Icelandair Group hf.
EBITDA forecast changed due to effects of industrial actions
According to Icelandair Group’s (the Company) Investor Relations Policy the Company publishes an EBITDA forecast at the beginning of each year and updates or confirms it when quarterly accounts are published. According to the Company’s Insider Information Guidelines an updated forecast shall be published as soon as it is apparent that the forecast has changed by more than 10%. Although this is not the case now, the Company believes that it is necessary, under the circumstances, to publish an updated EBITDA forecast now that the results for May are ready. The updated forecast takes updated operational assumptions into account and the current booking status.
The updated EBITDA forecast for the year 2014 is USD 138–143 million. The original forecast was USD 140–145 million. The forecast assumes an average EUR/USD cross rate of 1.35 and an average fuel price of USD 1,000/ton for the remainder of the year. The direct effect of the industrial actions is estimated at USD 3.5 million. The updated forecast also takes into account higher salary cost and lower revenue than was anticipated for the remainder of the year. The revenue forecast decreased from last month which is related to the disputes. The forecast does not anticipate that the Company will have to bare any more cost due to industrial actions this year.
Bjorgolfur Johannsson, President and CEO
+ 354 896 1455
Bogi Nils Bogason, CFO
+ 354 665 8801