Icelandair Q2 Results, highest profit since 2016

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Icelandair reveals 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%, enhancing by 4.7 proportion factors between years.
  Profit of USD 13.7 million in comparison with USD 3.8 million in Q2 final 12 months.
• Record working revenue of USD 414.2 million, growing by 26% year-on-year
• Record Q2 unit income (RASK) of 8.6 US cents, growing by 8% year-on-year
• Leasing income up 41% year-on-year leading to sturdy protability.
• Capacity elevated by 17% year-on-year within the passenger community 2 million passengers carried; 19% greater than in Q2 final 12 months.
• Load issue of 83.6%, particularly sturdy demand on North American routes Strong working money ow leading to highest ever liquidity place of USD 521.2 million.
• Forward bookings for the subsequent six months sturdy and above final 12 months.

Bogi Nils Bogason, President & CEO stated: “Thanks to the excellent work of our workers, we’re proud to ship the strongest ends in the second quarter since 2016. Achieving a prot of USD 13.7 million was pushed by report passenger income, traditionally excessive load issue, and improved yields in all our markets. Lower gas prices because of the efciency of the Boeing 737 MAX plane and decrease gas costs additionally contributed positively to the outcomes. In addition, our leasing enterprise continued to carry out very effectively and ship sturdy protability.

Delays in upkeep initiatives and implementation of plane led to plane scarcity which we addressed by leasing extra plane in June to make sure the reliability of our formidable ight schedule. This led to one-off prices that negatively impacted the Q2 outcomes. Our cargo operation remained difficult, however we rmly imagine that we’ll flip it round inside the subsequent few months with our sturdy deal with restoring protability. Bearing this in thoughts, the Q2 outcomes show a robust underlying nancial efficiency and provides us nice condence for the longer term.

All in all, the rst six months of the 12 months have been eventful as we now have ready for our largest ight schedule but in the case of the variety of locations and frequency of ights. We launched ve new locations, carried out six new plane, carried 1.8 million passengers and recruited and educated virtually 1,200 workers.

The prospects for the second half of the 12 months stay favorable with continued sturdy bookings, notably from North America. Demand for ights to and from Iceland has been sturdy over the previous months. Capacity by way of Keavik airport has additionally elevated sharply to twenty% above pre-Covid ranges this summer time and much more into subsequent winter. This growth is anticipated to impression yields and income development in some markets within the second half of the 12 months. However, we’re effectively outfitted to adapt to market situations at any given time with our priceless infrastructure, very sturdy liquidity, and wonderful crew of workers. Our EBIT margin forecast for the complete 12 months stays unchanged within the 4-6% vary and we due to this fact anticipate to ship internet prot for the complete 12 months of 2023.”

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