RECORD UNIT REVENUES IN THE FIRST QUARTER OF 2023
April 27 2023 - 12:14PM
RECORD UNIT REVENUES IN THE FIRST QUARTER OF 2023
• Operating income of USD 233.3 million increasing by 47%
year-on-year• Strong revenue generation in the passenger network
with a record Q1 RASK of 7.6 US cents• Severe weather disruptions
in January and February negatively affected results• Cargo results
below expectations due to challenging market and operational
conditions• EBIT loss of USD 61.6 million• EBIT ratio improving by
10.3 percentage points between years• Loss of USD 49.1 million
compared to USD 49.7 million last year• Investments related to peak
season included in operating expenses• Capacity increased by 38%
year-on-year in the passenger network• 664 thousand passengers
carried; 57% more than in Q1 last year• Load factor of 78.2%, the
highest in Q1 since 2016• Strong liquidity position of USD 458
million• Forward bookings for next six months more than 40% over
last yearBOGI NILS BOGASON, PRESIDENT &
CEO“The performance of our passenger route network
improved significantly in the first quarter, driven by strong
revenue generation with record unit revenue and improved
utilization and yields. As we continued to increase capacity,
transporting almost 60% more passengers than in the same period
last year, we also reached the highest Q1 load factor in seven
years. The market to Iceland was particularly strongaccounting for
43% of total passengers, significantly contributing to the
Icelandic tourist industry during the off season.However, fuel
prices, weather-related disruptions and inflation impacted the
results more than expected. In addition, the performance of our
cargo operation was below projections due to unfavorable market
conditions and irregularities in our cargo flight schedule. The
market outlook for cargo remainschallenging and our focus over the
next weeks and months will be on restoring profitability. Our
aircraft leasing business performed well in the quarter and is
expected to continue to deliver strong resultsthroughout the
year.The prospects for the remainder of the year are positive,
despite continued inflation and some challenges in our operating
environment. Our flight schedule this summer will be the largest in
Icelandair’s history, with 54 destinations, of which four are new.
Demand for travel is robust with forward bookings for the next six
months significantly higher than last year.I would like to thank
all our employees for their hard work as we prepare for the high
season. Our training center is currently running almost 24/7 and it
is a great pleasure to welcome around 1,100 new employees to our
outstanding team to realize the record flight schedule in the
summer.Looking to the longer term, we are well-positioned to seize
the opportunities ahead with our unique route network based in the
strategic location of Iceland, our extensive commercial
infrastructure and strong financial position. Underpinning our
future growth is our decision to acquire Airbus A321XLR aircraft,
which will not only allow us to further develop our business model
on the transatlantic market but alsoprovide opportunities to enter
new and exciting markets.”WEBCAST 28 APRIL 2023An
investor presentation will be webcast in relation to the
publication of the results at 8:30 GMT on Friday, 28 April 2023, at
http://icelandairgroup.is. Bogi Nils Bogason, President & CEO
of Icelandair Group, and Ivar S. Kristinsson, CFO, will present the
Company’s results and answer questions. The presentation and
Q&A will take place in English.Contact
informationInvestors: Íris Hulda Þórisdóttir,
Director of Investor Relations.
E-mail: iris@icelandair.isMedia: Ásdís Pétursdóttir,
Director of Communications. E-mail: asdis@icelandair.is
- Icelandair Group hf. Q1 2023
- Pressrelease Q1 2023
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