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| Source Icelandair |
The financially troubled national carrier of Iceland, Icelandair has issued its latest results for the first quarter of 2021 which show revenue was just over $53 million, a decrease of some 73% year on year. Net losses for the quarter were $30.1 million compared to $240.2 million for the same period last year.
The airline says the ongoing coronavirus pandemic and the resulting increased border controls and restrictions continued to hamper its operations with capacity down by around 92%. One area of growth for the company is cargo, Icelandair says cargo revenues, up by 64%, and freight volumes exceeded pre-COVID levels.
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| Source Icelandair |
Another key aspect in the group's shrinkage during the last quarter was the full integration of Air Iceland Connect into the Icelandair operation, which will, according to the airline's management save around $3 million a year, yet will leave isolated communities even more isolated and may prove to be short-sighted according to Icelandic business analysts.
Bogi Nils Bogason, President & CEO said: "Our focus on disciplined network management and tight cost control coupled with strong performance of our cargo operation has resulted in acceptable financial results given the heavy impact of the COVID-19 pandemic."
Bogason continues: "We see great opportunities for Iceland as a tourist destination when markets open again and the recent and ongoing volcanic eruption close to Keflavik International Airport has further added to Iceland’s visibility internationally. With robust infrastructure and our agile and flexible approach to route network management, we are prepared for a quick and efficient ramp-up as soon as the situation improves."
Part of that ramp up has seen the carrier instigate a publicity campaign in the U.S, which has had the mixed success of getting more people interested in Iceland as a safe destination, but also encouraging competition from U.S. carriers, who have announced new routes to Iceland in direct competition with the home-based airline
Cargo seems to be the best option for the airline as it struggles to recover. "With recent investments in our cargo fleet we aim to increase the cargo capacity in our markets and at the same time strengthen Iceland as a cargo hub between continents in a similar way that our passenger hub provides attractive connections between Europe and North America," Bogason said.
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| Source Icelandair |
