Icelandair achieves ‘strongest ever’ cash position

Icelandair believes it is “well positioned to weather headwinds” this winter after reporting revenue was up 38% year on year in its latest quarterly results.

The carrier said it had achieved its strongest ever cash position at the end of the third quarter, with earnings before tax and interest at $92.7 million – an increase of $84.5m year on year.

Costs excluding fuel decreased by 8% in the quarter, it added.

During the third quarter, Icelandair reached 82% of its 2019 capacity and said transatlantic routes accounted for 43% of the total number of passengers in the quarter.

President Bogi Bogason said: “Our financial position is robust with strong liquidity and our extensive route network, as well as our flexibility allows us to move quickly and adjust our operations and services to the situation.

“Delivering such robust financial results driven by record revenues, clearly demonstrates the strength of our business model.

“By using the flexibility of our route network and operations, we were able to make the most of opportunities in all our markets in the quarter.”

But he added the operating environment remained challenging, saying: “We are seeing interest rates and various costs on the rise which will most likely impact demand.

“Disruptions at airports and in supply chains impacted our operations as well as our customers’ experience.

“Achieving these results against a backdrop of considerable challenges during the ramp-up phase has required a joint effort across the company.”