Icelandair Group (ICEAIR) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of USD 1.7 billion in 2025, up 11% year-over-year, with over 5 million passengers carried for the first time and a record-high load factor.

• Transformation initiatives delivered over USD 70 million in annual impact, with more than 230 implemented and over 500 identified.

• Operational efficiency improved, including a 2% reduction in full-time equivalents and strong on-time performance among Europe's best.

• External challenges such as geopolitical factors, currency depreciation, and rising emission and salary costs negatively impacted profitability.

Financial highlights

• Total operating income reached USD 1,740.9 million, with passenger revenue up 17% to USD 1.5 billion.

• EBIT loss narrowed to USD 17 million, and net loss improved to USD 9.5 million, a USD 10.6 million year-over-year improvement.

• Net cash from operations increased to USD 305 million, with liquidity at year-end of USD 458 million and an equity ratio of 15%.

• EBITDA was USD 156.6 million, up from USD 139.9 million year-over-year.

• Net finance cost improved to USD 6.7 million from USD 11.3 million in 2024.

Outlook and guidance

• Profitability is expected to improve in 2026, with a return to profit anticipated, driven by stronger passenger network performance and continued transformation benefits.

• Unit revenue growth is forecast to outpace unit cost increases, supported by a strong hub position and rebalanced summer schedule.

• Capacity planned to increase by 2% in 2026, focusing on markets to and from Iceland, with growth mainly from European destinations and off-peak seasons.

• No narrow EBIT guidance provided due to industry volatility, but the long-term target remains an 8% EBIT margin through the cycle.

• January 2026 started strong, with yields up 7% and passenger numbers up 14% year-over-year.