- Total revenues USD 248.6 million, down by 7% between years
- EBITDA negative by USD 14.7 million, improving by 19% between years
- Excluding the impact of IFRS 16, EBITDA was negative by USD 29.3 million
- 13% increase in number of passengers to Iceland
- Equity ratio at end of March 23%, as compared to 32% at year-end 2018
- Equity ratio excluding IFRS 16 is 28%
- Cash amounted to USD 289 million at end of March
Bogi Nils Bogason, President & CEO
“The number of passengers to Iceland grew by 13%, passenger numbers on the home market from Iceland grew by 10% while passenger numbers between Europe and North America declined by 2%. Our operations in the first quarter proved challenging, as we had anticipated, and operating results were in line with expectations. Air fare development was negatively impacted by tough competition of air carriers that have been offering unsustainable air fares. At the same time, the downward pressure on transatlantic air fares continued. Implementation and training expenses relating to six new aircraft, which the Company had intended to take into use had a negative impact, and, in addition, the suspension of the B737 MAX aircraft resulted in a one-off expense.
Aviation is by nature a volatile industry and exposed to sudden changes in the market environment, changes in capital markets and unexpected events. Icelandair Group has therefore focused on ensuring financial stability at all times by maintaining a strong balance sheet. As a result of a strong financial position and the Company’s flexibility, Icelandair Group is well positioned to handle challenging circumstances, but also to seize opportunities that arise, for example as a result of changes in the competitive environment. The changes that occurred toward the end of the first quarter create opportunities for Icelandair Group for profitable organic growth. In the short term, the suspension of the B737 MAX aircraft will delay the positive impact of these changes.
The Company’s long-term prospects are favourable, and with a joint effort on the development and execution of a comprehensive strategy, the future of the Icelandic travel industry is bright. It is pleasant to have a seasoned international investor share our belief as demonstrated by PAR Capital Management’s acquisition of 11.5% share in the Company for USD 47 million, as announced last April. This investment will strengthen the Company further and reinforce its competitiveness for the future.”
Presantation meeting and webcast on 6 May 2019
An open presentation for stakeholders will be held on Monday 6 May 2019 at the Icelandair Hotel Reykjavik Natura. Bogi Nils Bogason, President & CEO of Icelandair Group, and Eva Soley Guðbjornsdóttir, CFO, will present the Company’s results and respond to questions, together with other senior management. The presentation will be held in Room 2, starting at 08:30. Breakfast will be offered from 08:00 a.m. The presentation material will be available after the meeting on the Icelandair Group website, www.icelandairgroup.is, and on the Nasdaq OMX Iceland hf. news system.
The meeting can be followed in real time on the website
http://www.icelandairgroup.is/investors/reports-and-presentations/webcast-next/
Contact information:
Investors: Íris Hulda Þórisdóttir, Director Investor Relations, E-mail: iris@icelandairgroup.is
Media: Ásdís Pétursdóttir, Communications Director, E-mail: asdis@icelandair.is
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