subsequent advice against travels to Sharm el Sheikh. Furthermore, the seasonal effects of the Easter period, higher maintenance costs, costs in connection with the voluntary offer to purchase the outstanding shares not already owned by Føroya Landsstýri or Atlantic Airways as well as costs in connection with the review of the strategy has affected the result negatively.
The supply of seats (ASK) on scheduled services in the first quarter was 6% higher than in the corresponding period last year. Passenger load factor decreased from 67% to 63%. Passenger traffic decreased by 1% due to the seasonal effects of the Easter period. The largest part of the Easter traffic in 2013 was in March, while all the Easter traffic this year was in April.
Atlantic Airways expects a clearly better full-year result after tax in 2014 compared with 2013, yet uncertainty regarding flights to Egypt, adverse weather and fuel prices may have a negative impact on the result. Other risk factors mentioned in the section ‘Risk management’ may similarly affect the financial performance.
For further information contact:
Jørgen Holme, CEO, tel. +298 213720, [email protected]