Icelandair Group hf.
Financial Statement Release
Second quarter earnings amounted to USD 11 million – EBITDA guidance increased
Total income up by 11% between years, to USD 368.9 million
EBITDA USD 42.3 million, as compared to USD 53.9 million last year
Passenger load factor on international routes favourable, at 83.6%, up by 2.4 percentage points between years
34% equity ratio at the end of June
Cash and short-term investments USD 360.1 million, USD 75.4 million in excess of interest-bearing debt
Changes in product offerings and implementation of streamlining measures on schedule
EBITDA guidance for 2017 increased to USD 150-160 million
Björgólfur Jóhannsson, President and CEO
“Second-quarter operations were favourable. The Company's growth continues, and for the first time we transported over one million passengers on international flights in the second quarter, an increase of 13% between years. It is a matter of great satisfaction that our passenger load factor is improving at the same time that our capacity has increased. The number of passengers on Air Iceland Connect grew somewhat between years, and the growth in the Company's chartering and cargo operation has been satisfactory. In the Company's hotels, the number of sold nights grew between years, but hotel room occupancy declined somewhat. We are updating our EBIDTA guidance for the year to USD 150-160 million. The main reason is a favourable currency trend since the last guidance was published.
The booking situation in July and August is good, and the measures taken in our operations are proceeding according to plan. Although these are certainly busy times in the Icelandic tourist industry, the strengthening of the Icelandic króna and significant cost increases have had the effect that the margin in the sector has fallen.
The Company enjoys a strong position and benefits from an outstanding staff, which is the basis for our success.”
For further information please contact:
Björgólfur Jóhannsson, Chief Executive Officer of Icelandair Group, tel: +354-896-1455
Bogi Nils Bogason, Chief Financial Officer of Icelandair Group, tel: +354-665-8801