Icelandair: financial results Q3 2026

• Record revenue of USD 655.0 million, up 12% year-on-year
• EBIT of USD 120.3 million, improving by USD 45.9 million year-on-year, with the EBIT margin rising to 18.4% from 12.7%
• Profitability improved despite fuel expenses, increasing by USD 12.9 million, net of hedging gains
• Strong commercial performance drove an 18% increase in unit revenue, reflecting a 17% increase in yield and a 0.6 percentage-point improvement in load factor
• Unit cost (CASK) up 10%, primarily driven by higher fuel prices
• Negative EBIT impact of USD 4.0 million due to the strike led by the Association of Aircraft Maintenance Technicians in September
• Net profit of USD 96.7 million compared to USD 57.3 million last year
• Liquidity position of USD 550.3 million at quarter-end, a USD 47.5 million improvement year on year
• The outlook for the fourth quarter is challenging, with profitability expected to be impacted by continued cost pressures, particularly high fuel prices
• For the full-year of 2026, EBIT is expected to be in the range of negative USD 20-30 million

Bogi Nils Bogason, President & CEO:

"Our operations in the quarter were strong and performance in our core business was good despite historically high fuel prices, unfavorable currency developments and industrial actions that negatively affected the results. EBIT improvement, record revenues and a strong liquidity position show that the Company is on the right path. At the same time, our company-wide transformation journey is yielding real results and we can see its effects in many parts of the business.

Given persisting challenges in the operating environment, high fuel prices and unfavorable currency development for Icelandic export companies, we are expecting a loss in the fourth quarter and for the full year. This reinforces the importance of our ongoing actions to reduce costs, simplify the business and improve efficiency. Reaching sustainable collective bargaining agreements is a crucial part of ensuring the Company’s long-term competitiveness and thereby attractive aviation jobs in Iceland.

Parallel to driving efficiencies in our operations, we continue to make structural improvements to the business, including our focus on fleet renewal and preparations for the arrival of the Airbus A321XLR. Our goal is clear: to build a simpler and more efficient Icelandair that is well positioned to capitalize on new opportunities when external conditions improve. A robust financial position, with stronger liquidity position than at the same time last year, gives us a solid financial foundation to build on.

Finally, I would like to thank our employees for their hard work and dedication during the high season and our customers for choosing Icelandair.”

Investor presentation 23 october 2026

An investor presentation will be webcast in relation to the publication of Q3 results 2026 at 8:30 GMT on Friday, 23 October 2026, 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