Icelandair reports challenging 2016, 'long-term prospects are good'

Icelandair stated (02-Feb-2017) earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be close to the upper limit of USD210 million to USD220 million for the full year 2016. The carrier noted, "The inflow of bookings at Icelandair has changed for the worse recently." The carrier said bookings were slower than anticipated and average airfares decreased more than expected. The development was attributed to increased competition and changes in international politics may have affected demand. In addition, currencies developed in an unfavorable way compared to 2015, fuel prices increased and a strike in the Icelandic seafood industry had a negative impact on freight operations. The outlook in the company's hotel operations is good. Given current assumptions, the carrier expects an EBITDA of between USD140 million and USD150 million for 2017. The company stated, "Continued organic growth is expected and the Company's management believes that long-term prospects are good." [more - original PR]