• EBIT USD 92.7 million with 19% EBIT margin; improving by USD 84.5 million year-on-year
• Record passenger revenue USD 408.3 million
• Record load factor and high unit revenue
• Number of passengers 1.4 million; more than doubling from last year
• Unit revenues up by 38% year-on-year while unit cost excluding fuel decreased by 8%
• Strongest cash position ever at the end of Q3
• Well positioned to weather headwinds and seize opportunities in the coming months

BOGI NILS BOGASON, PRESIDENT & CEO

Delivering such robust financial result driven by record revenues, clearly demonstrates the strength of our business model. By using the flexibility of our route network and operations, we were able to make the most of opportunities in all our markets in the quarter.

We reached 82% of 2019 capacity and more than doubled the number of passengers between years. It is great to see how fast our transatlantic market has recovered, accounting for 43% of the total number of passengers in the quarter. Continued improvement of revenue generation from our Saga Premium product positively impacted unit revenue. Furthermore, our cargo and leasing businesses continued to strongly complement our revenue generation.

Achieving these results against a backdrop of considerable challenges during the ramp-up phase has required a joint effort across the Company. Disruptions at airports and in supply chains impacted our operations as well as our customers’ experience. I would like to thank our employees for the dedication and hard work over the past weeks and months, our customers for their trust and patience, and our tourism partners for their great cooperation in quickly ramping up tourism services in Iceland.

The booking status in the fourth quarter is strong although we are expecting some headwinds this winter. The operating environment will remain challenging, where we are seeing interest rates and various costs on the rise which will most likely impact demand. We, however, believe there will continue to be great opportunities for Iceland as an attractive destination and we have a strong foundation to build on. Our financial position is robust with strong liquidity and our extensive route network, as well as our flexibility allows us to move quickly and adjust our operations and services to the situation.

WEBCAST 21 OCTOBER 2022

An investor presentation will be webcast in relation to the publication of the results at 8:30 GMT on Friday, 21 October 2022, at http://icelandairgroup.is. Bogi Nils Bogason, President & CEO of Icelandair Group, and Ivar S. Kristinsson, CFO, will present the Company’s results and answer questions. The presentation and Q&A will take place in English.

INFORMATION

Investors: Íris Hulda Þórisdóttir, Director of Investor Relations. E-mail: iris@icelandair.is
Media: Ásdís Pétursdóttir, Director of Communications. E-mail: asdis@icelandair.is