Icelandair Group hf.
Financial Statement Release
Good second-quarter results. Good outlook for the year despite negative impact of external factors on EBITDA guidance.
EBITDA in Q2 USD 52.4 million, as compared to USD 50.3 million last year
18% increase in passenger numbers on international flights and good passenger load factor
Total income up by 13%
Profit after taxes ISK 26.2 million, up by 17% between years
Equity ratio 39% at the end of June
Net cash from operating activities USD 119.6 million, as compared to USD 86.7 million last year
Operating conditions set to be more difficult in the second half of the year, as terrorist activities in Europe and the outcome of the Brexit referendum create market uncertainty
Björgólfur Jóhannsson, President and CEO
"The Group's operations over a challenging period were successful and we have never seen better second-quarter results. The scope of the Company's operations has been greatly expanded; to give an example we transported almost 150 thousand more passengers on international flights during the quarter, than the year before. The number of tourists visiting Iceland is still growing and tourism is becoming an increasingly important factor of the Icelandic economy. It is crucial for the development of infrastructure to keep pace with the increase in tourism and for investment to take account of the income being generated for the economy by the sector.
We have now lowered our EBITDA guidance in light of market uncertainties. Terrorist attacks in Europe and the outcome of the Brexit referendum have caused decline in average airfares and created a situation of uncertainty in the markets, rendering air carriers' operating conditions more difficult. Nevertheless, the Group's financial position is strong, and the Company remains flexible despite its rapid growth in recent years. We are therefore well prepared to respond to the challenges resulting from the upcoming market turbulence and also to seize any opportunities that present themselves for the long term.
We are now in our peak tourist season and these are important months in our operations. The Company has grown rapidly in recent years and our staff and partners have performed fantastically, year after year, in serving our customers. The booking position in international flights for the coming months is good and the Company's prospects for the remainder of the year and beyond are favourable despite lower airfares."
For further information, please contact:
Björgólfur Jóhannsson, President and CEO of Icelandair Group
Bogi Nils Bogason, Chief Financial Officer of Icelandair Group