Icelandair Group (ICEAIR) Q3 2025 earnings summary

Executive summary

• Q3 revenue reached a record $585.3 million, up year-over-year despite fare pressure in the transatlantic market and cost headwinds.

• Net profit for Q3 was $57.3 million, down from the previous year, with EBIT at $74 million and a margin of 13%.

• Strong liquidity at $503 million, improving by $107 million year-over-year.

• Transformation program delivered $50 million in impact year-to-date, with over 200 initiatives implemented and targeting $100 million annualized by end of 2025.

• Route network flexibility and efficiency gains offset weakness in transatlantic and via markets, with 1.7 million passengers carried in Q3.

Financial highlights

• Total revenue increased 6% year-over-year, driven by strong demand to and from Iceland.

• Passenger revenue up 5% to $522 million; cargo revenue up 7%; leasing revenue strong with a 21% EBIT margin.

• Operating costs rose 9% to $464.6 million, mainly due to negative currency effects and inflation.

• Fuel costs decreased 5% due to lower prices and improved fleet efficiency.

• Depreciation rose, reflecting more leased aircraft; net finance expenses increased year-over-year.

Outlook and guidance

• Full-year 2025 EBIT expected to be negative $10–20 million, reflecting ongoing cost pressures and currency headwinds.

• Modest 2% capacity growth planned for 2026, focused on shoulder and low seasons and to/from Iceland markets.

• Transformation program expected to deliver $100 million annually.

• Booking trends for coming months have improved since Q2, with October bookings stronger than last year.

• Cargo and leasing outlook remains positive.