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Strong cargo performance and focus on disciplined network management and cost control

Icelandair Group hf.
·4-min read

Highlights Q1 2021 results:

  • Operations still heavily impacted by COVID-19 with Icelandair’s capacity down by 92% in Q1 2021

  • Total revenue USD 57.3 million decreasing by 73%

  • Strong cargo revenues, up by 64%, and freight volumes exceeded pre-COVID levels

  • Charter and leasing services through Loftleidir-Icelandic generated important revenue streams for the Group

  • EBIT negative of USD 46.2 million compared to negative EBIT of USD 208.5 million last year

  • Net loss USD 30.1 million compared to USD 240.2 million in Q1 2020

  • Equity ratio adjusted for temporary effects of warrants; 23% compared to 25% at the beginning of the year

  • Total liquidity USD 281.9 million, thereof cash and marketable securities USD 109.9 million

  • Full integration of Air Iceland Connect with Icelandair completed successfully in March resulting in estimated annual cost synergies of about USD 3 million along with further revenue potential from Icelandair’s brand, distribution and network effects

  • Bookings in the international route network for Q2 2021 are still weak, impacted by COVID-19 and travel restrictions in key markets

  • Moderate ramp-up expected to start in Q2, further capacity increases expected from Q3 2021 and given the current booking status the outlook for Q4 2021 is good

  • Following its marketing campaigns, Icelandair is experiencing strong interest for travel to Iceland from the US, subsequently opening up opportunities for the VIA market as soon as Europe opens

  • Good outlook for the cargo operation

  • Due to continued uncertainty the Company will not provide a financial guidance

Bogi Nils Bogason, President & CEO

„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. Our domestic operation is showing signs of recovery and we believe that its integration into our international operations, completed in the quarter, will result in a stronger and more streamlined airline as well as improved services to our customers.

Despite the prolonged negative impact of the pandemic over the past weeks, we are optimistic that we will be able to start a moderate ramp-up from minimum operations in the second quarter with further capacity increases expected in the third quarter. The progress of vaccinations, especially in certain markets, such as the US, and potential lifting of travel restrictions for vaccinated travelers in Europe are positive steppingstones towards the recovery of air travel.

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. In addition, our Boeing 737 MAX aircraft that we have now re-introduced into our fleet will further strengthen our route network and provide us with opportunities when it comes to efficiency, environmental performance and new markets.

Furthermore, the outlook for our cargo operation continues to be favorable. 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.

We are in a strong position to manage the continued uncertainty and prepared to seize the opportunities ahead thanks to our outstanding employees, their great work and dedication.”

Webcast 30 April 2021

An investor presentation will be webcast in relation to the publication of the results at 8:30 a.m. on Friday, 30 April 2021, at Bogi Nils Bogason, President & CEO of Icelandair Group, and Eva Soley Gudbjornsdottir, Group CFO, will present the Company’s results and answer questions. The presentation and Q&A will take place in Icelandic. The presentation will be available after the meeting on the Icelandair Group website: and under Company News on:

Contact information

Investors: Iris Hulda Thorisdottir, Director Investor Relations. E-mail:
Media: Asdis Petursdottir, Director Communications. E-mail: