Icelandair Group Posts Mixed Numbers for Q1 2023 Results
The Icelandair Group, has posted Q1 2023 revenues of US$233m, an increase of 47% year-on-year.
The Icelandair Group, has posted Q1 2023 revenues of US$233m, an increase of 47% year-on-year.
DALLAS - Icelandair (FI) parent, the Icelandair Group, has posted Q1 2023 revenues of US$233m, an increase of 47% year-on-year. US$170m of this figure was generated via its passenger operations. However, the group's net loss stood at US$49.1m, similar to last year's Q1 period.
For the passenger side of the group, capacity increased by 38% year-on-year. FI carried some 664,000 passengers, up 57% from Q1 2022. Load factor stood at 78.2%, the highest since Q1 2016.
The official results, released today, blamed severe weather disruptions at the start of the year that have 'negatively affected' the numbers.
Bogi Nils Bogason, President and CEO, said, "The performance of our passenger route network improved significantly in the first quarter, driven by strong revenue generation with record unit revenue and improved utilization and yields.
"As we continued to increase capacity, transporting almost 60% more passengers than in the same period last year, we also reached the highest Q1 load factor in seven years. The market to Iceland was particularly strong accounting for 43% of total passengers, significantly contributing to the Icelandic tourist industry during the off-season."
Also affecting the group's numbers was its cargo unit. These results were 'below expectations due to challenging market and operational conditions.' Icelandair Cargo, which operates a fleet of Boeing 757-200 and 767-300 freighters, contributed US$23.7m, down 4% on Q1 2022.
Regarding the cargo side, Bogason said, "The performance of our cargo operation was below projections due to unfavorable market conditions and irregularities in our cargo flight schedule. The market outlook for cargo remains challenging, and our focus over the next weeks and months will be on restoring profitability. Our aircraft leasing business performed well in the quarter and is expected to continue to deliver strong results throughout the year."
Looking ahead, forward booking for the next six months are strong, up 40% on last year. The group also has a strong liquidity position of US$458m.
"Looking to the longer term, we are well-positioned to seize the opportunities ahead with our unique route network based in the strategic location of Iceland, our extensive commercial infrastructure and strong financial position," Bogason added.
"Underpinning our future growth is our decision to acquire Airbus A321XLR aircraft, which will not only allow us to further develop our business model on the transatlantic market but also provide opportunities to enter new and exciting markets."
https://airwaysmag.com/icelandair-signs-airbus-a321xlr-deal/
Featured Image: Icelandair (TF-ICY) Boeing 737-8. Photo: Alberto Cucini/Airways.
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