DKK 115m planned for aviation rescue capital

As reported yesterday, a government rescue package for the Faroese aviation industry will be taken up in Parliament next week.

The government has now announced a proposal seeking to grant a total of DKK 115 million in additional capital aid for Atlantic Airways and Vágar Airport, both of which are state-owned companies.

The proposal seeks to grant DKK 100 million to the airline and DKK 15 million to the airport.

>> SEE ALSO Flight passenger numbers plummet by 94 percent

Atlantic Airways CEO Jóhanna á Bergi today announced an expected deficit this year of DKK 140 million, and a projected DKK 42 million deficit for next year.

The airline’s liquidity is expected to drop by DKK 59 million in 2020/2021, and the owner equity is expected to drop by DKK 173 million in 2020/2021. Last year’s 34-percent solvency is estimated to drop to 16 percent in 2021.

Some 350,000 passengers travelled with Atlantic Airways last year. This number is expected to drop to 160,000 by the end of this year.

The projections for next year are somewhat more optimistic, with a projected decrease of 27 percent on last year’s passenger numbers. This figure is predicated on an effective Covid-19 vaccine being found soon, the fleet of aircraft being reduced from four to three and Parliament approving the rescue package.

Translated by prosa.fo