• Improved profitability in all business segments year on year and results in line with management expectations

• EBIT improvement of USD 6.6 million, EBIT in Q1 negative by USD 62.3 million

• Net loss improved by USD 15.3 million year on year

• Unit cost (CASK) decreased by 3%, and unit revenue (RASK) increased by 1% year on year

• The transformation journey continued to contribute positively to unit cost development and revenue generation

• Revenue increase of 11%, total revenue USD 286 million

• Record passenger revenue USD 214 million, up by 8% from last year

• Cash flow from operations USD 204 million, up by USD 58 million between years

• Record liquidity position in Q1 of USD 510 million at end of the quarter

• Capacity increased by 7% in the passenger network, delivering a record number of passengers, 828 thousand, up by 9% between years

• Four new Airbus A321LR aircraft added to the fleet before the start of summer season

• Based on current bookings, profitability in the second and third quarters expected to improve year on year. Due to uncertainty in long-term demand trends, it remains a challenge to forecast Q4 results. A full year guidance will therefore not be reaffirmed at this time

Bogi Nils Bogason, President & CEO
“We achieved improved results in all business segments in the first quarter. It is great to see unit cost continue to decrease despite inflationary pressures and cost increases. This is the result of our focus on improving our operational and financial performance. At the end of the first quarter, we had already implemented improvement initiatives that will deliver over USD 40 million in annual impact, and we expect to deliver a total of USD 70 million in annual impact by the end of 2025. We are not stopping there and have numerous further improvement initiatives already in the pipeline.

The booking status for the summer season in the markets to and from Iceland is stronger than at the same time last year and we expect profitability to improve in the second and third quarters. We are, however, seeing slower pace of longer-term bookings, in the fall and into the winter, which reflects the uncertainty in the global economy. Our focus is first and foremost on the areas of the business that we can control, where we are already making good progress. Part of that effort is to further align our costs and service offering to the environment in which we operate and adjust our capacity to demand in line with market developments. Furthermore, we are diversifying our revenue streams, for example by strengthening our global airline partnerships, which also open new travel opportunities for our customers. Nashville, Tennessee, a new destination we launched in April, is a great example of how we connect into the extensive route network of our new partner, Southwest Airlines. The Southwest partnership only started in February, and we already have bookings to over 70 airports in North America through that partnership. Later this year, we will start operating to Istanbul where we will build on our partnership with Turkish Airlines on connections into Asia.

I would like to thank our employees for their dedication and hard work, and our customers for their loyalty. I am confident that our improvement initiatives, in addition to our ability to adapt to the dynamic market we operate in, will enable us to address the challenges and seize the opportunities ahead, drive profitability and create long-term value for our shareholders and the Icelandic economy and society.”

Investor presentation 30 April 2025
An investor presentation will be webcast in relation to the publication of the Q1 2025 results at 8:30 GMT on Wednesday, 30 April 2025, at http://icelandairgroup.com. Bogi Nils Bogason, President & CEO of Icelandair, and Ivar S. Kristinsson, CFO, will present the Company’s results and answer questions. The presentation will take place in English and will be accessible after the meeting on the Company’s website and under Corporate News on the Nasdaq Nordic website:
http://www.nasdaqomxnordic.com/news/companynews