Icelandair Group Hf · OMXICE:ICEAIR
Icelandair Group Hf — Q1 2024 Earnings Presentation
21 slides from Icelandair Group Hf's earnings presentation, Apr 24, 2024
Slide 1: Q1 2024 results
Q1 2024 results 24 April 2024 1
Slide 2: Record passenger revenue and positive unit cost development
Record passenger revenue and positive unit cost development Cargo turnaround well under way Record passenger Unit cost Positive turnaround in EBIT development Strong liquidity revenue, up 17% down by 5% profitability of cargo impacted by seismic position activity Total revenue USD million CASK1 US c
Slide 3: Positive trend in important metrics positioning the Company well
Positive trend in important metrics positioning the Company well for strong performance going forward On-time performance Customer satisfaction First choice carrier score1 Employee satisfaction % NPS Sum of "first choice" and "one of few" ENPS – 3 month rolling average "The carrier is my first choic
Slide 4: Financials
Financials Ívar S. Kristinsson, CFO 4
Slide 5: Strong via market with 48% passenger increase year-on-year
Strong via market with 48% passenger increase year-on-year Global media coverage of the seismic activity impacted demand To Iceland Traffic figures – Q1 2024 vs Q1 2023 In percentages Route Cargo & network Leasing 48% 21% 20% 14% 8% 9% 6.4 ppt 0% -1 ppt -2% -1% -9% Available Passenger Load Factor Pa
Slide 6: EBIT slightly worse than last year, main reason being effect of seismic activities
EBIT slightly worse than last year, main reason being effect of seismic activities especially in January Turnaround in the cargo operation with EBIT improving by USD 3.8 million Profit loss statement EBIT USD million USD million • Revenue increase driven by a 21% increase in 2023 the passenger netwo
Slide 7: Lower fuel prices and positive hedges driving fuel costs down
Lower fuel prices and positive hedges driving fuel costs down despite more production Effective fuel price 13% lower than in Q1 2023 Fuel cost main changes Overview hedge contracts and ratio Fuel price USD million Q1 2023 vs Q1 2024 (Hedge %, Strike Price $/mt) USD per m/t Market price Effective pri
Slide 8: Unit revenue impacted by seismic activity in Southwest Iceland
Unit revenue impacted by seismic activity in Southwest Iceland Average yield decreased 1% year-on-year RASK1 Yield2 Load factor Passenger mix US Cents US Cents Absolute figures ´000 +14% -1% -1.1 ppt 757 8% -5% 8.6 8.5 77.8% 76.7% 665 7.6 9% 7.3 38% 43% Within 20% To 21% From Via 35% 27% Q1 2023 Q1
Slide 9: Total liquidity USD 411 million at end of Q1 2024
Total liquidity USD 411 million at end of Q1 2024 Cash and marketable securities increased by USD 89 million during the first quarter Total liquidity Liquidity development Breakdown in USD million Q1 2024 in USD million +89 32 411 27 411 147 52 323 50 323 52 71 +359 309 +271 Undrawn revolving facili
Slide 10: Assets USD 1.7 billion and equity ratio of 14%
Assets USD 1.7 billion and equity ratio of 14% Assets Equity and liabilities 10
Slide 11: Business update and outlook
Business update and outlook Bogi Nils Bogason, CEO 11
Slide 12: Firm focus on increasing efficiency in 2024 after completion of the post-pandemic rebuild
Firm focus on increasing efficiency in 2024 after completion of the post-pandemic rebuild Icelandair primary focus areas Rebuild, 2021-2023 Optimization, 2024- Ramping up the operation again Increasing efficiency and lowering cost Continued development of Revamping the commercial engine commercial i
Slide 13: Icelandair is working systematically on increasing efficiency
Icelandair is working systematically on increasing efficiency Simplifying the organization resulting in fewer management positions and lowering cost Growing capacity 10% between years on the same overhead, thus demonstrating our scalability Over the past months, Icelandair Executing a turnaround pro
Slide 14: Icelandair will continue the same path
Icelandair will Reducing seasonality in the business through increased leasing of route network continue the same aircraft in the low season path Lowering sales and distribution costs as a share of revenues through various means Various cost-focused initiatives currently in Reducing IRROPS costs thr
Slide 15: At the same time, Icelandair aims to further develop its commercial infrastructure
At the same time, Icelandair aims to Continuing to develop the route network, both with new destinations and increased connections through additional frequencies and bank structure development further develop its strong commercial Further strengthening Icelandair’s position in the Arctic, such as wi
Slide 16: Icelandair continues to strengthen its partnership network
Icelandair continues to strengthen its partnership network and has recently entered into agreements with Emirates and Turkish Airlines • Airline partnerships are an important part of Icelandair’s commercial infrastructure and drive ~10% of our passenger revenue • The partnerships are enabled by effe
Slide 17: Moderate growth of ~10% in the route network planned for 2024
Moderate growth of ~10% in the route network planned for 2024 57 destinations N-America, Europe, Greenland and Domestic 3x daily to seven destinations 2x daily to 15 destinations New destinations with daily flights Rome, Raleigh, Milan and Bergen Increased morning flights to the US 5x per week to JF
Slide 18: Icelandair expects to return an EBIT-margin of 2-4% in 2024
Icelandair expects to return an EBIT-margin of 2-4% in 2024 Booking outlook for Q2 and Q3 mostly in line with last year although mix is shifting • Booking inflow in the TO market has been slower than last year due to continued volcanic activity on top of inflation and increased competition from othe
Slide 19: Icelandair is firmly on the right track. The future is bright
Icelandair is firmly on the right track The future is bright 19
Slide 20: Q&A
Q&A 20
Slide 21: 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