Icelandair Group hf.
Financial Statement Release
Results in line with expectations
Total income up by 5% between years, to USD 222.4 million
EBITDA negative by USD 16.2 million
Continued downward pressure on average air fares
14% increase in passenger numbers on international flights and favourable passenger load factor
Income from hotel accommodations nearly doubled between years, amounting to USD 10.4 million, as compared to USD 5.4 million in the first quarter of 2016
Equity ratio 36% at the end of March
Cash and short-term investments amounted to USD 322.9 million, USD 42.3 million in excess of interest-bearing debt
Björgólfur Jóhansson, President and CEO:
The results for the first quarter are in line with the guidance we presented in early February. We have taken a variety of measures in our operations to improve efficiency and increase revenues. Work on streamlining projects is progressing well and in line with plans. We are confident that through these measures we will achieve the aim we presented: to improve the Company's results by USD 30 million on an annual basis when the measures are fully implemented in early 2018.
The change in results between years is primarily a result of declining prices of international air fares. In addition, foreign exchange rate trends have been unfavourable. Income from hotel operations increased significantly between years, and first-quarter room occupancy has never been better despite significantly increased availability.
The Company’s booking flow is strong, but due to the downward pressure on average air fares, we are anticipating challenging conditions this year. Nevertheless, we are projecting moderate growth; the increase in the number of tourists visiting Iceland is expected to continue, new destinations have been added, the outlook for hotel operations is favourable and the Company's cargo operations are returning good results. The Company’s financial position is very strong and it is therefore well equipped to take on any external fluctuations and seize opportunities that may arise in the market. Since our last EBITDA guidance, external factors in the Company’s operations have improved slightly resulting in an increase in the EBITDA guidance to USD 145-155 million.
For further information please contact:
Björgólfur Jóhannsson CEO, Icelandair Group, tel. +354-896-1455
Bogi Nils Bogason, CFO, Icelandair Group, tel. +354-665-8801