Published: 2014-07-30 17:43:44 CEST
Icelandair Group hf.
Financial Statement Release

Labour disputes had impact on second quarter operations

  • Profit after taxes USD 22.4 million, as compared to USD 18.5 million in the year before
  • EBITDA amounted to USD 45.2 million, as compared to USD 42.9 million in the preceding year
  • Total revenue increased by 12%
  • Negative impact of the labour disputes on second quarter results amounted to USD 3.5 million
  • Equity ratio 34% at the end of June
  • Net cash provided by operating activities USD 83.6 million, as compared to USD 106.4 million in the preceding year


Björgólfur Jóhannsson, President and CEO

"Wage disputes had impact on our second quarter operations.  As a result of the disputes 157 flights had to be cancelled and bookings had to be altered for over 22 thousand passengers. The resulting loss of revenue and direct cost to Icelandair Group amounted to USD 3.5 million. Icelandair Group's second-quarter profit amounted to USD 22.4 million, up by USD 3.9 million between years. Although results of the international route network operations fell short of expectations as a result of disputes, other business conducted by the Group was successful.  A surge in the number of tourists arriving in Iceland returned good results for our companies in tourist related business.  The performance of the Company's freight operations was good and showed an increase between years.  In addition, the reversal of a provision made for bad debt in the Company's charter operations had a positive impact on financial results.

The Company’s financial position is strong.  Total assets currently amount to USD 947.6 million, and the Company's equity ratio stood at 34% at the end of the quarter.  Interest-bearing debt has been decreasing in recent years and currently stands at USD 60.2 million, while cash and marketable securities amount to USD 283.3 million. The booking situation in international flight operations for the coming months has improved following the end of the wage disputes, and the Group's general business prospects are favourable. Based on current assumptions the year's EBITDA is projected in the range of USD 145-150 million dollars, exceeding the figures announced in June. The improved collecting on claims in charter operations is a significant factor in the increase.”


For further information please contact:

Bjorgólfur Jóhannsson, President and CEO
+354 896 1455

Bogi Nils Bogason, CFO
+ 354 665 8801

Pressrelease Q22014.pdf
Icelandair Group hf 30 6 2014.pdf