Icelandair has a better than expected year in 2013, reporting a pretax profit of $71 million

Icelandair Group (Icelandair) (Keflavik) reported its financial results for 2013 (all dollar figures in US dollars):

  • Profit before taxes amounted to $71.0 million, up by $13.6 million or 24% between years
  • Income rose between years by 13.8%
  • EBITDA in the fourth quarter amounted $6.8 million, up by $0.9 million between years
  • The equity ratio at year-end 2013 was 42%, as compared to 39% at year-end 2012
  • Net interest-bearing debts were reduced by $95.6 million over the year and were negative at year-end in the amount of $77.5 million
  • The Board of Directors has proposed a dividend payment of ISK 2,150 million to shareholders in 2014, which corresponds ISK 0.43 per share.

Björgólfur Jóhannsson, President and CEO

“The Company’s performance in 2013 is good and considerably better than our budget projected in the beginning of the year.  Profit before taxes amounted to $71.0 million, up by $13.6 million between years. Like recent years, last year was characterised by profitable organic growth, which is in line with our strategy. Capacity in our route network was increased by 16% from last year, and the number of passengers increased by 12%. The Company’s largest market in international flight services is the market between Europe and North-America, which has been the principal driving force of our growth in recent years. The tourist market to Iceland has also shown significant growth, and the demand for domestic tourist services has increased rapidly. Concurrently with this expansion, companies within Icelandair Group have found opportunities for profitable growth.

The rapid growth of recent years has tested the Company’s infrastructure, which is now stronger than ever before. The main reasons for the good performance of the year include favourable external conditions, increase in tourism in Iceland and last but not the least our strong team of employees which are a very important factor in what we have achieved. It is always satisfying when things are going well, but there is no room for complacency. There are various challenges ahead that we need to address.  The principal challenge is the increasing competition, and in addition our contracts with some of our classes of employees have expired, which creates some uncertainty. Nevertheless, the Company’s business model has proven sound, our finances are solid and our cash position is strong. Icelandair Group is therefore well positioned to take on the future. The Company’s budget for 2014 projects EBITDA at $145-150 million.”

Trip Report on Icelandair by the Sydney Morning Herald on a London-Halifax trip: CLICK HERE

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 757-208 TF-FIJ (msn 25085) lands in Stockholm (Arlanda).

Icelandair: AG Slide Show