Icelandair Group Financial Results for the first half and Q2 2007
• Total revenue for H1 2007 was ISK 28.1 billion compared to ISK 24.1 billion
for H1 2006, an increase of 17%. Total revenue for Q2 2007 was ISK 16.2
billion compared to ISK 14.5 billion for 2006, an increase of 12%
• EBITDA for H1 2007 was ISK 1.2 billion compared to ISK 1.3 billion for H1
2006. EBITDA for Q2 2007 was ISK 1.3 billion compared to ISK 1.6 billion for
Q2 2006.
• EBIT was negative by ISK 197 million in H1 2007, a difference of ISK -180
million compared to H1 2006. EBIT was ISK 636 million in Q2 2007 compared to
ISK 1.1 billion in Q2 2006.
• Net loss in H1 á 2007 was ISK 1 billion compared to a net profit of ISK 658
million in H1 2006. Net profit in Q2 2007 was ISK 205 million compared to ISK
1.2 billion in Q2 2006.
• Total Assets at the end of H1 ISK 71.6 billion compared to ISK 76.6 billion
at year end 2006.
• The acquisition of the Czech airline Travel Service being finalized.
• Nordica becomes Hilton Reykjavik Nordica
• Equity ratio is 33% at the end of H1 compared to 34% at year end 2006.
• Net operating cash ISK 3.6 billion at the end of H1 2007 compared to ISK 3.9
billion at H1 2006.
• Changes in the Group organizational structure coming up
• EBITDAR for H1 2007 was ISK 3.7 billion compared to ISK 3 billion for H1
2006. EBITDAR for Q2 2007 was ISK 2.6 billion compared to ISK 2.5 billion
for Q2 2006.
Jón Karl Ólafsson, CEO of Icelandair Group, comments
"The EBITDA of Icelandair Group for the first half of 2007 is in line with
management expectations. However, fluctuation in the exchange rate of the
Icelandic krona has a major impact on our bottom line. Extensive investment in
added capacity and fleet enlargement throughout the Group characterizes the
first six months and opens up new opportunities for increased revenue in the
second half of 2007. Results from our Scheduled Airline Operation are below
expectations as increased network capacity has not led to the passenger revenue
growth we had hoped for. Booking figures for the summer and autumn are looking
better, but we foresee ongoing pressure on yield, due to hard competition.
We are in the latest stages of the acquisition of the Czech airline, Travel
Service, which will become part of the Group in the second half of the year.
This underlines our rapid growth and the need for a new Group organizational
structure which will implemented in the next weeks. We still expect a good
profit in 2007 and a better result than in 2006; however we will have to work
hard to reach our goals in 2007”.
