Tag Archives: Icelandair Group

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

Icelandair:

Icelandair remains in the red with a 1Q net loss of $18.3 million

Icelandair Group (Icelandair) (Keflavik) reported a net loss of $18.3 million in the first quarter, an increase from a net loss of $13.2 million in the same quarter a year ago.

The airline issued this statement:

Icelandair Group organic growth continues

Losses after taxes USD $18.3 million, as compared to USD $13.2 million in the preceding year
Performance in the quarter exceeded management projections
EBITDA negative by USD $8.3 million, as compared to negative USD $3.0 million last year
Passenger revenues increased by 24% between years
Total revenue increased by 10%
Equity ratio was 32% at the end of March
Net cash provided by operating activities USD 78.5 million, as compared to USD 86.1 million in the preceding year

Björgólfur Jóhannsson, President and CEO:

“Icelandair Group’s performance over the quarter was better than our budget projected and estimates of continued growth materialized. Capacity on international flights increased by just short of a quarter in the first three months of the year, and the increase in passenger numbers over the same period was 18%. The greatest increase was in the number of passengers on the North Atlantic market, about 40%. The number of passengers in the tourist market to Iceland also increased significantly from last year, with a positive impact for all tourist services in Iceland. The Group’s freight activities have shown a turnaround. Freight charter projects have been downsized systematically, and the focus has been shifted to scheduled air freight services, which has returned good results.

At the start of the year we issued an EBITDA forecast for 2013 in the range of USD 115-120 million. The performance in the first quarter was in excess of the forecast, and in addition operating prospects are generally positive. Based on adjusted assumptions, EBITDA for the year is now projected at USD 122-127 million.”

Icelandair:

Route Map:

Icelandair reports a second quarter net profit of $14.3 million, considers acquiring additional aircraft types

Icelandair Group (Icelandair) (Keflavik) reported a second quarter net profit of $14.3 million.

In addition, in its report, the group stated it is looking at its fleet options with a long-term fleet strategy. Here is the official statement:

TWO OPTIONS CURRENTLY UNDER CONSIDERATION

| Work in progress on a long-term strategy for Icelandair Group’s fleet
| The work done in close co-operation with the manufacturers Boeing and Airbus
| Other aircraft manufacturer are also being monitored
| A decision on the future fleet will be made in near future
| Options being evaluated:

Option 1: Single fleet of Boeing 757 aircraft until 2022

Option 2: Mixed fleet of Boeing 757 and smaller aircraft

Read the full report: CLICK HERE

Copyright Photo: Keith Burton. Besides utilizing its Boeing 757 fleet for scheduled passenger and charter operations, the flag carrier also operates the Boeing 757 as a freighter. Icelandair Cargo Boeing 757-23A PCF TF-FIG (msn 24456) climbs away from Southend with its additional “Absolutely Fresh” titles and logo for its fish-hauling operations.

Icelandair:

Icelandair Group swings to the black with a second quarter net profit of $3.5 million

Icelandair Boeing 757-208 WL TF-FIJ (msn 25085) LHR (Antony J. Best), originally uploaded by Airliners Gallery.

Icelandair Group (Keflavik) reported a 27 percent increase in passengers in the second quarter ending on June 30. The company was also able to swing back into the black with a net profit of $3.5 million.

Watch the PowerPoint presentation of the company: CLICK HERE

Icelandair Slide Show: CLICK HERE