Q1 2026 Icelandair Group hf Earnings Call Transcript
Key Points
- Icelandair Group hf (OISE:ICEAIR) delivered a strong first quarter with record revenue and outstanding on-time performance.
- The EBIT margin improved by more than six percentage points year-on-year, marking the best first quarter EBIT margin since 2016.
- Passenger traffic grew across all markets, with particularly strong momentum in the 'from' market, which grew 26%.
- Liquidity reached an all-time high at the end of the quarter, with cash and marketable securities totaling 524 million.
- The company has implemented over 300 initiatives from its ONE transformation program, estimated to deliver an annual impact of 170 million.
- Net loss was marginally higher than last year, driven by lower currency gains compared to the previous year.
- Operating expenses grew by 16%, which was slower than revenue growth but still significant.
- The company faces considerable uncertainty with fuel prices due to geopolitical conflicts, impacting financial outlook.
- Salary expenses increased by 18% due to contractual wage increases and unfavorable currency developments.
- Negotiations with unions representing pilots, cabin crew, and mechanics are ongoing, adding uncertainty to labor relations.
Good morning and welcome to our presentation of the first quarter of this year.
Time flies, one more quarter under the belt. My name is Bojan Niels Borson and I'm joined by our CFO, as usual, Ãvar S. Kristinsson and we will go through the presentation and following that we will have a Q&A session and please send us your questions to [email protected].
We can proudly say that Icelandair delivered a strong first quarter with record revenue.
Outstanding on-time performance and continued efficiency improvements.
EBIT margin improved more than six percentage points year on year, the best first quarter EBIT margin since 2016.
And turning to some of the key numbers from Q1, high yields and load factor drove a 7% increase in RUSC, while total revenues were up 21% on 30% production growth. CASC was flat year-on-year, despite considerable salary increases and unfavorable currency developments, a clear demonstration of the efficiency improvements that we have been focusing on.
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