Published: 2015-04-29 18:40:54 CEST
Icelandair Group hf.
Financial Statement Release

First-Quarter results surpassed projections

  • EBITDA negative by USD 2.3 million, as compared to negative USD 13.3 million in the first quarter of 2014
  • Improvement between years largely a result of a substantial increase in passenger numbers, a favourable passenger load factor and lower fuel prices
  • Transport revenue increased by 6%, but total revenue fell by 3%
  • Equity ratio was 34% at the end of March
  • Net cash from operating activities was USD 117.7 million, as compared to USD 121.4 million in the preceding year


Björgólfur Jóhannsson, President and CEO

"Our performance in the first quarter surpassed our projections and significantly exceeded the results of the first quarter of 2014. The principal explanation lies in the substantial increase in the number of passengers on our international flight routes and efficient utilisation of both the seating capacity of our aircraft and our hotel rooms; the lower fuel price also has a significant impact on the comparison between years. The capacity increase in the quarter was 12%, but at the same time the number of passengers increased by 19% and the load factor was 79.2%, a first-quarter record.   The utilisation of our hotel rooms was also very good, at 75.2%, as compared to 67.3% in the first quarter of last year. Icelandair Group has been at the forefront in developing tourist services in Iceland outside the tourist season and these occupancy figures from the hotels are evidence of the success of our work. Operation of other business activities of the Group was also successful in the quarter.

The Company's business operations are extremely dependent on external circumstances, such as fluctuations in currency exchange rates and fuel prices. The strengthening of the US dollar against European currencies has a negative impact on the Company's results, particularly during the peak season. At the beginning of the year we issued an EBITDA forecast in the range of USD 160-165 million. The forecast was based on an average EUR/USD cross rate of 1.15 over the year, but updated projections assume an average cross rate of 1.07 in the last nine months of the year. We also assume that fuel prices, net of hedges, will fall from the original projection to 600 USD/ton in the last three quarters of the year. Taking this into account, the EBITDA forecast for the year as a whole remains unchanged despite results exceeding anticipations in the first quarter."


For further information please contact:

Bjorgólfur Jóhannsson, President and CEO
+354 896 1455

Bogi Nils Bogason, CFO
+ 354 665 8801

Icelandair Group hf 31 3 2015.pdf
Pressrelease Q12015.pdf