Icelandair Group: Net Profit in Q3 2018 USD 62 millions

Editor -
  • Total income USD 545.2 million, up by 2% year on year
  • EBITDA USD 115.0 million, as compared to USD 155.9 million last year
  • Decline in performance a result of reduced passenger income and high jet fuel prices
  • Equity ratio 36% at the end of September
  • Net interest-bearing debt USD 222.2 million at the end of September
  • Cash and short-term investments USD 184.0 million
  • EBITDA guidance USD 80-90 million

Bogi Nils Bogason, Interim President and CEO:

“Our third-quarter results declined between years, but are in line with the EBITDA guidance published at the end of August. EBITDA amounted to a total of USD 115 million, USD 41 million short of the figure for the third quarter of 2017. Higher fuel prices, low average air fares and a less favourable passenger load factor are the principal reasons for the decline in performance.

A number of measures have been taken to improve the Company’s competitiveness and counteract cost increases, in particular the costs resulting from higher fuel prices. In May 2019 flights will be introduced through a new connection bank in Iceland alongside the Route Network’s current connection bank with a view to creating new growth opportunities for the Company, improving services to passengers and increasing flexibility. The imbalance in the passenger capacity between North America and Europe has also been corrected in the flight schedule for next year, and the Company’s sales and marketing work has been reorganised. Our focus now is on strengthening the Company’s revenue control, with the implementation of a new revenue control system at an advanced stage. The priorities are increased automation, use of digital solutions and enhancement of ancillary revenue. Also, improved utilisation of staff and all operating factors will be key to the Company's future operations.

Our task is clear: to improve Company’s year-round performance. There are numerous opportunities available, both on the revenue and expenditure side. We are confident that the measures that have already been taken and further measures ahead will return improved performance for Icelandair Group for the future.”