16-Aug-2010 1:43 PM

Icelandair Group 2Q2010 profits surge; optimistic about FY2010

Icelandair Group revenue up 12.2% - financial highlights:

  • Three months ended 30-Jun-2010:
    • Revenue*: EUR143.3 million, +12.2% year-on-year;
    • Total costs: EUR129.0 million, +8.8%;
      • Labour: EUR35.0 million, +12%;
      • Fuel: EUR26.0 million, +11%;
    • EBITDA: EUR14.1 million, +52.7%;
    • EBIT: EUR5.5 million, +585.4%;
    • Net profit (loss): (EUR1.1 million), compared with a loss of EUR8.8 million in p-c-p;
  • Six months ended 30-Jun-2010:
    • Revenue: EUR250.0 million, +14%;
    • Total costs:
      • Labour: EUR64.5 million, +9%;
      • Fuel: EUR43.5 million, +20%;
    • EBITDA: EUR15.2 million, +58.8%;
    • EBIT (loss): (EUR2.1 million), compared with a loss of EUR6.3 million in p-c-p;
    • Net profit (loss): (EUR13.4 million), compared with a loss of EUR32.6 million in p-c-p;
    • Operating cash flow: EUR61.5 million, +87.3%;
    • Cash and cash equivalents: EUR48.9 million, +20.8%;
    • Total assets: EUR640.6 million, +9.8% when compared with period ended 31-Dec-2009. [more]

*Based on the conversion rate at EUR1 = ISK152.691

Icelandair: “The company is optimistic for the success of the 'Inspired by Iceland' campaign launched by Icelandair and other travel service companies in partnership with the Icelandic government early this summer. The campaign will be a powerful tool in our endeavour to increase the flow of tourists to Iceland in the spring and autumn months. On the whole, I am optimistic as regards the company’s future prospects and for the Icelandic tourist industry as a whole. The best months of the year in airline operations and tourist services lie ahead, and the company expects that this will be reflected in the report for the third quarter,” Björgólfur Jóhannsson, CEO. Source: Icelandair, 15-Aug-2010.

Icelandair: “In the assessment of the company, the volcanic activity in Eyjafjallajökull cost the group approximately ISK1.5 billion. In the face of this fact, the company’s EBITDA in the first half of the year exceeded the projections made at the start of the year. As a result, the decision has been made to increase the EBITDA forecast for the year from ISK7.6 billion to ISK8.5 billion in 2010, which corresponds to a 12% increase from the previously published forecast. The long-term prospects for Icelandair Group’s operations are favourable, in the opinion of the company's management. It is the belief of Icelandair Group’s management that the company is in a good position to move forward by focusing on its operation of an international route network and universal services to travellers,” Company statement. Source: Icelandair, 15-Aug-2010.

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