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Martinair Reports Strong Financial Year in 1996; Operating Revenues Increase Despite Tough Competition In Key Market Segments

BOCA RATON, Fla., May 8 /PRNewswire/ -- Martinair closed 1996 with a pre- tax profit of $7.4 million and a net profit of $2.8 million. Martinair reported an 8% increase in revenue over 1995. Total net sales in l996 reached $705 million.

Compared to 1995*, the decline in profits is attributed in part, to a sharp increase in fuel costs and an adverse price and dollar effect. An additional factor impacting profits was fierce competition in several of Martinair's key markets world-wide.

However, despite these adversities Martinair managed to show healthy growth. The number of passenger kilometers increased by 4% from 9.1 billion to 9.5 billion. Freight traffic grew by a substantial 25% from 122,000 tons in 1995 to 152,000 tons in 1996.

In October 1996 the fifth MD-11 entered the fleet. This freighter, with a capacity of 90 tons, provided sufficient growth for freight traffic. In addition, for the first time in the Company's 39 year history, most of the convertible fleet operated in cargo configuration: three B747s, and four MD- 11s. This capacity enabled the opening of new cargo routes in North and South America, Africa. and Guangzhou, in the People's Republic of China.

Martinair's influence, in South America has been strengthened by its acquisition of 40% of Colombian airline, Tampa (Transportes Aereos Mercantiles Panamericanos S.A.), a leader in the South American freight market. To support its sales and marketing activities in Latin America, Martinair also acquired an interest in Martin Aviation Group (M.A.G.), a cargo sales and service representative with headquarters in Miami, FL and local offices in seven of Martinair's Latin American gateways.

At the end of 1996, Martinair's wide-body fleet consists of: 2 B747-20OCs, 1 B747-200F, 4 MD-11CFs, 1 MD-11F and 6 B767-300ERs. The average age is less than 4 years. Looking to promote the youth of its fleet and in anticipation of its 40th anniversary in the airline industry, Martinair has recently adopted as its bi-line, Forty Years and Still Flying Young.

*NOTE: 1995's performance at the current rate of Dutch Guilders 1.7445 to US Dollar $1.00 shows a pre-tax profit of $34.5 million, a net profit of $25.8 million and total net sales of $653 million for 1995.

SOURCE Martinair
 -0- 5/8/97

/CONTACT: Janice Holden, Vice President, Marketing & Commercial Affairs, Martinair, 561-391-6165, ext. 119/

CO: Martinair ST: Florida IN: AIR SU: ERN

KW-TL -- FLW020 -- 0465 05/08/97 16:50 EDT
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Publication:PR Newswire
Date:May 8, 1997
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