Icelandair Group hf.
Financial Statement Release
Profitable growth in 2017 in a challenging environment
Year’s EBITDA USD 170.2 million, as compared to USD 219.8 million in 2016
Year's profit after taxes USD 37.7 million, as compared to USD 89.1 million in 2016
EBITDA in Q4 negative by USD 16.9 million, down between years
Total revenue increased by 14% over the 4th quarter
Equity ratio 42% at year-end
EBITDA guidance for 2018 USD 170-190 million
Björgólfur Jóhannsson, President and CEO
“The year’s performance is in line with our last EBITDA guidance. The Company‘s profitable growth continues, and our strong financial position and flexibility enable us to respond to new circumstances and seize new attractive and exciting market opportunities. The Company transported a record number of over four million passengers on international flights over the year.
At the end of this month we will take delivery of our first 737-MAX aircraft. The arrival of the aircraft represents a certain milestone as the start of the renewal of our fleet, a large and exciting undertaking. We have in recent months made some changes in our product offerings with new options for customers, such as Economy Light. Furthermore, flights have been introduced to seven new destinations. Innovations and adaptations of this kind reflect the Company´s flexibility and financial strength, enabling us to respond to the demands of a constantly changing market.
Competition is fierce in all our markets. The booking status for the first half of the year in international transport is good, but there is considerable uncertainty regarding the second half of the year, especially with regard to average fare trends. The Company’s earnings guidance for 2018 reflects this uncertainty, with EBITDA projected at 170-190 million USD.
At the beginning of this year we announced a new structure for the Company. The change will bring about a clearer focus on our core business and at the same time streamline our processes with shorter lines of communications and improved operational efficiency. This will make us better positioned to take on a volatile business environment resulting from advancing globalisation and changes in technology. As usual, the Company‘s talented staff has done an outstanding job and our customers have faith in us. We are grateful for their continuing trust.”
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.