The current prospects for Icelandair Group‘s operations for the year 2019 are more favourable than anticipated when last EBIT guidance was issued. Based on current assumptions, the Company is projecting its EBIT to be in the range of negative USD 35-55 million for 2019, including the estimated net impact quantified to date of the suspension of the Boeing 737 MAX aircraft.
Although the interim financial statements for the third quarter are not fully finalised, the third quarter results show that EBIT and net profit levels are similar as compared to the same quarter last year, despite the significant impact of the suspension of the MAX aircraft net of the partial compensation from Boeing that was announced in September. Furthermore, improved performance is anticipated in the fourth quarter as compared to the same quarter last year. One of the main reasons is the delayed return to service of the MAX aircraft until the end of February 2020 and thus that the associated implementation costs will be incurred in 2020 instead of this year. Other reasons include optimisation of the route network, improved revenue management and that the actions taken to mitigate the impact of the MAX suspension are starting to materialise. Therefore, the revised estimated EBIT impact of the MAX suspension quantified to date is around USD 110-120 million for the year 2019.
Icelandair Group will publish its results for the third quarter of 2019 on Thursday 31 October 2019.
Information:
Investors: Íris Hulda Þórisdóttir, Head of Investor Relations, E-mail: iris@icelandairgroup.is
Media: Ásdís Pétursdóttir, Corporate Communications Officer. E-mail: asdis@icelandair.is