Published: 2011-11-02 17:15:09 CET
Icelandair Group hf.
Financial Statement Release

Organic growth continues

Third Quarter 2011

  • Total turnover was ISK 35.9 billion, up by 15% from the corresponding quarter of last year.
  • Taking account of companies that exited the Group at the beginning of the year, the increase in turnover corresponds to 20%.
  • EBITDA amounted to ISK 8.7 billion, down by 0.5 billion between years. Equivalent operations yielded EBITDA of ISK 8.9 billion.
  • The EBITDA ratio was 24.1%, as compared to 29.4% over the same period last year.
  • World fuel prices were on average 46% above last years price levels, resulting in a direct cost increase of ISK 2.2 billion.
  • Depreciation was ISK 1.6 billion.
  • The EBITDAR ratio was 29.6%, as compared to 37.4% at the same time last year.
  • Financial costs amounted to ISK 0.5 billion, as compared to ISK 1.2 billion in the preceding year.
  • Profit after taxes came to ISK 5.4 billion, as compared to ISK 5.2 billion over the corresponding period of last year.

 

First nine months of 2011

  • Total turnover was ISK 76.9 billion, increasing by 11% year on year.
  • Taking account of companies that exited the Group at the turn of the year, the increase in turnover corresponds to 17%.
  • EBITDA was ISK 10.5 billion and the EBITDA ratio was 13.7%, as compared to ISK 11.5 billion 16.6% respectively in the preceding year.
  • Equivalent operations yielded EBITDA of ISK 10.3 billion in 2010.
  • The EBITDAR ratio was 20.9%, as compared to 26.4% over the same period last year.
  • Financial costs amounted to ISK 1.1 billion, as compared to ISK 3.0 billion at the same time last year.
  • Net cash from operating activities amounted to ISK 13.2 billion, as compared to ISK 11.9 billion in the first nine months of the preceding year.
  • Total assets amounted to ISK 91.4 billion at the end of the period, and the equity ratio was 36.4%, as compared to 18.6% at the same time last year.

 

Björgólfur Jóhannsson, CEO:

"The strong organic growth continued in the third quarter. The capacity in our international route network increased by 20% and the number of passengers increased by 17% over the same period. The growth is projected to continue in 2012, when Icelandair's flight schedule will become the largest in the company's history, exceeding this year's schedule by 14%. A new year-round destination, Denver, Colorado, will be added and the frequency of flights to other destinations will be increased.

The company's EBITDA in the third quarter amounted to ISK 8.7 billion. Equivalent operations in third quarter 2010 yielded EBITDA of ISK 8.9 billion. World fuel prices in the quarter were 46% higher on average than in the corresponding period in 2010. We are therefore very satisfied with the operating outcome, and in spite of the negative signs in the world economy, Icelandair Group's operating prospects are positive.

We iterate that fluctuations of USD and EUR and fuel prices have significant impact on our results and recent volatility in the market has increased the uncertainty in our forecast. We anticipate higher fuel prices and increased capacity to lead to lower EBITDA in the fourth quarter as compared to fourth quarter last year when EBITDA was ISK 1.1 billion. Our updated forecast for Q4 2011 is that EBITDA in the quarter will be insignificant or negative up to ISK 0.5 billion, resulting in EBITDA for the full year of 2011 to be in the range of ISK 10.0 - 10.5 billion.

 

For further information, please contact:

Björgólfur Jóhannsson President and CEO, Icelandair Group, tel. +354-896-1455
Bogi Nils Bogason, CFO, Icelandair Group, tel. +354-665-8801

 

 


Icelandair Group hf 30 sept 2011.pdf
Pressrelease_Q3_2011.pdf