Skip to content
Home » FlightChicPRO » Icelandair Posts $11m Profits in 2023, Remarkable Turnaround

Icelandair Posts $11m Profits in 2023, Remarkable Turnaround

Despite Seismic Activity Impact, Icelandair Triumphs with Strong Financial Results in 2023

Icelandair has successfully navigated through turbulent skies to report a profit of USD 11 million for 2023. This marks a dramatic recovery from a USD 6 million loss in the previous year, showcasing the airline’s resiliency and adaptability.

Icelandair Places First-Ever Airbus order of 13 A321XLRs
Icelandair Places First-Ever Airbus Order of 13 A321XLRs

Icelandair Record High Revenues

The airline’s financial comeback can be attributed to its exceptional revenue performance, achieving record high unit revenues. Additionally, Icelandair’s customer base expanded significantly, with the carrier serving 4.3 million passengers, a substantial 17% increase from the prior year.

Further highlighting Icelandair’s operational efficiency is an improved load factor — the average number of seats filled per flight — which reached 81.5%, an increase of nearly two percentage points.

Despite facing challenges such as a volcanic eruption, increased seismic activity in Southwest Iceland, and labor strikes by air traffic controllers in the fourth quarter (Q4), the airline’s full-year results remained robust. Although these events affected the Q4 earnings, with a USD 50.3 million negative EBIT (Earnings Before Interest and Taxes), Icelandair’s overall yearly performance was solid.

Regarding operational growth, the final quarter saw a 13% rise in capacity and a 12% increase in the number of passengers compared to the same period in the prior year.

Icelandair reported a strong financial cushion to cap off the year, with a liquidity position of USD 323 million. This financial strength positions Icelandair well for sustainable growth and potential future challenges.

Icelandair’s 2023 financial results reflect a company with a sound strategy, operational excellence, and a customer-first approach.

Comments from Bogi Nils Bogason, Icelandair President and CEO on Icelandair Profits

“It is an important milestone to turn a profit after taxes in 2023 following many challenging years. Revenue generation was very strong during the year, with strong demand in all our markets, especially from North America to Iceland. In addition, we achieved the best on-time performance for years, with Icelandair being named one of the top 10 most punctual airlines in Europe in 2023.”

Impact of Seismic Activity

“Our core business performed well in 2023, especially in light of the impacts of external challenges and negative results in the cargo operation that we have already acted on. Following one of the strongest third quarters in our history, the fourth quarter started off well. However, when the seismic activity in Southwest Iceland started in November with the consequent global media coverage, demand weakened and, thereby, revenue generation was negatively affected. In addition, the impact of labor actions by air traffic controllers in Iceland and a volcanic eruption in December was significant. Furthermore, the capacity increase seen in key markets inevitably puts pressure on unit revenue.

“The results in the fourth quarter were, therefore, below expectations and impacted the full-year results. There are exciting times ahead, although the first part of the year will be challenging due to the aforementioned impacts that will continue into the first quarter.”

Set to Meet Challenges Ahead

“We are in a good position to respond to the challenges and seize the opportunities ahead with our flexibility to adapt to the situation at any given time. Aviation and tourism are very important industries for the Icelandic economy and society. The tax footprint of Icelandair was USD 401 million in 2023 and tourism accounts for a significant proportion of Iceland’s export revenue. It is therefore key to ensure the competitiveness of these industries into the future.

“An important part of that is to reach an effective solution on the collective bargaining agreements that are currently being negotiated in Iceland and the successful easing of inflationary pressures in the country.”

Positive Outlook for 2024

“The outlook for the summer is good. The demand for travel to Iceland is recovering following last weeks’ events, with Iceland continuing to be a popular destination. We are also seeing a higher proportion of bookings on the via market than before. Our flight schedule in 2024 will be around 11% larger than in 2023 with 57 destinations, thereof three new – Pittsburgh, Halifax and the Faroe Islands.

