Icelandair: The highest revenue quarter ever – Profit of USD 85 million in Q3 2023
October 19 2023 - 11:39AM
Icelandair: The highest revenue quarter ever – Profit of USD 85
million in Q3 2023
• Profit of USD 84.5 million, up by USD 26.6 million
year-on-year• EBIT of USD 112.0 million compared to USD 92.7
million last year• Total revenue of USD 560.4 million, the highest
in history in one quarter, and increased by 17%year-on-year• Record
Q3 unit revenue (RASK) of 9.3 US cents, increasing by 1% between
years; passengerunit revenue increased more, by 3%• Cargo operation
had a negative impact on EBIT by USD 6.7 million• 1.5 million
passengers carried• 16% increase in the market to Iceland• Equity
ratio increases to 21% compared with 19% at the beginning of the
year• Strong liquidity position of USD 423.7 million• EBIT ratio
for the full year 2023 forecasted 3.3 - 4.3%
BOGI NILS BOGASON, PRESIDENT & CEO„We are pleased to deliver
such strong results in our largest and most important quarter.
Profits were driven by strong revenue generation in our passenger
network resulting in the strongest revenue in one quarter in our
history. Our route network operations were robust in the quarter
with improved on-time performance. Our flight schedule was also the
largest ever in terms of trips. We transported 1.5 million
passengers to 49 destinations in Europe and North America. We
recruited around 1,000 employees for the high season, bringing the
total number of employees to around 4,400 during the summer. Our
cargo business continued to be challenging and negatively impacted
our financial performance. We are taking actions to improve the
operation, including adjusting capacity to demand. However, the
results of our leasing operation continued to be favorable. The
outlook in our passenger network is good and the booking status
throughout the year and into next year is stronger than at the same
time last year. We see continued strong demand in the tourist
market to Iceland, especially from North America. Rapid growth has
characterized our operations in the past years with our flight
schedule almost tripling in the past two years. We are expecting
moderate growth next year and therefore see opportunities to
improve operational efficiency. We will increase our capacity by
around 10% next year and will add frequency to existing
destinations as well as add some new and exciting ones that will be
announced soon. With our strong financial position, clear strategy
and focus, extensive sales network and strong airline partnerships,
we are well positioned for the future. I would like to thank our
customers for continuing to choose Icelandair and our employees for
their great work this summer. I look forward to our continued
pursuits together.“
WEBCAST 20 OCTOBER 2023An investor presentation will be webcast
in relation to the publication of the results at 8:30 GMT onFriday,
20 October, at https://icelandairgroup.is. Bogi Nils Bogason,
President & CEO of IcelandairGroup, and Ivar S. Kristinsson,
CFO, will present the Company’s results and answer questions.
Thepresentation and Q&A will take place in English. The
presentation will be available after the meetingon the Icelandair
Group website: https://icelandairgroup.is and under Company News
onhttp://www.nasdaqomxnordic.com/news/companynewsContact
informationInvestors: Iris Hulda Thorisdottir, Director Investor
Relations. E-mail: iris@icelandair.isMedia: Asdis Petursdottir,
Director Communications. E-mail: asdis@icelandair.is
- Pressrelease Q3 2023_ English
- Interim Financial Statements of Icelandair Group hf. Q3
2023
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