Icelandair: CORRECTION: Net profit USD 101 million in third quarter
26-Oct-2017 A correction has been made to the third bullet point below and in the attaced pressrelease: EBITDA at USD 161.1 million instead of USD 161.1 billion
- Total income in Q3 up by 10% between years, to USD 536.0 million
- Passenger revenue higher than expected
- EBITDA unchanged year on year, at USD 161.1 million
- Passenger load factor on international routes favourable, at 86.2%, up by 0.6 percentage points between years
- Equity ratio 43% at the end of September
- Cash and short-term investments USD 264.1 million and net interest-bearing debt USD 19.9 million
- EBITDA guidance raised to USD 165-175 million
Björgólfur Jóhannsson, President and CEO
"The Company’s third quarter operations were successful. Our performance was better than anticipated, largely as a result of higher passenger revenues and favourable currency trends, which outweighed the negative fuel price trend. In addition, streamlining measures are beginning to return the expected benefits. The performance of our charter operations and cargo operations also exceeded expectations. With the Company’s passenger numbers on international flights just short of 1.5 million, we have never in our history flown more passengers in a single quarter. In light of the stronger third quarter performance and the fact that the outlook for the fourth quarter has also strengthened, we have raised our earnings guidance accordingly for the year, to USD 165-175 million.
The market has responded favourably to our new fare offering, Economy Light, which was introduced by Icelandair recently. We are anticipating continued growth next year in line with our strategy of organic growth, and Icelandair’s flight schedule for 2018 will expand by 11%. The outlook for the Company’s flight operations remains unchanged, but competition remains fierce in the North Atlantic, and continued pressure is anticipated on average air fares. Nevertheless, the Company has shown that with its flexibility and financial strength it is well positioned to weather fluctuations in its operating environment."