- EBIT USD 3.3 million and net profit USD 0.6 million on a capacity increase of 8%
- Positive cost development reflected in a 2.4% decrease in unit cost despite high inflation
- Fleet renewal, cost control, and increased operational efficiency contributed to the decrease in unit cost
- Changes in non-production headcount and seasonal adjustments in May and June will result in USD 10 million in future annual savings
- Positive turnaround in the Cargo operation of USD 3.4 million
- Strong liquidity position of USD 465 million at the end of Q2 2024
- Number of passengers 1.2 million
- Passenger unit revenue decreased due to softer demand for travel to Iceland, and increased competition in the transatlantic market
- Flights were launched to three new destinations: Pittsburgh, Halifax, and the Faroe Islands
- Icelandair the most punctual airline in Europe in June by Cirium rankings
Bogi Nils Bogason, President & CEO
"Our flight operations are performing well, on-time performance has been outstanding for five months in a row and Icelandair was named the most punctual airline in Europe in June. It is great to see that our focus on increased efficiencies is already paying off, as reflected in decreased unit cost in the second quarter, despite high inflation and cost increases. We have also continued improving the performance of our cargo operation, and the leasing business continues to perform well, as well as our domestic operation. This success is thanks to the united effort of our employees across all divisions. Demand in the tourist market to Iceland has not been as strong as last year but we have been successful in leveraging the flexibility of our route network to maintain an acceptable load factor by placing a stronger emphasis on the transatlantic market. This change in the passenger mix, however, impacted yields and, thereby, our unit revenue in the second quarter.
Following the past years of post-covid recovery that was completed last year, this year, our focus has been on driving efficiencies in our operations. Numerous improvement initiatives are underway, some of which have already yielded results, and we expect to see further results going forward. We are also continuing to strengthen our revenue generation, using our various revenue streams. We have, for example, strengthened our revenue base through partnership agreements with two airlines during the year - Emirates and TAP in Portugal. Revenue from such partnerships currently accounts for over 10% of the Company's total revenue.
We see great opportunities ahead, including the expansion of our route network with new, longer-range aircraft, which will be the foundation of Iceland's further development as a tourist destination and connecting hub between Europe and North America. Despite fluctuations from year to year, I have full confidence in the future success of Icelandic tourism and, not least, the connecting model we have built up over the decades. The market to Iceland is already showing positive signs and will recover in the near future with the right supporting actions. The current emphasis in our operations will increase our competitiveness, productivity, and efficiency, which with our strong cash position makes us well-equipped for the journey ahead and will support the future success of Icelandair."
Investor presentation 18 July 2024
An investor presentation will be webcast in relation to the publication of the Q2 2024 results at 8:30 GMT on Thursday, 18 July 2024, at http://icelandairgroup.com. Bogi Nils Bogason, President & CEO, and Ivar S. Kristinsson, CFO, will present the Company's results and answer questions. The presentation will take place in English and will be accessible after the meeting on the Company's website and under Corporate News on the Nasdaq Nordic website: http://www.nasdaqomxnordic.com/news/companynews
Contact information
Investors: Iris Hulda Thorisdottir, Director Investor Relations. E-mail:?iris@icelandair.is
Media: Asdis Petursdottir, Director Communications. E-mail:?asdis@icelandair.is
