Icelandair: Financial Results 2023

Profit of the year USD 11 million, a turnaround from a loss of USD 6 million in 2022
Strong revenue generation in the year and record unit revenue
Number of passengers 4.3 million in the year, an increase of 17%
Load factor of the year 81.5%, up by nearly 2 percentage points
Seismic activity in Southwest Iceland, volcanic eruption and labor action by air traffic controllers significantly impacted the Q4 results
EBIT in Q4 negative by USD 50.3 million
Capacity increased 13% in Q4; number of passengers up by 12%
Strong liquidity position at year-end at USD 323 million

Bogi Nils Bogason, President and CEO

“It is an important milestone to turn a profit after taxes in 2023 following many challenging years. Revenue generation was very strong during the year with strong demand in all our markets, especially from North America to Iceland. In addition, we achieved the best on-time performance for years, with Icelandair being named one of the top 10 most punctual airlines in Europe in 2023.
Our core business performed well in 2023, especially in light of impacts of external challenges and negative results in the cargo operation that we have already acted on. Following one of the strongest third quarters in our history, the fourth quarter started off well. However, when the seismic activity in Southwest Iceland started in November with the consequent global media coverage, demand weakened and, thereby, revenue generation was negatively affected. In addition, the impact of labor actions by air traffic controllers in Iceland and a volcanic eruption in December was significant. Furthermore, the capacity increase seen in key markets inevitably puts pressure on unit revenue. The results in the fourth quarter were therefore below expectations and impacted the full-year results.
There are exciting times ahead, although the first part of the year will be challenging due to the aforementioned impacts that will continue into the first quarter. We are in a good position to respond to the challenges and seize the opportunities ahead with our flexibility to adapt to the situation at any given time. Aviation and tourism are very important industries for the Icelandic economy and society. The tax footprint of Icelandair was USD 401 million in 2023 and tourism accounts for a significant proportion of Iceland’s export revenue. It is therefore key to ensure the competitiveness of these industries into the future. An important part of that is to reach an effective solution on the collective bargaining agreements that are currently being negotiated in Iceland and the successful easing of inflationary pressures in the country.
The outlook for the summer is good. The demand for travel to Iceland is recovering, following last weeks’ events, with Iceland continuing to be a popular destination. We are also seeing a higher proportion of bookings on the via market than before. Our flight schedule in 2024 will be around 11% larger than in 2023 with 57 destinations, thereof three new – Pittsburgh, Halifax and the Faroe Islands.
I look forward to our endeavors in 2024 with our outstanding team of employees and I would like to thank them for their incredible resilience and great work during challenging times in 2023. I would also like to thank our partners, shareholders and last but not least our customers for choosing Icelandair.“

Webcast 2 February 2024

An investor presentation will be webcast in relation to the publication of the Q4 and the full-year 2023 results at 8:30 GMT on Friday, 2 February 2024, at http://icelandairgroup.com. Bogi Nils Bogason, President & CEO of Icelandair, and Ivar S. Kristinsson, CFO, will present the Company’s results and answer questions. The meeting will take place in English. The presentation will be accessible after the meeting on the Company’s website and under Corporate News on the Nasdaq Nordic website: http://www.nasdaqomxnordic.com/news/companynews

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