Icelandair Group hf.: Net profit of USD 20 million in Q3 2021
20 Octubre 2021 - 12:26PM
Icelandair Group hf.: Net profit of USD 20 million in Q3 2021
Summary
Icelandair Group generated USD 19.6 million in
net profit in Q3 2021 despite the Delta variant negatively
impacting September load factor and unit revenues. The Company
further strengthened its liquidity, which amounted to USD 454.4
million at the end of the quarter. Net cash from operations
amounted to USD 25.2 million compared to negative USD 88.3 million
in Q3 2020.
Icelandair continued its network and operational
ramp up during the quarter. The company served 34 international
destinations, 11 in North America and 23 in Europe. The total
number of passengers was around 700 thousand which is almost
fourfold compared to last year. 52% of the passengers were tourists
to Iceland. The load factor was 68.2% and on-time performance was
86%. Passengers in the domestic network were 67 thousand and
reached pre-COVID levels.
Cargo operations continued to be strong with
volumes and revenues exceeding pre-COVID levels. Transit freight
increased considerably and was 10% of total transported freight,
compared to 3% in 2020.
The company experienced a booking trend setback
during August and September caused by the rise of the Delta
variant. The situation has, however, recovered and bookings have
been strong during the last few weeks. The opening of the US
borders for European travelers is a crucial milestone for the
company and following that all its markets will be open. In the
fourth quarter, the company will grow its capacity from 50% of 2019
capacity levels in Q3 to up to 65% of 2019 levels in Q4, serving 11
destinations in North America and 15 in Europe. However, in
addition to the continued impact of the pandemic and accompanying
travel restrictions, high fuel prices will negatively affect
operational results in the fourth quarter.
Bogi Nils Bogason, President and
CEO:
"We are pleased to have turned a profit from
regular operations in the quarter for the first time in two years,
driven by our successful ramp up over the past months. Our capacity
in the international passenger network increased sixfold compared
to last year, reaching 50% of our 2019 levels which is a great
result given the challenging circumstances. Load factor was strong
in July and August and we transported more passengers in July alone
than in the first six months of the year combined. The via market
also improved significantly as soon as Europe opened for US
travelers. In addition, we are proud to have reached 86% on-time
performance despite complicated travel restrictions and a rapid
ramp-up. This success can be attributed to our main strength,
flexibility – both of our network and our people who I would like
to thank for showing remarkable resilience in responding quickly to
changes in our markets and spotting and pursuing all possible
opportunities.
Despite our positive recovery path, the quarter
was still impacted by the pandemic. We experienced a setback with
the rise of the Delta variant, resulting in a slow-down in bookings
towards the end of the quarter. Demand for cargo, however, remained
strong. A key focus area in our cargo services is ensuring
efficient transport of fresh Icelandic seafood and thus supporting
important export revenue generation in Iceland. Utilizing our
strong route network, we work closely with our partners to deliver
fresh seafood products that have a low carbon footprint compared to
other protein sources and can be ready on consumers’ plates in
diverse markets within 48 hours of being caught.
Going forward, we see strong booking trends. The
opening of the US borders means that we can finally start
harnessing the full potential of our route network for the first
time since March 2020. Looking at the big picture, the recovery of
Icelandic tourism is greatly dependent on the competitiveness of
Iceland as a tourist destination. Therefore, it is important that
Icelandic authorities review the current border restrictions and
ensure they are simple, efficient and in line with those of the
countries around us. As for Icelandair, we are well prepared for
the months ahead – with our highly flexible operations, robust
infrastructure and a strong liquidity position, underpinned by
great teams of experienced people across the business."
Webcast 21 October 2021An
investor presentation will be webcast in relation to the
publication of the results at 8:30 local time on Thursday, 21
October 2021, at http://icelandairgroup.is. Bogi Nils Bogason,
President & CEO of Icelandair Group, and Ivar S. Kristinsson,
CFO, will present the Company’s results and answer questions.
The presentation and Q&A will take place in
Icelandic. The presentation will be available after the
meeting on the Icelandair Group website:
http://icelandairgroup.is and under Company News
on:http://www.nasdaqomxnordic.com/news/companynews
Contact informationInvestors:
Iris Hulda Thorisdottir, Director Investor Relations.
E-mail: iris@icelandairgroup.isMedia: Asdis Petursdottir,
Director Communications. E-mail: asdis@icelandair.is
- Icelandair Group hf 30.9.21
- Pressrelease Q3 2021
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