Icelandair Group (ICEAIR) Q1 2025 earnings summary

Executive summary

• Record Q1 passenger revenue and load factor, with 829,000 passengers, up 9% year-over-year; all business segments showed improvement.

• Transformation program driving efficiency, with over 90 initiatives implemented and a $70 million annual impact expected by year-end.

• Partnership with Southwest Airlines launched, expanding US connectivity.

• Average full-time employees decreased by 8% year-over-year to 3,175.

Financial highlights

• Net loss narrowed to $44.1 million from $59.4 million year-over-year; EBIT improved by $7 million.

• Total operating income rose to $286.5 million from $259.0 million; passenger revenue hit a Q1 record at $214 million.

• Leasing revenue up 47% to $29 million; cargo revenue stable at $21 million.

• Cash and marketable securities at period end totaled $417.5 million, with total liquidity at $510 million.

• Operating expenses (excluding depreciation) increased 5% to $309 million, below capacity growth.

Outlook and guidance

• Summer 2025 passenger network to be largest ever, serving over 60 destinations with 42 aircraft.

• Profitability for Q2 and Q3 anticipated to improve year-over-year; Q4 outlook uncertain due to slower bookings and economic volatility.

• Not reaffirming full-year guidance due to increased uncertainty in demand and currency fluctuations.