Icelandair Group hf.: COVID-19 and Travel Restrictions

As previously announced, the COVID-19 outbreak and multiple travel restrictions have resulted in a significantly decreased demand on the markets of the Company and are negatively affecting bookings.

During recent days the Company has adjusted capacity of up to 30%. It is likely that the capacity will be  reduced even further while such extensive travel restrictions are in effect and the situation might change quickly. The situation is closely monitored by the Company and various measures have been taken according to guidelines of the health authorities to ensure the health and well-being of our passengers and employees.

The outlook for the summer season is uncertain but currently the Company assumes that capacity will be at least 25% less than previously announced. The Company’s focus, however, is on maintaining the flexibility needed to make further adjustments according to the development of demand.

The financial effects of the COVID-19 outbreak for Icelandair Group are still uncertain. The total liquidity of the Company amounted to USD 301.6 million at year-end 2019 and still remains at a similar level today. However, the COVID-19 outbreak will have negative effects on cash flow in the upcoming weeks which the Company will seek to mitigate through various measures such as reducing network capacity and working with labor unions on actions to reduce salary cost significantly.