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Icelandair's Q2 earnings were the highest since 2016.

Icelandair’s Q2 earnings were the highest since 2016.

The second quarter’s profit for Icelandair was USD 13.7 million, the highest since 2016.

EBIT of 20.9 million dollars, up 19.6 million dollars from the previous year.
EBIT ratio of 5%, up 4.7 percentage points over time.
Profit of $13.7 million versus $3.8 million in the same quarter last year.
Records-breaking operating income of USD 414.2 million, up 26% annually
Record Q2 unit revenue (RASK) of 8.6 US cents, up 8% compared to the same period last year
Strong protability is the result of leasing revenue increasing 41% year over year.
2 million passengers were carried, representing a 17% year-over-year increase in capacity and a 19% increase over Q2 of last year.
83.6% load factor and particularly high demand on North American routes The highest ever liquidity position of USD 521.2 million is the result of strong operating cash flow.

Forward bookings are strong and higher than last year for the upcoming six months.
President and CEO Bogi Nils Bogason stated: “We are proud to deliver the strongest results in the second quarter since 2016 thanks to the outstanding work of our employees. Record passenger revenue, a historically high load factor, and improved yields in all of our markets all contributed to the prot of USD 13.7 million. Lower fuel expenses brought about by the Boeing 737 MAX’s efficiency as well as lower fuel prices improved the outcomes. Additionally, our leasing business maintained its strong performance and predictability.

In order to maintain the reliability of our aggressive ight schedule, we leased additional aircraft in June due to delays in maintenance projects and the implementation of new aircraft. One-time expenses as a result had a negative effect on the Q2 results. Our cargo operation continued to be difficult, but we firmly believe that with our intense focus on regaining stability, we will be able to turn it around within the coming months. In light of this, the Q2 results show solid underlying financial performance and provide us with great confidence for the future.

All things considered, the first half of the year has been busy as we have prepared for our busiest ight schedule to date in terms of the quantity of destinations and frequency of ights. We added two new locations, put six new aircraft into service, transported 1.8 million people, and hired and trained nearly 1,200 people.

With ongoing strong bookings, particularly from North America, the outlook for the second half of the year remains positive. There has been a high demand for flights to and from Iceland over the recent months. Additionally, Keavik Airport’s capacity has grown significantly, 20% above pre-Covid levels this summer and even further into the following winter. In some markets, revenue growth and yields are anticipated to be impacted by this development in the second half of the year. However, thanks to our excellent team of employees, valuable infrastructure, and strong liquidity, we are well-equipped to adapt to market conditions at any time. We continue to anticipate a full-year EBIT margin in the 4-6% range and therefore anticipate delivering net profit in 2023.
SourceTravel biz

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