Published: 2016-04-28 18:03:58 CEST
Icelandair Group hf.
Financial Statement Release

EBITDA positive in first-quarter

  • EBITDA positive by USD 1.1 million, as compared to a negative outcome of USD 2.3 million last year
  • Positive impact of low fuel prices on performance
  • 21% increase in passenger numbers on international flights and favourable passenger load factor
  • Total revenue up by 14%
  • Equity ratio 37% at the end of March
  • Net cash provided by operating activities USD 148.8 million, as compared to USD 117.7 million in the preceding year


Björgólfur Jóhannsson, President and CEO

"The year is off to a good start. The first quarter of the year is always difficult, as many of the Company's expenses are incurred in the course of the quarter which relate to the increased scope of business in the peak season, so it is very satisfying that the Group's EBITDA for the first quarter is now positive, the first time since 2010. Passenger numbers on international flights increased significantly between years and the passenger load factor continues to improve. Our hotel room occupancy was good over the quarter and other business activities of the Company also showed success. Wage costs increased by 25% between years as a result of the increased scope of our operations, contractual wage increases and the strengthening of the Icelandic króna against the US dollar.

The outlook for Icelandair Group's international Route Network continues to be favourable. The booking status for the summer is in line with expectations, and Icelandair will take into commission two Boeing 767 widebody aircraft in the coming weeks. A Canopy Reykjavik City Center, hotel of 112 rooms will open downtown Reykjavik in early June in co-operation with the Hilton Hotel chain. Also, Air Iceland has taken into use two of the three Bombardier aircraft that will replace the company's Fokker aircraft. The growth in the number of tourists visiting Iceland presents an exciting challenge for the Company's staff and management, and it is clear that the infrastructure of Iceland’s tourist services will be put to a strenuous test in the coming summer. I am confident that the experience and knowledge of Icelandair Group's staff will prove as valuable to the Company as it has in the past.

Fuel prices have increased somewhat from their lowest point in January and we are now assuming a 14% higher price on average for the remainder of the year than at the time when we issued our EBITDA forecast in early February. Increased expenses, especially increased wage costs, and fare price reductions in excess of earlier projections weigh heavily in the decision to lower the Company's EBITDA guidance from USD 245-250 million to USD 235-245 million."


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 3 2016.pdf
Pressrelease Q12016.pdf