Published: 2016-02-08 17:51:36 CET
Icelandair Group hf.
Financial Statement Release

Looking back on a good year

  • Profit at USD 111.2 million, up by USD 44.7 million, or 67%
  • EBITDA in 2015 at USD 219.0 million, as compared to USD 154.3 million in 2014
  • Operating revenue increased by 2% between years. Calculated at a fixed exchange rate the increase in revenue was 12%
  • EBITDA in Q4 positive by USD 20.1 million, as compared to a negative outcome of USD 1.5 million over the corresponding quarter of last year
  • Equity ratio at year-end 2015 47%, as compared to 43% at year-end 2014
  • Cash and cash equivalents in excess of interest-bearing debts at year-end 2015 amounted to USD 148.6 million
  • The Board of Directors proposes a dividend payment of ISK 3,500 million to shareholders in 2016, corresponding to ISK 0.70 per share


Björgólfur Jóhannsson, President and CEO

"The Group performed well in 2015, with results exceeding management projections from the beginning of the year and EBITDA at the upper limits of the Company's most recent earnings guidance. A number of interacting factors contributed to the strong performance, including falling fuel prices, increased demand in the North Atlantic market – which was met by increased capacity – and good results from charter and cargo operations. Also, hotel room occupancy has increased between years.

In recent years we have followed a clear strategy designed to ensure the Group's long-term growth. We want the Group's organic growth to be sustainable and geared to prevailing circumstances at any time. In recent years we have also focused on strengthening the Company's operations outside the peak season and the substantial improvement in fourth quarter operations is therefore a matter of great satisfaction. A strong equity position and underlying cash flow will underpin our ability to undertake profitable investments and improve our competitiveness for the long term. Since 2010 Icelandair Group's operations have shown a positive momentum, with income growing by USD 422 million, from USD 718 million in 2010 to USD 1,140 million in 2015.

The prospects for Icelandair Group’s operations in 2016 are also favourable. Last year the Group presented its international flight schedule for 2016, which assumes an increase in seat kilometres of 18% between years.  Sales have been strong since that time, and in fact the inflow of bookings has been so strong that we have decided to add an additional Boeing 757 to our fleet, bringing the total increase in seating capacity to 24%. The EBITDA guidance for 2016 projects EBIDTA in the range of USD 245-250 million. Further growth is expected in the market to Iceland.  Growth is also expected in the via market between Europe and N-America. The Group will continue the ongoing vigorous expansion of its hotel business in downtown Reykjavik. Prospects in the Icelandic tourist industry are excellent, and we also believe that the outlook for cargo and charter operations in 2016 is encouraging. It is important to bear in mind that external factors, such as fluctuations in fuel prices and the currency markets, can significantly impact the Group's performance.

Our staff has in recent years done outstanding work on taking the Group forward and the results achieved in our operations last year is the outcome of that work. We are all grateful for this effort."


For further information, please contact:

Björgólfur Jóhannsson, President and CEO of Icelandair Group
tel: +354-896-1455

Bogi Nils Bogason, Chief Financial Officer of Icelandair Group
tel: +354-665-8801

Icelandair Group hf 31 12 2015.pdf