Icelandair Group Hf · OMXICE:ICEAIR
Icelandair Group Hf — Q2 2025 Earnings Presentation
24 slides from Icelandair Group Hf's earnings presentation, Jul 18, 2025
Slide 1: We bring the spirit of Iceland to the world
We bring the spirit of Iceland to the world Q2 2025 Financial Results l 18 July 2025 Bogi Nils Bogason, President and CEO Ívar S. Kristinsson, CFO 1
Slide 2: Q2 2025 highlights: record passenger revenue, cash from operations, net profit
Record passenger revenue Strong cash from operations Net profit USD 393m USD 118m USD 13m up by 11% from up by 7% from improving by USD last year last year 12m year-on-year Negative currency effect on EBIT Yield decreasing by Total EBIT USD 13m 2% USD 775k currency gain of USD 3m due to soft demand
Slide 3: Financial results
Financial results Ívar S. Kristinsson, CFO 3
Slide 4: We carried 1.4 million passengers to 56 destinations in Q2 2025
We carried 1.4 million passengers to 56 destinations in Q2 2025 The second connection bank started early April, compared to mid-May last year, as part of Icelandair’s strategy to grow outside the peak season, balance seasonality, and better utilize the Company’s infrastructure year-round Traffic dat
Slide 5: Net profit stronger than last year, but EBIT negatively impacted by strong ISK
Net profit stronger than last year, but EBIT negatively impacted by the strengthening of the ISK and softer via demand due to geopolitical uncertainty Profit loss statement EBIT per segment Commentary USD million USD million Q224 • Net negative impact of currency fluctuation USD million Q2 2025 Q2 2
Slide 6: Strong operating results in areas within our control
Strong operating results in areas within our control Main changes in EBIT In USD million Q225 vs Q224 +10.0 5.0 7.6 13.3 -5.7 12.0 1.3 3.3 0.8 -12.6 -7.8 13.2 -6.3 -9.4 EBIT Production Unit revenue Contracted Inflation Fuel Labor Other initiatives Leasing & Cargo Depr. lease EBIT Q225 FX impact EBIT
Slide 7: Strengthening of the Icelandic krona negatively impacted EBIT but partly offset
The strengthening of the Icelandic krona negatively impacted EBIT but partly offset through positive impact on finance income Currency fluctuation – effect on EBIT and net earnings USD million Q225 vs. Q224 7.0 2.6 • The negative currency effect on EBIT due to strengthening of the ISK is estimated a
Slide 8: Number of FTEs at the same level as last year despite 13% production increase
Number of FTEs at the same level as last year despite 13% production increase Overview of main changes in salary and salary-related costs Average number of FTEs USD million Change year-on-year +16% 6 12 2 124 (0%) 7 14 3,708 3,720 -12 107 Q224 Production Contractual Labor Currency Other Q225 Q224 Q2
Slide 9: Unit revenue in the route network decreased by 2% driven by lower yields
Unit revenue in the route network decreased by 2% driven by lower yields in the via market Main changes in unit revenue In US Cents Q224 vs. Q225 • Load factor 82.1% improving by 1.1 ppt despite 13% capacity -2% increase 0.05 0.04 • Total yield decrease in all markets 1.7% vs. 7% on the 7.93 Transat
Slide 10: Cargo and Leasing operations performed well
Cargo and Leasing operations performed well Revenue1 USD million EBIT USD million Sold BH2 Comments +37% +2.6 +43% • Leasing continues to deliver strong 5.9 6,865 results with an EBIT margin of over 18% 30.2 22.1 4,798 • EBIT USD 5.9 million up by USD 2.6 3.2 million • Revenue growth 37% with 43% mo
Slide 11: Strong cash from operation and record total liquidity of USD 572 million
Strong cash from operation and record total liquidity position of USD 572 million at the end of the second quarter Total liquidity1 Liquidity2 development Breakdown in USD million In USD million +225 572 +63 92 19 465 8 52 163 28 347 480 122 118 92 +480 +413 105 317 Undrawn revolving facilities 291
Slide 12: Shareholders equity totaling USD 283 million and equity ratio of 14%
Shareholders equity totaling USD 283 millionand an equity ratio of 14% Assets Equity and liabilities USD million USD million USD Thousand 30 Jun 2025 31 Dec 2024 % chg. 30 Jun 2024 30 Jun 2025 31 Dec 2024 % chg. 30 Jun 2024 Operating assets 558 560 0% 568 Shareholders' equity 283 269 5% 233 Right-of
Slide 13: Business update
Business update Bogi Nils Bogason, President and CEO 13
Slide 14: Dynamic market developments
Dynamic market developments 1.4m passengers carried To Iceland We see favorable developments in the markets To and From Iceland, as a result of our strong focus on these markets. The market To Iceland is robust and growing despite the strong real exchange rate of the Icelandic Krona. To Iceland, 31%
Slide 15: Favorable prospects in the cargo and leasing segments
Favorable prospects in the cargo and leasing segments EBIT January-June USD million EBIT January-June USD million +4.8 +2.2 11.2 • EBIT margin of ~19% 2.9 • EBIT margin of ~7% • All main projects are • Building on the strong returning good results turnaround in 2024 the performance continues to • Th
Slide 16: Strong ISK is challenging for the competitiveness of Icelandic export industries
Strong ISK is challenging for the competitiveness of Icelandic export industries Real effective FX rate of ISK Labor costs per hour worked • From Q4 2021 to Q2 2025 the Based on consumer prices, index1 EUR, Q125 at 8 July FX rate real exchange rate (based on prices) appreciated by 16%, of which 5% i
Slide 17: Our network planning is adapted to market conditions
Our network TO/FROM focused growth Virtuous growth cycle • Grow network moderately • Grow network rapidly Weak ISK • Focus on TO/FROM markets planning is adapted • Add destinations labor cost • Add TO/FROM destinations • Increase frequency to core competitive • Increase frequency to core destination
Slide 18: Strategic network planning in line with market developments
Strategic network planning in line with market developments Market position today: Our actions: Modestgrowth Capacity growth in 2025 is focused on the shoulder seasons, Modest / no growth to balance seasonality and utilize infrastructure better • Low to negative capacity growth Strong ISK • Cut unpr
Slide 19: Transforming for the future
Transforming for the future Fleet Efficiency Commercial ONE renewal focus infrastructure transformation In 2019 we introduced the Increased efficiencies have We continue to build on Focus on driving efficiencies, cost-efficient Boeing MAX resulted in outstanding our strong commercial reducing costs,
Slide 20: Change in capacity to and from Iceland strengthens our leading hub position
Change in the capacity to and from Iceland strengthens our leading hub position Change in capacity to and from Iceland 2025 vs 2024 Q2-Q4 4% 7% 7% -3% -5% -5% -11% Icelandair Other carriers -4% Q225 Q325 Q425 20
Slide 21: Financial guidance: EBIT for the full year expected to be at break even
Financial guidance: EBIT for the full year expected to be at break even Q3 2025 Q4 2025 Assumptions FX impact • Bookings for the peak summer • Bookings into fall and winter • Average market price of jet • With USD/ISK at the same period are ahead of last year currently slow fuel USD 720 per m/t leve
Slide 22: Key takeaways
Key takeaways Net profit of Strong leading Transforming USD 13 million hub carrier position the future EBIT impacted by strong ISK and Changes in the capacity to and Icelandair is transforming for soft demand on the Transatlantic from Iceland are strengthening the the future with a clear focus on ma
Slide 23: Thank you
Thank you 23
Slide 24: 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