• Revenue increase of 6% with total revenue of USD 585.3 million
• Record passenger revenue of USD 522.1 million and unit revenue (RASK) up by 4%
• Net profit of USD 57.3 million, down by USD 11.9 million year-over-year
• EBIT of USD 74.4 million, compared to USD 83.5 million in Q3 last year, affected by negative currency effect of USD 10 million and specific adverse cost impacts
• Transformation initiatives implemented by the end of Q3 are expected to deliver over USD 100 million in annual impact
• Number of passengers 1.7 million, up by 2% with strong demand to and from Iceland
• Icelandair was the most punctual airline among larger airlines in Europe in July and September, according to Cirium
• Liquidity position of USD 502.8 million at the end of the quarter, a USD 107 million improvement year on year
• EBIT for the full year expected in the range of negative USD 10-20 million

Bogi Nils Bogason, president & CEO

“Revenue increased year-on-year despite fare pressure in the transatlantic market, but costs were adversely affected by several factors. This led to the results for the third quarter being below our expectations. However, we saw improved efficiency, which was reflected in fewer FTEs despite more capacity than last year and outstanding on-time performance. Our cargo operation continued to show improvement, and the leasing business delivered strong results.

After eight years of unsustainable financial performance, our focus is clear – to turn the Company around to profitable operations, no later than next year. To achieve this, we have rationalized our capacity for 2026, reduced the fleet by two aircraft, and have decided to cease the operation of our widebody Boeing 767 aircraft at the end of 2026. At the end of the third quarter, we had carried out initiatives under our transformation program that are expected to deliver over USD 100 million in annual impact when fully implemented. We are not stopping there, and with the goal of making all cost items competitive, further actions are already underway. We are now entering into critical negotiations with our key unions that will impact the future of Icelandair. A key lever for Icelandair to achieve profitability and secure long-term growth is that the new collective bargaining agreements will enable competitiveness in a challenging industry, support fleet commitments, and at the same time continue to provide attractive jobs and good working conditions.

Although the operating environment will remain challenging, we see opportunities in a more rational capacity environment to and from Iceland. Under these market conditions, our focus is first and foremost on the markets to and from Iceland where we are increasing flights to Southern Europe and Scandinavia, and reducing capacity on North American routes while conditions are challenging on the transatlantic market. However, international competition remains strong with over 20 airlines flying to and from Iceland all year round. Therefore, improving the competitiveness of the Company remains a clear priority going forward. I am confident that with this focus, coupled with a strong financial position, we are well-equipped to turn the Company around and deliver profits in 2026.”

Investor presentation 23 October 2025

An investor presentation will be webcast in relation to the publication of Q3 2025 results at 8:30 GMT on Thursday, 23 October 2025, at https://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