Tuesday, 6 August 2019

Icelandair's performance in July shows mixed results

Icelandair has released its July figures today and they show mixed results for the Icelandic carrier that is still struggling to cut costs despite to collapse of local rival WOW air.  

The total number of passengers on international flights was almost 564 thousand in July, increasing by 9% compared with July last year the airline says. Which sounds good, but as capacity increased by 8% and the firm's competition decreased by nearly 30% with WOW's collapse, isn't that impressive. 

The load factor was negatively impacted by changes to the network that were made with a short notice because of the MAX suspension and was 82.9% compared to 85.3% in the same period last year. The number of passengers to Iceland increased by 32% to Iceland, or by over 60 thousand. Icelandair has never transported as many passengers in the month of July to Iceland as this year, or a total of almost 251 thousand. Passengers on the home market from Iceland also increased by 23%, or by a total of over 11 thousand passengers. This increase in the to and from markets is partly due to the changes of aircraft the airline is using on routes that were scheduled to be flown by the grounded 737 Max aircraft. It is also partly due to the drop in competition to and from Iceland from WOW and other European carriers.

The North-Atlantic market remained the biggest market in July, accounting for 45% of total passengers although the number of via passengers decreased by 10% from July last year. Arrival On-Time-Performance in the route network in July increased to 71% from 51% from the same period last year. Yet, is that really something to be proud of?  Just 71% of flights arriving on time, not a great record and below the industry average for an international airline of Icelandair's size.

The number of passengers on domestic and regional flights was around 28 thousand in July, decreasing by 10% compared to the same period last year, which is in line with capacity decrease. The load factor was 72.1% and decreased slightly between years. The number of sold block hours in charter flights increased by 5% and freight increased by 6% compared to the same period last year. The number of sold room nights at Icelandair Hotels was up by 3% from last year. The room utilisation was 89.6% compared to 84.1% in July 2018.

July 2019.
  To market (passengers)250,93932%1,044,54629%
  From market (passengers)59,86323%370,48723%
  Via market (passengers)253,180-10%1,141,900-3%
Total Number of Passengers563,9829%2,556,93311%
Load Factor82.9%-2.3 ppt82.0%1.8 ppt
Available Seat KM (ASK´000,000)2,099.48%9,717.48%
Revenue Passenger KM (RPK´000,000)1,741.05%7,969.410%
Stage length (KM)3,127-4%3,130-1%
On-Time-Performance (Arrivals)71.0%19.8 ppt72.0%13.9 ppt
Number of Passengers28,349-10%163,080-13%
Load Factor72.1%-0.3 ppt68.3%4.4 ppt
Available Seat KM (ASK´000,000)17.3-9%84.3-25%
Fleet Utilisation100.0%9.1 ppt94.3%0.9 ppt
Sold Block Hours2,8005%17,724-13%
Freight Tonne KM (FTK´000)10,6866%77,73110%
Available Hotel Room Nights49,962-3%257,6319%
Sold Hotel Room Nights44,7723%203,00010%
Occupancy of Hotel Rooms89.6%5.5 ppt78.8%0.9 ppt
From Icelandiar

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