Air Greenland is expecting a full-year pre-tax profit of DKr70-80 million ($10-12 million), after cutting losses in the first half, during which it became wholly-owned by the Greenlandic government.
Scandinavian carrier SAS and the government of Denmark revealed in May that they had each sold their shareholdings – totalling 62.5% of the airline – to the autonomous territory’s governing authorities.
Air Greenland says the first-half performance was “in line with expectations”, with a pre-tax loss of DKr3.2 million – improving on the previous interim loss of DKr12 million.
Revenues stayed flat at DKr623 million, as higher passenger numbers and a fuel surcharge were offset by a decline in charter sales.
Lower maintenance costs helped cut expenditure by 5% to DKr329 million. The airline reduced its net loss, for the six months to 30 June 2019, by more than 75% to DKr1.86 million.
The company’s pre-tax profit for the full year 2018 reached nearly DKr81 million.
Air Greenland adds that it has raised a loan of DKr260 million. “The company is meeting its financial obligations and the capital base is still considered solid,” it says.
It operates a fleet primarily featuring an Airbus A330-200 and a batch of Bombardier de Havilland Dash 8 turboprops.