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%, bettering by 4.7 proportion factors between years.
  Profit of USD 13.7 million in comparison with USD 3.8 million in Q2 final yr.
• Record working earnings of USD 414.2 million, rising by 26% year-on-year
• Record Q2 unit income (RASK) of 8.6 US cents, rising 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 yr.
• 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 following six months sturdy and above final yr.

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

Delays in upkeep tasks and implementation of plane led to plane scarcity which we addressed by leasing extra plane in June to make sure the reliability of our bold ight schedule. This led to one-off prices that negatively impacted the Q2 outcomes. Our cargo operation remained difficult, however we rmly consider that we are going to flip it round throughout 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 long run.

All in all, the rst six months of the yr have been eventful as now we have ready for our largest ight schedule but with regards to 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 skilled virtually 1,200 workers.

The prospects for the second half of the yr 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 via Keavik airport has additionally elevated sharply to twenty% above pre-Covid ranges this summer season and much more into subsequent winter. This improvement is predicted to influence yields and income progress in some markets within the second half of the yr. However, we’re properly outfitted to adapt to market situations at any given time with our precious infrastructure, very sturdy liquidity, and wonderful crew of workers. Our EBIT margin forecast for the complete yr stays unchanged within the 4-6% vary and we subsequently anticipate to ship internet prot for the complete yr of 2023.”

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