Q3 2025 Icelandair Group hf Earnings Call Transcript
Key Points
- Icelandair Group hf (OISE:ICEAIR) reported a record passenger revenue of $522 million in Q3, despite fare pressure on the transatlantic market.
- The company achieved improved efficiency in operations, reflected in better resource utilization and outstanding on-time performance, being rated the most punctual airline in Europe in several months.
- Strong liquidity was maintained, with $503 million at the end of the quarter, an improvement of $107 million compared to the same time last year.
- Passenger numbers grew by 2%, with a stable load factor year-on-year of 85.9%.
- The cargo and leasing segments delivered strong performance, with leasing revenue increasing by 5% and the leasing business achieving an EBIT margin of 21%.
- Costs were negatively affected by factors such as a strong krona, salary increases, cost inflation, and nonrecurring items, leading to a 6% increase in CASK.
- Net profit decreased by $11 million year-on-year, amounting to $58 million.
- Operating costs increased by 9% to NOK465 million, with significant contributions from negative currency development and salary increases.
- The company faced challenges in the transatlantic market, leading to a decision to cut capacity slightly to North America and temporarily remove Detroit from the network.
- The EBIT for the full year 2025 is expected to be negative, ranging from EUR 10 million to EUR 20 million, due to various cost pressures and a strong Icelandic krona.
Good morning, and welcome to our presentation of the Q3 results. I'm Bogi Nils Bogason, CEO of Icelandair. And as usual, I have here with me our CFO, Ivar Kristinsson. And we will begin with a presentation of the results, and that will be followed by a Q&A session. And please send us your questions to the e-mail address [email protected].
First of all, here, we see a snapshot of our performance in quarter 3. The revenue increased despite fare pressure on the transatlantic market, resulting in a record passenger revenue of $522 million with RASK by 4%.
However, costs were negatively affected by several factors, such as strong as an krona, salary increases cost inflation and some nonrecurring items. CASK was up by 6%, which led to the results for the third quarter being a little bit below last year. EBIT amounted $74 million with a negative or net -- negative currency impact on that amount of $10 million and net profit was $58 million, decreasing by $11 million between years.
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