Icelandair Group (ICEAIR) investor relations material

Executive summary

• Achieved record Q1 revenue of USD 347 million, up 21% year-over-year, with strong load factor and yield improvements, and EBIT margin at its highest since 2016, improving over 6 percentage points year-on-year.

• EBIT loss narrowed to USD 53.3 million, improving by USD 8.9 million year-over-year, despite negative FX impacts and higher costs.

• Transformation program delivered USD 19 million impact in Q1 2026, with USD 96 million realized to date and expected to reach USD 117 million annual impact when fully implemented.

• Net loss was USD 45.3 million, slightly higher than last year due to lower currency gains.

• Strong liquidity position with USD 616.3 million at quarter-end, up USD 107 million year-over-year.

Financial highlights

• Passenger revenue reached USD 258.3 million, up 21% year-over-year, with a 13% capacity increase and 9% yield growth.

• Cargo revenue up 8% and leasing EBIT margin at 19%, with gain of USD 8.1 million from sale of a B767 aircraft.

• Total operating cost increased 16% to USD 358.1 million, mainly due to higher salaries, fuel, and maintenance.

• Net cash from operating activities was USD 197.3 million; liquidity at quarter-end was USD 616.3 million including undrawn credit.

• Equity improved to USD 303.4 million, equity ratio at 13.5%, and total assets at USD 2.25 billion.

Outlook and guidance

• Q2 profitability expected to be lower than last year due to higher jet fuel costs, despite strong demand and improved unit revenues.

• Capacity trimmed by 2% in Q2, with further adjustments under review for fall and winter.

• Fare increases implemented to offset rising fuel costs, with no material impact on demand so far.

• Full-year results depend on fuel price developments and fare increase impact on demand.

• Booking outlook for summer 2026 is positive, with revenues trending ahead of last year.