* The total turnover of the Company was ISK 14 billion, increasing by 18% from
the corresponding quarter of last year
* Owing to seasonal fluctuations in flights and tourism, results are normally
negative in the first quarter, and at this time EBITDA was negative by ISK
857 million
* EBIT was negative by ISK 1.7 billion
* Losses after taxes amounted to ISK 1.7 billion, as compared to ISK 1.2
billion for the corresponding period of the preceding year.
* No sales profit of aircraft entered into books in the first quarter 2008,
1.2 billion in the first quarter 2007.
* Core operations stronger
* Assets amounted to ISK 73.8 billion at the end of Q1, as compared to ISK 66.8
at year-end 2007
* The equity ratio was 34%
* Net cash from operations was ISK 3.1 billion
* Icelandair Group's organisation chart has been streamlined, Sigþór
Einarsson becomes deputy CEO
* New managers have been appointed at Icelandair and restructuring projects
have been launched
* The first Boeing 787 Dreamliner aircraft has been leased out
Björgólfur Jóhannsson CEO of Icelandair Group:
“Icelandair's operation in the first quarter was somewhat better than
anticipated in much more difficult conditions than last year. The Company's
fuel costs have increased by just short of ISK one billion from the
corresponding period of 2007, and in addition gains on sold assets amounting to
ISK 1.2 billion were entered in the book in Q1 of last year.
Our backlog in charter operations is good, and the same is true of the booking
position in Scheduled Airline. However, we foresee continued high fuel prices,
and we are working on the assumption that these prices, together with the
uncertain economic climate, will impact demand in airline services and tourism.
One of our principal challenges now is to react to the changed circumstances
and prepare the Company for a new future.
We are in the process of adapting the companies within Icelandair Group to the
new reality through streamlining and improved flexibility. We have simplified
the structure of the Group, and Sigþór Einarsson becomes the Groups´ deputy
CEO. The recently appointed CEO of Icelandair, Birkir Hólm Gudnason, has
already made changes in Icelandair and there are further changes ahead. An
agreement has been concluded on leasing the first Boeing 787 Dreamliner that
the company has on order. Icelandair Cargo growth plans have been discontinued.
A decision has been made for the company to re-enter the travel agency market.
Short-term wage contracts have been negotiated with airline staff.
Through these and other actions we are solidifying our core operations,
reducing risk and strengthening Icelandair Group for the future.
