Icelandair Wins CAPA Regional Airline of the Year

This award is given to the regional airline that has been the biggest standout strategically, has established itself as a leader and demonstrated innovation in the regional aviation sector. This award is intended to recognize smaller airlines or airline groups with annual passenger traffic of less than 10 million. Icelandair CEO Birkir Holm Gudnason accepted the award from TravelportSenior VP & MD Air Commerce Group Derek Sharp. Icelandair was selected by the judging panel for its strong performance in a small market that has experienced intensifying LCC competition. Icelandair has grown rapidly and has one of the highest operating margins among legacy airline groups. “Icelandair has achieved remarkable results and growth in the face of strong and growing LCC competition,” Mr Harbison said. “Its innovative connecting traffic strategy, which focuses on sixth freedom traffic between Europe and North America, has driven growth along with its promotion of Iceland as a tourist destination.” CAPA noted that Icelandair Group’s passenger traffic was up 16% in 2015 while its net profit improved by over 60%. Such growth and profitability levels are unusual for a small European full service airline. The group, which includes domestic turboprop operator Air Icelandand charter/wet lease operator Loftleidir, has annual passenger traffic of nearly 4 million. The parent airline has a fleet of 30 aircraft consisting almost entirely of single aisle aircraft.