Q2 2025 Icelandair Group hf Earnings Call Transcript
Key Points
- Passenger revenue reached a record $393 million, marking a significant achievement for Icelandair Group hf (OISE:ICEAIR).
- The company maintained a very strong balance sheet with record liquidity of $572 million at the end of Q2.
- Cargo and leasing segments continue to perform well, with leasing revenue up 46% compared to last year.
- On-time performance was 87.2%, and Icelandair was rated the most punctual airline in Europe in April and June.
- Passenger traffic measured in RPKs rose by 14%, with a 13% year-over-year increase in passenger network capacity.
- EBIT was negatively impacted by currency fluctuations, particularly the strengthening of the Icelandic krona.
- There was softer demand and yield pressure on the transatlantic market, affecting overall profitability.
- Operating expenses, excluding depreciation, increased by 13%, with salaries and related costs rising by 16%.
- The company faces pressure on yields in the via market due to geopolitical situations affecting transit travel.
- The appreciation of the Icelandic krona has posed challenges for export sectors, including tourism, impacting financial results.
Good morning, and welcome to Icelandair's presentations of the Q2 results. I'm Bogi Nils Bogason, CEO of Icelandair, and with me here is our CFO, Ivar Kristinsson. We will begin with the presentation and followed by the Q&A session. Please send us questions -- your questions to [email protected].
And here on this slide, we see a snapshot of our performance in Q2. Passenger revenue reached a record $393 million. Cash flow from operations was very strong, 7% higher than last year. Net profit rose to $13 million, but EBIT was negatively affected by currency fluctuations and softer demand on the yield pressure and yield pressure on the transatlantic market.
Cargo and leasing segments continue to perform very well and on-time performance was 87.2% and we were rated the most punctual airline in Europe in April and June by Cirium. And thanks to our great team for excellent work there. And we maintained a very strong balance sheet with record of liquidity of $572 million at the end of quarter 2.
Ivar, over
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