Atlantic Airways avoids impact of soaring fuel prices

Atlantic Airways has limited the impact of rising fuel prices by hedging its purchases, Kringvarp Føroya reported. The cost of aviation fuel has more than doubled since March, from 700 dollars to 1,600 dollars per tonne.

The increase is expected to cost SAS 2.2 billion kroner and could result in a deficit of around 1 billion kroner in the worst case.

Atlantic Airways has hedged its fuel purchases, allowing the airline to keep its fuel expenses relatively stable. However, any new agreement will be based on current prices, which are currently high.

Jóhann á Bergi, chief executive of Atlantic Airways, said oil companies expect prices to fall, meaning it would not be too costly to hedge fuel purchases for the coming year.

SAS, which has recently been restructured, had hoped to make a profit this year but is unlikely to achieve its expected result. Atlantic Airways, by contrast, expects a good result despite turbulence in global markets.