Icelandair Group Hf · OMXICE:ICEAIR
Icelandair Group Hf — Q3 2025 Earnings Presentation
22 slides from Icelandair Group Hf's earnings presentation, Oct 23, 2025
Slide 1: We bring the spirit of Iceland to the world
We bring the spirit of Iceland to the world Q3 2025 Financial Results l 23 October 2025 Bogi Nils Bogason, President and CEO Ívar S. Kristinsson, CFO 1
Slide 2: Q3 2025 highlights
Record passenger revenue RASK increasing by CASK increasing by USD 522m 4% 6% up by 5% from driven by higher proportion of with negative currency development last year passengers on the to and from markets the largest contributor Negative currency effect on EBIT EBIT Net profit USD 10m USD 74m USD 5
Slide 3: Financial results
Financial results Ívar S. Kristinsson, CFO 3
Slide 4: To and from markets show strong year-over-year growth
To and from markets show strong year-over-year growth following a shift in focus due to weak transatlantic market Highlights the flexibility of the route network to respond quickly to changing market conditions Traffic data passenger network Change vs Q324 17% Icelandair´s 11% on-time performance of
Slide 5: Revenue increased year-over-year in line with projections but cost headwinds weighed on the bottom line
Revenue increased year-over-year in line with projections but cost headwinds weighed on the bottom line Profit loss statement EBIT per segment Commentary USD million USD million Q324 • Passenger revenue increased across all USD million Q3 2025 Q3 2024 Change Passenger revenue 522.1 496.5 5% Q325 mar
Slide 6: Fuel expenses decreased by 5% year-on-year
Fuel expenses decreased by 5% year-on-year Supported by fleet renewal, operational efficiencies and a 10% drop in effective fuel prices Main changes in fuel cost Q325 vs Q324 in USD million -5% • Positive fuel cost development, 2.3 supported by fleet renewal, operational 125.0 efficiencies, and 10%
Slide 7: EBIT adversely impacted by inflation and unfavorable currency developments
EBIT adversely impacted by inflation and unfavorable currency developments, partially offset by positive impact from transformation initiatives Main changes in EBIT Q325 vs Q324 in USD million +1.0 -9.1 12.4 -7.5 1.8 7.0 84.5 83.5 -8.1 12.5 -4.5 74.4 -10.1 -8.9 -3.7 EBIT Q324 Production Unit revenue
Slide 8: Unit revenue in the route network increased by 4% year-on-year
Unit revenue in the route network increased by 4% year-on-year Driven by strategic network changes and strong demand in core markets - supporting profitability despite cost pressures • Load factor remained strong at 85.9%, Main changes in unit revenue consistent with last year’s performance Q325 vs.
Slide 9: Unit cost in the route network increased by 6% year-on-year
Unit cost in the route network increased by 6% year-on-year Driven by currency movements, with additional impact from fuel savings and inflationary pressures Main changes in unit cost Depreciation of the USD, especially the ISK the Q325 vs. Q324 in US cents main driver of increased unit cost Excludi
Slide 10: Cargo and Leasing operations performed well
Cargo and Leasing operations performed well Revenue1 USD million EBIT USD million Sold BH2 Comments -0.3 +23% • Leasing continues to deliver strong -5% 5.0 7,127 results with an EBIT margin of 21% 4.7 23.7 22.5 5,771 • EBIT USD 4.7 million, slightly less than last year Q324 Q325 Q324 Q325 Q324 Q325
Slide 11: Strong total liquidity of USD 503 million at the end of September
Strong total liquidity of USD 503 million at the end of September Total liquidity1 Liquidity2 development Breakdown in USD million In USD million +107 +156 -69 503 480 92 26 396 347 92 16 175 92 1 133 29 105 +411 411 +304 Undrawn revolving facilities +255 236 Marketable securities 170 150 Cash and c
Slide 12: Shareholders equity totaling USD 339 million and an equity ratio of 18%
Shareholders equity totaling USD 339 million and an equity ratio of 18% Assets Equity and liabilities USD million USD million 30 Sep 31 Dec 30 Sep 30 Sep 31 Dec 30 Sep 2025 2024 % chg. 2024 2025 2024 % chg. 2024 Shareholders' equity 339 269 26% 297 Operating assets 542 560 -3% 557 Loans and borrowin
Slide 13: Business update and outlook
Business update and outlook Bogi Nils Bogason, President and CEO 14
Slide 14: Rationalization of capacity to and from Iceland, strengthening Icelandair's leading hub position
Rationalization of capacity to and from Iceland, strengthening Icelandair's leading hub position Our capacity share is forecasted at 67% in our hub in September 2026 compared to 50% at the beginning of 2024 Year-on-year change in capacity to and from Iceland and Icelandair capacity share (in availab
Slide 15: The network focus in 2026 will be on the markets to and from Iceland
The network focus in 2026 will be on the markets to and from Iceland, while ensuring strong connectivity across the route network Current market situation: Our actions for 2026: Modest growth of 2% Capacity growth in 2026 is focused on the shoulder and low seasons. Modest growth to balance seasonali
Slide 16: Icelandair route network in 2026
Icelandair route network in 2026 Over 60 gateways N-America, Europe, Greenland, and Domestic Over 800 connection possibilities within the network and endless other through partnership airlines Three connecting banks More frequency, better products, and increased partner connectivity Two new destinat
Slide 17: Fleet renewal in the international passenger network
Av. age Av. age Fleet renewal in of fleet 20 years of fleet 9 years the international passenger network 36 37 -2 progressing well, 33 33 35 3 3 3 35 2 with ~90% of flights 4 4 28 31 3 9 5 in 2026 planned 4 26 12 12 on new-generation 4 12 aircraft, supported by 26 23 21 28 new generation improved uti
Slide 18: We are transforming for the future by driving efficiencies, reducing costs and unlocking new revenue
We are transforming for the future by driving efficiencies, reducing costs and unlocking new revenue opportunities Examples of initiatives: >500 USD 100m Ongoing efforts to improve efficiency Ideas scheduled Expected annual gain Focus on automation and expanding the shared service center in Tallinn.
Slide 19: Financial guidance: EBIT for the full year 2025 expected to be negative USD 10-20 million
Financial guidance: EBIT for the full year 2025 expected to be negative USD 10-20 million Headwinds - Tailwinds + Assumptions • Strong real exchange of the • Good outlook in Cargo and • Average market price of jet ISK Leasing operations fuel USD 700 per m/t in Q425 • Global geopolitical • ONE transf
Slide 20: Key takeaways
Key takeaways Net profit in Q325 Leading hub carrier Transforming of USD 58 million position strengthened the future Revenue increased year-over-year Changes in the capacity to and Icelandair is transforming for despite fare pressure in the from Iceland are strengthening the the future with a clear
Slide 21: Thank you
Thank you 22
Slide 22: 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