WOW air: Nine months 2018 results

Revenues for the period January to September 2018 were USD 501 million and increased by 31% as compared to the same period last year. Total loss for the period was USD 33.6 million compared to USD 13.5 million loss for the same period last year.

Loss for the period USD 33.6 million
EBITDA USD -18.9 million, as compared to USD 8.8 million last year
Equity ratio 7% at the end of September

The Board of Directors and the Chief Executive Officer draw attention to notes 3 and 11 that accompany these financial statements which contain information on events after the reporting period and the group‘s continued going concern.

On 24 September 2018, WOW air hf issued senior secured floating rate bonds on the Nordic bond market in an amount of EUR 60 million within a total framework of EUR 100 million. Since the date of the bond issue, a number of external and internal events have worsened significantly and the company is now working on securing its long term funding.

During and following the bond issue, the company received negative publicity about the financial health of the company which ended up having a more negative impact on the company's sales, credit position and cash flows than anticipated.

Fuel prices continued to increase in the weeks and months after the bond issue putting further pressure on the company's financial outlook. As a result, management has diligently been working to raise additional funding and working with interested investors and now has agreed in principle for Indigo Partners LLC to invest in WOW air, contingent on the successful completion of due diligence.

This information is information that WOW air hf. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 20:45 GMT on November 30, 2018.