22 July, 2022

Icelandair recorded a second quarter profit of $4 Million

Icelandair managed to record a second quarter profit of around $4 million the beleaguered carrier reported this week, which marked a major milestone in the airlines recovery. Icelandair has been increasing capacity and updating its schedules which in line with high demand has seen yields and loads rising with the airline. "Our ramp-up has continued into July with more destinations, frequent flights to our most popular destinations and diverse departure times throughout each day. Like the rest of the industry, we have been faced with various challenges, such as employee shortage at airport operators in Europe and North America that has caused flight disruptions, as well as supply chain issues that have delayed the return of aircraft out of maintenance. We are, however, in a good position to respond to such disruptions with our extensive flight schedule and frequency of flights that enables us to get our passengers quickly and efficiently to their destinations. In addition, our employees have also taken various innovative actions to minimize the impact on our customers." Explained the airline's CEO and President Bogi Nils Bogason.

Icelandair  expects the flight schedule to reach around 83% of 2019 levels in Q3 and around 90% of 2019 in Q4 2022. The outlook for its cargo and leasing businesses as also looking good according to Bogason "As we have seen in the past and what the pandemic and the subsequent ramp-up phase have clearly demonstrated is that we have a robust business model and an excellent team of employees. We will continue to work hard on unleashing the opportunities we see for Icelandair going forward."

EBIT USD 1.2 million improving by USD 63.4 million year-on-year despite fuel price more than doubling
Operating income USD 328.9 million up by USD 251.4 million
Passenger revenue driving the increase in operating income
Continued recovery in capacity; 76% of 2019 production levels vs 58% in Q1 2022
Load factor significantly improving year-on-year; 78.5% vs 47.3%
Almost one thousand employees recruited during the quarter
Strong cashflow from operations (USD 121.7 million)
Record liquid funds available at end of June USD 463 million
Committed to taking delivery of six more efficient B737 MAX aircraft, supporting further growth and sustainability targets
The second half of the year expected to be profitable with Q3 performance significantly stronger than last year

Air Models have a range of aircraft models, including some special 737 MAX models, including this one in the colours of flydubai.  

Other airlines featured include Air ChinaXiamen Air and China Southern