Air Greenland's Board of Directors has just approved the Group's half-year report 2024 at its board meeting on 11 September and expresses satisfaction with the result, which shows a loss of DKK 15.8 million. It is normal for the company to generate a profit in the second half of the year. Due to the expectation of lower growth and increased costs in connection with the transition to new infrastructure with new airports, the Board of Directors downgraded the expectations for the result for the year. There are still high costs for irregularities and unplanned maintenance on equipment.

The interim financial statements for Air Greenland and its subsidiaries (hereafter the Group) for the period 1 January to 30 June 2024 show a loss of DKK 15.8 million. Equity amounted to DKK 732.5 million as of 30 June 2024.

The financial statements show a loss before tax of DKK 21.1 million, which is a reduction of DKK 29.4 million compared to the same period last year (2023: DKK +8.2 million), which was positively affected by the sale of fixed assets (A330 Norsaq and B212s). Revenue increased by 4 percent to DKK 854.5 million, driven by more travellers. The financial development for the period shows that total costs including depreciation and amortisation increased by DKK 37.4 million, which is attributed to new fixed assets, increased production and the generally increasing costs.

As of 30 June 2024, almost 4,000 scheduled flights were cancelled due to weather, which is on par with the same period last year. Regularity for scheduled fixed-wing flights is 77%, compared to 79% in 2023, and is mainly due to bad weather.

"In 2024, the weather will continue to pose a significant challenge to traffic operations, which reduces capacity utilisation and increases costs, and it is not easy to predict weather-related expenses, he points out.

In addition to operational issues, costs related to the transition to new infrastructure and unplanned maintenance have increased.

"This is a challenge, which is why it's important to exercise due diligence," adds Malik Hegelund Olsen.

Other external operating income decreased by DKK 25.2 million due to the sale of fixed assets in 2023, while staff costs increased by DKK 22.8 million and the Group had a total of 704 full-time employees during the period, which is an increase of 3.6%.

The Board of Directors' full-year guidance for 2024 has been revised downwards based on the half-year results.

" We expected a full-year profit of DKK 90-105 million, but based on the first half-year and expectations for the second half-year, we now expect a profit before tax of DKK 50-65 million for the full year 2024," he says.

"At the beginning of 2024, a credit facility of DKK 275 million was established, primarily to finance capital expenditure, and this facility has not been utilised during the period due to general delays in planned investments.

The balance sheet has increased from DKK 2,252.4 million to DKK 2,357.4 million, which can be attributed to an increase in fixed assets and an increase in current liabilities, respectively.
He points out that despite the challenges, Air Greenland maintains a solid capital base with an equity of DKK 732.5 million and a solvency of 31.1 per cent.

"Our capital resources meet our financial obligations and the foundation is still considered solid. The Group is preparing for the transition to the new infrastructure with the opening of the international runway in Nuuk, but also later Ilulissat and Qaqortoq airports. This marks the beginning of a new era for Air Greenland and the country as a whole, where competition will be felt in earnest. We are excited for the future," concludes Malik Hegelund Olsen.

To get the interim report H1 2024 click on picture