Icelandair Group hf.
Financial Statement Release
Strong start of the year overshadowed by COVID-19
The headline of prior announcement was changed.
- Continued EBIT improvement year over year in January and February of USD 21.5 million
- The COVID-19 pandemic and multiple travel restrictions had a significant impact on revenue and earnings in March
- COVID-19-related one-off cost in the quarter amounted to USD 181.0 million
- EBIT negative by USD 208.5 million, down by USD 148.9 million
- Net loss of USD 240.2 million
- Equity amounted to USD 191.2 million at the end of the quarter. Equity ratio, excluding Icelandair Hotels, was 18%
- Total liquidity of USD 281.0 million at the end of March 2020
- Focus on measures in response to the COVID-19 pandemic to strengthen the Company’s financial position and liquidity to ensure its long-term prospects and viability
Bogi Nils Bogason, President and CEO:
“The financial results of the first two months of the year were in line with expectations, improving significantly between years, where the focus on improving the profitability of our route network kept on materializing as in previous months. However, the results in March were significantly below expectations due to the impact of the COVID-19 pandemic on our operations from early March onwards. We are facing considerable uncertainty for the future and have had to take difficult but necessary measures to respond to the situation and prepare the Company for an extended period of limited operations. At the same time, we are focusing on strengthening the long-term competitiveness of the Company by financial restructuring and preparing for the issuance of new shares.
I am convinced that there will be ample opportunities for Iceland as a tourist destination and as a connecting hub between Europe and North America when these unprecedented circumstances have passed. By securing a competitive long-term capital structure of the Company and using the flexibility of the Icelandair route network that we have built up over the decades, we will be in a strong position to scale up quickly as soon as markets open again. Our efforts will be essential to drive the recovery of the Icelandic tourism industry and thereby the Icelandic economy.”
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