Icelandair Group results for the second quarter of 2008
•Better results than last year
•Operations adapted to difficult external conditions
•The total turnover of the Company in the second quarter of 2008 was ISK 29
billion, increasing by 79% from the corresponding quarter of last year
•EBITDA was ISK 1.9 billion, as compared to ISK 1.3 billion in the
corresponding period of last year
•EBIT was ISK 901 million, as compared to ISK 636 in the corresponding period
of last year
•Profit after taxes amounted to ISK 395 million, as compared to ISK 205 million
in the corresponding period of the preceding year
•Assets amounted to ISK 89.8 billion in June 2008, as compared to ISK 66.8
billion at year-end 2007
•The Group equity ratio stood at 30% at the end of June 2008, as compared to
37% at the beginning of the year
•EBITDAR for the second quarter of 2008 amounted to ISK 5.3 billion, as
compared to ISK 2.6 billion in the second quarter of 2007.
•The substantial increase in turnover is largely a result of the inclusion of
Travel Service in the Group and the weakness of the Icelandic króna in relation
to other currencies
•The Group's responses to the difficult external operating climate have
returned results, and work is continuing based on an action plan designed to
adapt the Group's operations to difficult economic conditions and high fuel
prices
First half of the year 2008
•The total turnover of the Company was ISK 43 billion, increasing by 53% from
the corresponding period of last year
•Profit from sales of assets over the period was ISK 97 million, as compared to
a ISK 1.3 billion profit from sales of assets over the corresponding period of
last year
•Net cash provided by operating activities amounted to ISK 7.6 billion in the
first half of 2008, as compared to ISK 3.6 billion in the corresponding period
of the preceding year
•EBITDA was ISK 998 million, as compared to ISK 1.2 billion in the
corresponding period of last year
•EBIT was negative by ISK 762 million, as compared to a negative result of ISK
197 million in the corresponding period of last year
•The net loss in the first half of 2008 amounted to ISK 1.3 billion, as
compared to a loss of ISK 1 billion in the corresponding period of last year.
•EBITDAR for the first half of 2008 amounted to ISK 6 billion, as compared to
ISK 3.7 billion in the second quarter of 2007.
Björgólfur Jóhannsson, CEO of Icelandair Group:
“Icelandair Group's second-quarter results show an improvement compared to the
same time last year, which is better than might have been anticipated in the
difficult operating environment of the international aviation industry.
Icelandair Group now operates on all continents with 75% of its operating
revenues deriving from outside Iceland and only 25% from Iceland.
The period was characterised by extensive growth, largely as a result of the
addition of the Czech airline Travel Service to the Group. This is now the
second largest subsidiary of Icelandair Group and showed good second-quarter
results.
Companies within the Group have responded to high fuel prices and dwindling
demand through cost containment and income management. The operation of
Icelandair, the Group's largest company, is in irons, but the company has
launched efficiency measures which look promising.
On the whole, we are witnessing positive results from the diversification of
Icelandair Group and the improving cash position. Work is in progress pursuant
to action plans in all companies and we have a solid team of dedicated
employees who possess the skills to steer the company through the economic
turbulence.”
For further information, please contact:
Björgólfur Jóhannsson CEO of Icelandair Group Tel.: 896-1455
Guðjón Arngrimsson, VP Corporate Communications Tel.: 864-5849