“I look forward to our endeavors in 2024 with our outstanding team of employees and I would like to thank them for their incredible resilience and great work during challenging times in 2023. I would also like to thank our partners, shareholders and last but not least our customers for choosing Icelandair.“

Icelandair 2023 Results Presentation

Icelandair 2023 Financial Results

people inside a commercial airplane
IATA: All Regions Show Strong Growth In Airline Passenger Demand

The International Air Transport Association (IATA) reported a significant increase in global airline…

Read More
PLAY’s Revenues Increased 66% Compared To Q1 Last Year

Fly Play hf. has published its financials for the first quarter of 2024. The airline experienced sub…

Read More
Finnair: Strikes Hurt Q1 Revenue & Result

Finnair reports on Q1 yields and operating cash flow remained good. Strikes hurt revenue and result.…

Read More
Norwegian Group Airlines Served 1.8 Million Passengers In March

In March, Norwegian had 1,544,289 passengers, while Widerøe had 276,413 passengers, totaling 1,820,7…

Read More
Finnair Sees Drop In Passengers, Rise In Cargo in March

Finnair’s year-on-year passenger traffic figures declined, but cargo figures improved.  Finnai…

Read More
Swedavia Airports Greeted Almost 2.5 Million Passengers In March

March saw a rise in travelers using Swedavia’s airports, reaching nearly 2.5 million passenger…

Read More
Copenhagen Airport Revenue Rises By 15% With Strong Passenger Demand

Copenhagen Airport reported a pre-tax profit of DKK 398 million ($56.9 million) for 2023, signaling …

Read More
AEGEAN Posts €168,7 Million Profit In 2023 With 15+ Million Passengers

AEGEAN delivers strong operating results and profitability in 2023, with 3 million more seats offere…

Read More
cabin of aircraft with passengers on board
IATA Reports Strong Air Travel Demand Strong In January

The IATA January 2024 passenger traffic report shows strong global demand for air travel. “2024 is o…

Read More
Norwegian Group Reports Strong February With 1.5m Passengers

Norwegian Group has published its February results, showing passenger growth and benefits from integ…

Read More
Strong Start For Air Cargo In 2024, IATA Reports

The International Air Transport Association (IATA) reported an impressive increase in global air car…

Read More
IAG Full Year 2023 Financial Results Show Strong Growth

The International Airlines Group (IAG) has published its full-year 2023 financial results, showing a…

Read More
Qantas Group Profit Drops 13% In H1 FY24

Qantas Group has published its HQ FY24 results, showing a 13% drop in profits partially offset by fr…

Read More
Qantas Reveals New A220 Cabin And Wi-Fi Plans

Qantas Group has presented its H1 2024 update while updating fleet plans, revealing the new A220 cab…

Read More
Malaysia Airlines Picks Thales Flight Safety Systems For A330neo

Malaysia Airlines Enhances A330neo Fleet with Thales Avionics for Improved Safety and Navigation Mal…

Read More

Norwegian Sees 19% Capacity Rise & 16% Passenger Traffic Growth In May 2024

Norwegian had 2,138,484 passengers in May, and Widerøe had 333,492, totaling 2,472,976. Norwegian&#8…

Air Canada Enhances Economy Experience: Free Premium Snacks & Drinks

Air Canada is enhancing its Economy experience by offering premium complimentary snacks, expanded co…

Mirus Hawk LR: Enhanced Comfort Economy Seat for Widebody Aircraft

Mirus Aircraft Seating, one of the fastest-growing aircraft seating OEMs, has launched the Hawk LR. …

British Airways Lagos Lounge: Luxurious Refurbishment and Local Art

British Airways has unveiled a luxuriously refurbished lounge in Lagos airport, featuring upgraded f…

Air France Unveils New Embraer 190 Cabins for Improved Passenger Comfort

On 28 May 2024, Air France showed new cabins for its Embraer 190s at the Aircraft Interiors Expo in …

New Air Transat and Porter Airlines Partnership Offers Expanded Travel Choices

Air Transat and Porter Airlines have begun their joint venture, allowing travelers to book flights t…

Air Arabia Will Add Panasonic Wireless Entertainment On 172 Planes

Air Arabia And Panasonic Avionics Announce 172 Aircraft In-flight Wireless Entertainment Deal During…

Best Innovations In The Sky: The 2024 Crystal Cabin Award Winners

The Crystal Cabin Award 2024, the most prestigious award for cabin technology and passenger experien…

Burrana Brings Power To Cayman Airways’ Boeing B737-MAX 8s

Burrana successfully installed in-seat power on four B737-MAX 8 aircraft for Cayman Airways. This up…

Leave a Reply

Your email address will not be published. Required fields are marked *

Cookie Consent with Real Cookie Banner