Icelandair reports third-quarter profit of 9.5 billion kroner after taxes

Icelandair reported a third-quarter profit of 9.5 billion kroner after taxes. The CEO noted that shifts in demand have impacted the airline’s financial performance, expressing optimism for a significant operational recovery in the upcoming quarter and throughout the next year.

In a financial announcement from the airline, it was revealed that the pre-tax profit stood at 11.4 billion kroner. On-time performance improved by 5%, contributing to a 2% reduction in unit costs during this period. However, unit revenues decreased due to reduced demand for flights to Iceland and lower average fares in the North Atlantic market.

Seat utilization increased to 86%, marking a 1.4% rise compared to the previous year, with passenger numbers growing by 9% to reach 1.7 million, including 550,000 traveling to Iceland. The CEO, Bogi Nils Bogason, credited the coordinated efforts of the staff for effectively adjusting the route system in response to demand shifts toward Iceland while placing more emphasis on transatlantic markets, which resulted in strong seat utilization during the third quarter.

Despite the adjustments, changes in market demand affected profitability, as average fares are lower in this sector. However, Bogason noted that the market to Iceland is showing signs of strengthening, and he anticipates a significant operational recovery in the fourth quarter and into next year.