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Icelandair Reports Record $560m Revenue in Q3

  • Airlines
  • 3 min read

Icelandair reports the highest revenue quarter ever with a profit of USD 85 million in Q3 2023

Icelandair Places First-Ever Airbus order of 13 A321XLRs
Icelandair reports the highest revenue quarter ever with a profit of USD 85 million in Q3 2023
First-ever Airbus order for Icelandair. 13 A321XLRs. Source: Airbus
  • Profit of USD 84.5 million, up by USD 26.6 million year-on-year
  • EBIT of USD 112.0 million compared to USD 92.7 million last year
  • Total revenue of USD 560.4 million, the highest in history in one quarter, and increased by 17%year-on-year
  • Record Q3 unit revenue (RASK) of 9.3 US cents, increasing by 1% between years;
  • passenger unit revenue increased more, by 3%
  • Cargo operation had a negative impact on EBIT by USD 6.7 million
  • 1.5 million passengers carried
  • 16% increase in the market to Iceland
  • Equity ratio increases to 21% compared with 19% at the beginning of the year
  • Strong liquidity position of USD 423.7 million
  • EBIT ratio for the full year 2023 forecasted 3.3 – 4.3%

Comments from Icelandair CEO

Bogi Nils Boganson, President & CEO, said of the results: “We are pleased to deliver such strong results in our largest and most important quarter. Profits were driven by strong revenue generation in our passenger network, resulting in the strongest revenue in one quarter in our history. Our route network operations were robust in the quarter, with improved on-time performance.

“Our flight schedule was also the largest ever in terms of trips. We transported 1.5 million passengers to 49 destinations in Europe and North America. We recruited around 1,000 employees for the high season, bringing the total number of employees to around 4,400 during the summer.”

Cargo Continues to Pose a Challenge

The weak global cargo market affected the airline’s results.

“Our cargo business continued to be challenging and negatively impacted our financial performance. We are taking actions to improve the operation, including adjusting capacity to demand. However, the results of our leasing operation continued to be favorable,” Boganson said.

Passenger Network Outlook is Positive

“The outlook in our passenger network is good and the booking status throughout the year and into next year is stronger than at the same time last year. We see continued strong demand in the tourist market to Iceland, especially from North America. Rapid growth has characterized our operations in the past years, with our flight schedule almost tripling in the past two years,” Boganson continued.

“We are expecting moderate growth next year and therefore see opportunities to improve operational efficiency. We will increase our capacity by around 10% next year and will add frequency to existing destinations as well as add some new and exciting ones that will be announced soon.

“With our strong financial position, clear strategy and focus, extensive sales network, and strong airline partnerships, we are well positioned for the future. I would like to thank our customers for continuing to choose Icelandair and our employees for their great work this summer. I look forward to our continued pursuits together.“

Icelandair Q3 2023 Financial Results Presentation

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