Icelandair: Short-term booking flow slowing but net profit still expected

Seismic activity has been ongoing in Southwest Iceland. Currently this activity has not impacted flight operations at Keflavik International airport and all Icelandair flights are operating as normal. Due to this situation, however, booking flow for inbound tourists to Iceland has slowed significantly for the near-term. Bookings during the winter months are made close to the date of travel. Thus, the current situation affects revenue generation for the remainder of the year, as tourists to Iceland are an important factor in revenue generation for November and December.

With this situation ongoing, the guidance provided to the market on 13 September 2023 no longer applies and because of the uncertainty it is not possible to provide an accurate guidance for the full year. However, the Company still expects to return net profit after taxes in 2023.

Bogi Nils Bogason, President & CEO of Icelandair:

"We would like to emphasize that the seismic activity in Southwest Iceland has had no impact on flights to and from Iceland and the country is welcoming visitors. These events have, however, impacted the lives of people living in the town of Grindavik that has been evacuated and our thoughts are with them. As a leading airline in Iceland for decades, we are used to dealing with the natural elements and are well prepared for various different scenarios. We are in close contact with the authorities and scientists that are closely monitoring the situation and in the event of any changes to our schedule, we will communicate via our normal channels.”

Contact Information 
Investors: Iris Hulda Thorisdottir, Director Investor Relations. E-mail: iris@icelandair.is 
Media: Asdis Petursdottir, Director Communications. E-mail: asdis@icelandair.is