Published: 2023-07-20 19:31:35 CEST
Icelandair Group hf.
Interim report (Q1 and Q3)

Icelandair: Profit of USD 13.7 million in Q2 - Highest since 2016

  • EBIT of USD 20.9 million, up by USD 19.6 million year-on-year
  • EBIT ratio 5%, improving by 4.7 percentage points between years
  • Profit of USD 13.7 million compared to USD 3.8 million in Q2 last year
  • Record operating income of USD 414.2 million, increasing by 26% year-on-year
  • Record Q2 unit revenue (RASK) of 8.6 US cents, increasing by 8% year-on-year
  • Leasing revenue up 41% year-on-year resulting in strong profitability
  • Challenging cargo operation had negative effect on EBIT
  • Delays in maintenance projects and implementation of aircraft resulted in one-off cost of
    USD 8 million
  • Capacity increased by 17% year-on-year in the passenger network
  • 1.2 million passengers carried; 19% more than in Q2 last year
  • Load factor of 83.6%, especially strong demand on North American routes
  • Strong operating cash flow resulting in highest ever liquidity position of USD 521.2 million
  • Forward bookings for the next six months strong and above last year


“Thanks to the outstanding work of our employees, we are proud to deliver the strongest results in the second quarter since 2016. Achieving a profit of USD 13.7 million was driven by record passenger revenue, historically high load factor, and improved yields in all our markets. Lower fuel costs due to the efficiency of the Boeing 737 MAX aircraft and lower fuel prices also contributed positively to the results. In addition, our leasing business continued to perform very well and deliver strong profitability. 

Delays in maintenance projects and implementation of aircraft led to aircraft shortage which we addressed by leasing additional aircraft in June to ensure the reliability of our ambitious flight schedule. This led to one-off costs that negatively impacted the Q2 results. Our cargo operation remained challenging, but we firmly believe that we will turn it around within the next few months with our strong focus on restoring profitability. Bearing this in mind, the Q2 results demonstrate a strong underlying financial performance and give us great confidence for the future.  

All in all, the first six months of the year have been eventful as we have prepared for our largest flight schedule yet when it comes to the number of destinations and frequency of flights. We introduced five new destinations, implemented six new aircraft, carried 1.8 million passengers and recruited and trained almost 1,200 employees. 

The prospects for the second half of the year remain favorable with continued strong bookings, particularly from North America. Demand for flights to and from Iceland has been strong over the past months. Capacity through Keflavik airport has also increased sharply to 20% above pre-Covid levels this summer and even more into next winter. This development is expected to impact yields and revenue growth in some markets in the second half of the year. However, we are well equipped to adapt to market conditions at any given time with our valuable infrastructure, very strong liquidity, and excellent team of employees. Our EBIT margin forecast for the full year remains unchanged in the 4-6% range and we therefore expect to deliver net profit for the full year of 2023.” 


An investor presentation will be webcasted in relation to the publication of the results at 8:30 GMT on Friday, 21 July 2023, at https://icelandairgroup.is . Bogi Nils Bogason, President & CEO of Icelandair Group, and Ivar S. Kristinsson, CFO, will present the Company’s results and answer questions. The presentation and Q&A will take place in English. The presentation will be available after the meeting on the Icelandair Group website: https://icelandairgroup.is and under Company News on: http://www.nasdaqomxnordic.com/news/companynews


Icelandair Group hf. 30.06.2023.pdf
Pressrelease Q2 2023.pdf