Icelandair Group Hf · OMXICE:ICEAIR
Icelandair Group Hf — Q1 2022 Earnings Presentation
19 slides from Icelandair Group Hf's earnings presentation, Apr 29, 2022
Slide 1: Q1 2022 results
Q1 2022 results 29 April 2022 1
Slide 2: Highlights
Highlights Significant revenue and Liquidity and financial Clear signs of load factor improvement position strong pent-up demand EBIT negative of USD 58 million Total liquidity USD Load factor continues to improve in April 383.0 million Revenue almost tripled Bookings continue to materialize later E
Slide 3: Financials
Financials Ívar Sigurður Kristinsson, CFO 3
Slide 4: EBIT negative USD 58 million
EBIT negative USD 58 million Operating income increasing by USD 101 million. Cargo and Leasing both profitable during the quarter Profit loss statement EBIT USD million USD million • Operating income almost tripled between USD million Q1 2022 Q1 2021 Change years Transport revenue 125.2 36.8 88.4 Ai
Slide 5: Capacity in the route network increased ninefold between years
Capacity in the route network increased ninefold between years and reached 58% of 2019 levels Passenger mix Freight ton kilometers Sold block hours CO2 emissions Thousands FTK ´000 Leasing operation Per OTK* To From Via Within 422 33,694 33,739 3,433 1.6 3,224 47% 0.9 20% 66 21% 12% Q1 2021 Q1 2022
Slide 6: Positive RASK development in the low-season first quarter
Positive RASK development in the low-season first quarter Yield and load factor improves within the quarter RASK* Load factor Load factor 2022 Positive RASK development US cent % Q1 2021 vs Q1 2022 % per month and Q1 during the quarter • Strong revenue management 6.9 with the load factor steadily 6.
Slide 7: CASK development impacted by high fuel price, seasonal capacity fluctuations
CASK development impacted by high fuel price, seasonal capacity fluctuations and investment in peak season Q3 capacity in relation to Q1 capacity significantly larger in 2022 than in “usual” year CASK* Planned Q3 capacity growth Main changes in CASK US cent as % of Q1 2017-2022 • 19% less production
Slide 8: Salaries and salary related expenses USD 66.2 million
Salaries and salary related expenses USD 66.2 million Number of employees increased by 183 during the quarter Salaries and related Average # of full-time employees Continued ramp up of capacity USD million capabilities and infrastructure +30.9 +935 66.2 • The average number of full-time 2,486 employ
Slide 9: High fuel price and more production driving higher fuel cost
High fuel price and more production driving higher fuel cost Fuel cost Hedge position Average fuel and EUA credit prices USD million Overview ton, hedge %, strike price $/mt Market and effective: USD / mt EUA: EUR / credit +37.5 91 1,200 45.3 Market price 84 20,553 20,500 Effective price 80 1,100 EU
Slide 10: Total liquidity USD 383 million at the end of Q1 2022
Total liquidity USD 383 million at the end of Q1 2022 Government guaranteed credit facility terminated in the quarter Total liquidity Liquidity development Breakdown in USD million Development in Q1 2022 in USD million 435 383 120 52 64 39 84 62 8 52 58 383 383 Government guaranteed credit facility
Slide 11: Seasonality and aircraft acquisition drive larger balance sheet
Seasonality (build up of forward bookings) and aircraft acquisition drive larger balance sheet Assets Equity ratio Financial liabilities Net financial liabilities USD million USD million USD million Non-current assets Equity ratio excl. warrants Interest bearing debt Current assets Equity ratio Leas
Slide 12: Business update and outlook
Business update and outlook Bogi Nils Bogason, CEO 12
Slide 13: Moving towards "normal" operations
Moving towards “normal” operations ~2,500 45 49 644 412 Full time Aircraft Destinations Network Weekly departures employees connections peak season 13
Slide 14: Ambitious summer schedule
Capacity total route network In available seat kilometers (ASK’000) per month Ambitious 1,800 summer 1,600 schedule 1,400 2022 2022 1,200 1,000 800 600 2021 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 58% of 2019 77% of 2019 85% of 2019 14
Slide 15: Clear signs of pent-up demand for travel
Clear signs of pent-up demand for travel Load factor continues to improve in April booked load factor 2019 compared to previous months Bookings continue to materialize later than pre-Covid Clear signs of pent-up demand particularly in the markets “to“ and “from“ Iceland Booked load factor 2022 as %
Slide 16: Positive outlook in Cargo and leasing
Positive outlook in Cargo and leasing Cargo operation • Favorable outlook for 2022 • Demand expected to be strong in all markets • Capacity will be increased in Q4 with the addition of two B767-300 freighters Leasing operation • Outlook improving in the global market for ad-hoc and long-term charter
Slide 17: Outlook
Outlook Accumulated net profit in Q2 and Q3, the latter one significantly stronger Geopolitical unrest in Europe causing considerable uncertainty post high season A full year guidance therefore not published 17
Slide 18: Q&A
Q&A 18
Slide 19: Disclaimer
Disclaimer | This material has been prepared by Icelandair Group hf. Unless stated otherwise all information is sourced by Icelandair Group hf. | The circulation of the information contained within this document may be restricted in some jurisdictions. It is the responsibility of the individual to c