Icelandair has today, 7 February 2022, given formal notice of termination of the government-guaranteed credit facility that has been in place since September 2020, effective 15 days from today as per its terms and conditions. The Company has successfully navigated the turbulent two years since the onset of the pandemic resulting in a strong financial position at year-end 2021, which will support Icelandair’s ambitious 2022 flight schedule and the Company’s continued recovery.
On 15 September 2020, Icelandair entered into agreements with Íslandsbanki, Landsbanki and the Icelandic Government regarding a credit facility for up to USD 120 million with a 90% government guarantee and a two-year drawdown period to 15 September 2022. The credit facility was part of the Company’s financial restructuring in 2020 to ensure access to liquidity in case of prolonged difficulties related to the Covid-19 pandemic. The credit facility was vital to complete the financial restructuring, enabling the Company to maintain valuable know-how and preserve the infrastructure necessary for an efficient ramp-up of its operations post Covid. As the leading airline in Iceland and an important employer, a successful recovery of the Company is crucial for Icelandic tourism, economy and society at large.
Bogi Nils Bogason, CEO and President of Icelandair:
“It is gratifying to announce our termination of the government-backed facility almost eight months ahead of schedule and without ever having had to draw on it. The facility was a key component in the successful financial restructuring which was made possible through the coordinated efforts of all major stakeholders. We transported 1.5 million passengers and increased our capacity throughout the year to 65% of 2019 levels despite the continued impact of Covid-19. Alongside the successful ramp-up of our operations, we strengthened our team and recruited almost a thousand employees during the year. As the aviation industry moves closer to normal operations, I am confident that we have what it takes to reach our primary objective coming out of the pandemic – to return to sustainable operating results.