Icelandair Group hf.
Better results in Q1 2015 than was forecasted
According to a draft Interim Financial Statement for Q1 the results will be better than forecasted at the beginning of the year, mainly due to increased sales and better utilisation. EBITDA will be negative in the range of USD 2-4 million. The load factor on international flights was 4.9 percentage points higher than in Q1 2014 and utilisation of hotel rooms was 7.8 percentage points higher. On the other hand EUR/USD has been more unfavourable than expected.
The prospects for the full year are favourable and bookings for the high season look good. The forecast for 2015 now assumes that EUR/USD will be 1.07 on average for the last nine months of the year but the forecast that was published in February assumed that it would be 1.15. The strengthening of the USD against the European currencies has and will have a bad influence on the company’s results, especially during the high season. Better results in Q1 leads to an unchanged forecast for the full year, despite unfavourable development in currency rates. We anticipate that EBITDA will be in the range of USD 160-165 million. The results are very sensitive to external factors such as currency and fuel price fluctuations and uncertainty in the labour market in Iceland can have significant impact on the results.
The Interim Financial Statement for Q1 2015 will be published on 29 April and a presentation meeting will be held on Thursday 30 April 2015 at Icelandair Hotel Reykjavik Natura at 16:30 in Room 3.
For further information please contact:
Bjorgólfur Jóhannsson, President and CEO
+354 896 1455
Bogi Nils Bogason, CFO
+ 354 665 8801