Icelandair Group reports USD18m operating profit in 2016, notes challenging year in 2017

Icelandair Group revenue up 12% – financial highlights:

• Three months ended 31-Dec-2016:
• • Total revenue: USD256.5 million, +12% year-on-year;
  • • Passengers: USD171.8 million, +13%;
    • Cargo and mail: USD13.9 million, +28%;
    • Aircraft and aircrew lease: USD18.4 million, -27%;
  • Costs: USD254.0 million, +23%;
  • • Labour: USD98.2 million, +29%;
    • Fuel: USD45.2 million, +14%;
  • Operating profit (loss): (USD24.4 million), compared to a profit of USD1.9 million in p-c-p;
  • Net profit (loss): (USD22.9 million), compared to a profit of USD0.3 million in p-c-p;
  • Passengers:
  • • International: 769,500, +22%;
    • Regional: 72,500, +12%;
  • Passenger load factor:
  • • International: 79.8%, -0.9 ppt;
    • Regional: 63.7%, -10.0 ppts;
• 12 months ended 31-Dec-2016:
• • Total revenue: USD1286 million, +13%;
  • • Passengers: USD895.6 million, +11.0%;
    • Cargo and mail: USD52.2 million, +23.4%;
    • Aircraft and aircrew lease: USD84.6 million, +1.5%;
  • Costs: USD1066 million, +16.7%;
  • • Labour: USD354.3 million, +27.4%;
    • Fuel: USD213.4 million, -4.7%;
  • Operating profit: USD18.4 million, -17%;
  • Net profit: USD89.1 million, -20%;
  • Passengers:
  • • International: 3.7 million, +20%;
    • Regional: 322,700, +9%;
  • Passenger load factor:
  • • International: 82.2%, -1.0 ppt;
    • Regional: 69.3%, -5.1 ppts;
  • Total assets: USD1292 million;
  • Cash and short-term investment: USD250.1 million;
  • Total liabilities: USD724.3 million. [more - original PR]

Icelandair Group: “At the beginning of this year, however, it is clear that circumstances are very challenging. As we reported last week, Icelandair’s flow of bookings has taken a negative turn. Bookings are slower than expected, and average airfares in the market have fallen below projected levels. In the last few days we have seen news confirming that this development is affecting the airline industry in general. This trend can principally be traced to increased competition, but it can also be argued that uncertainty resulting from changes in international politics has affected demand,” Björgólfur Jóhannson, President and CEO. Source: Company statement, 07-Feb-2017.