Icelandair Group (ICEAIR) Q2 2025 earnings summary

Executive summary

• Q2 achieved record passenger revenue of $393 million and net profit of $13 million, with strong cash flow and on-time performance of 87.2%, ranking highest among large European airlines in April and June.

• Passenger numbers rose to 1.4 million, with notable growth in To and From Iceland markets.

• Cargo and leasing operations delivered strong results, with double-digit revenue growth and EBIT improvements.

• Transformation program is progressing, with 170 out of 400 initiatives implemented, targeting $90–95 million annualized impact.

• Average full-time employees in Q2 remained stable at 3,720.

Financial highlights

• Operating income rose 13% year-over-year to $463 million; passenger revenue up 11% to $393 million.

• Cargo revenue increased 13% to $19 million; leasing revenue surged 46% to $30 million.

• Net profit for Q2 was $12.9 million, up $12 million from the prior year; YTD net loss was $31.2 million.

• Cash and marketable securities at quarter-end were $480 million, with record liquidity of $572 million, including $92 million undrawn credit lines.

• Salaries and related costs rose 16% to $124 million, mainly due to a stronger ISK and wage increases.

Outlook and guidance

• Full-year EBIT is expected to be at break-even, with Q3 EBIT profitability forecasted to improve year-over-year.

• Bookings for Q3 are ahead of last year, but Q4 bookings are slower, with yield pressure persisting in the via market.

• If the ISK had remained at last year's average, EBIT guidance would be $50 million higher.

• Long-term target of 8% EBIT margin remains in place, with management confident in achieving this goal.