Icelandair Group (ICEAIR) investor relations material

Executive summary

• Record Q2 revenue of USD 496.2 million, up 7% year-over-year, with a load factor of 84% and on-time performance of 82.8%.

• EBIT fell to negative USD 29.6 million from positive USD 0.8 million last year, mainly due to a USD 41 million (43%) increase in fuel costs and negative FX effects.

• Net loss for Q2 was USD 32.3 million; comprehensive loss was USD 73.6 million.

• The ONE transformation program delivered USD 29 million in Q2 savings, with over 300 initiatives implemented and an estimated annual impact of USD 123 million.

• Fleet renewal and modernization efforts continue, reducing average fleet age and improving efficiency.

Financial highlights

• Passenger revenue reached USD 421 million, up 7% year-over-year, despite slightly lower capacity.

• RASK increased 9% year-over-year, driven by higher yields, improved load factor, and favorable market mix.

• CASK ex-fuel rose 7% due to salary increases, negative FX impact, and disruption costs.

• Liquidity remained strong at USD 604 million at quarter-end, with cash and marketable securities totaling USD 512 million.

• Equity at quarter-end was USD 229.8 million, with an equity ratio of 10.5%.

Outlook and guidance

• Q3 unit revenues expected to reach record levels, up 11–15% year-over-year, with capacity down 5% to focus on profitability.

• Q3 EBIT expected to improve year-over-year, with strong demand and robust booking trends.

• Jet fuel price assumption for Q3 is USD 1,300 per ton.

• Q4 capacity planned to grow by about 2%, with optimism for acceptable load factor and yields despite a shorter booking curve.

• Full-year outlook remains uncertain due to jet fuel price volatility and external market conditions.