• Net profit USD 13 million, up by USD 12 million year on year
• Revenue increase of 13%, total revenue USD 463 million
• Record passenger revenue of USD 393 million, up by 11% from last year
• EBIT was negatively impacted by the strengthening of the Icelandic Krona and softer via demand due to the geopolitical environment
• Unit cost (CASK) remained unchanged compared to last year and unit revenue (RASK) decreased by 2% year on year
• The most punctual airline among larger airlines in Europe in April and June with on-time performance of 87.2% according to Cirium
• Cash flow from operations USD 118 million, up by USD 8 million between years
• Record liquidity position of USD 572 million at the end of the quarter
• Transformation initiatives that have already been implemented expected to generate more than USD 90 million annually
• Change in the capacity to and from Iceland strengthening Icelandair’s leading hub position
• Bookings for the third quarter are ahead of last year, while long-term bookings are slower
• EBIT for the full year expected near breakeven

Bogi Nils Bogason, President & CEO
“The second quarter resulted in improved profitability with net profit stronger than last year. The continued focus on efficiency and resilient route network was reflected in outstanding on-time performance, placing us as the most punctual airline among larger European airlines in April and June, which is a testament to our team's commitment to reliable service. However, the operating results, EBIT, were negatively impacted by softer travel demand in the via market due to the current geopolitical environment and by the strengthening of the Icelandic Krona.

The real exchange rate of the ISK is now near historical high. This level of appreciation has historically proven unsustainable and poses challenges for export-driven sectors. It is therefore critical that economic policy reflects these realities – especially in light of the Icelandic Government’s announced plans to increase taxation on the tourism sector.

In this environment, our continued focus on areas that are in our control, such as strict cost management, operational efficiency, prudent capacity allocation and strengthened revenue generation, is more important than ever. At the end of the second quarter, we had already carried out initiatives that are expected to deliver USD 90 million in annual impact when fully implemented. We continue to turn every stone with the aim of ensuring that all our cost items are competitive. In the third quarter, we will enter into negotiations of our collective bargaining agreements with pilots and cabin crew. I am confident that we will reach the joint goals of all parties to ensure the Company’s long-term competitiveness in our ever-changing dynamic industry and at the same time continue to offer attractive compensation and a great workplace.

Bookings in the third quarter are ahead of last year and we expect profitability to improve year on year in the quarter. Longer-term bookings into the fall and winter continue to be slower than at the same time last year. Looking ahead, we are optimistic as consumers continue to prioritize travel, although they are booking closer to departure. With a more favorable capacity environment to and from Iceland and an ambitious transformation plan well underway, we are well positioned to manage near-term uncertainty, strengthen our market position, and drive long-term value for shareholders, customers, and the Icelandic economy.”
 
Investor presentation 18 July 2025
An investor presentation will be webcast in relation to the publication of Q2 2025 results at 8:30 GMT on Friday, 18 July 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