Icelandair has reported a fall in earnings for the second quarter of 2024 with EBIT down 17.5% to US$3.3 million and net profit down 13.0% to US$0.6 million on a capacity increase of 8%.
Passenger revenue grew slightly by half a percentage point to $353.2 million as flights were added.
The airline noted a “positive cost development” in a 2.4% decrease in unit cost despite high inflationary environment. The airline stated that fleet renewal, cost control, and increased operational efficiency all contributed to the decrease in unit costs.
Leasing revenue rose slightly delivering EBIT profit of $3.2 million. And despite less freighter capacity, Icelandair reports a positive turnaround in the cargo operation of $3.4 million.
Icelandair maintains a strong liquidity position of $465 million at the end of Q2 2024.
“Following the past years of post-covid recovery that was completed last year, this year, our focus has been on driving efficiencies in our operations,” said Bogi Nils Bogason, President & CEO of Icelandair. “Numerous improvement initiatives are underway, some of which have already yielded results, and we expect to see further results going forward.”
Bogason added that the airline is pursuing “great opportunities ahead” including the expansion of its route network with new, longer-range aircraft. “Despite fluctuations from year to year, I have full confidence in the future success of Icelandic tourism and, not least, the connecting model we have built up over the decades,” he said. “The market to Iceland is already showing positive signs and will recover in the near future with the right supporting actions. The current emphasis in our operations will increase our competitiveness, productivity, and efficiency, which with our strong cash position makes us well-equipped for the journey ahead and will support the future success of Icelandair.”
Icelandair reports second quarter results
