Icelandair Group Hf · OMXICE:ICEAIR
Icelandair Group Hf — Q3 2023 Earnings Presentation
20 slides from Icelandair Group Hf's earnings presentation, Oct 20, 2023
Slide 1: Q3 2023 results
Q3 2023 results 20 October 2023 Bogi Nils Bogason, President and CEO Ívar S. Kristinsson, CFO 1
Slide 2: Record revenue in third quarter driving 46% higher profit year-on-year
Record revenue in third quarter driving 46% higher profit year-on-year Record revenue EBIT improving by Profit up Robust demand on Liquid funds of USD 560 million USD 19 million by 46% the market to Iceland increasing y-o-y Total revenue USD million EBIT USD million Profit US cents Passengers To mar
Slide 3: Icelandair received two international customer awards this fall
Icelandair received two international customer awards this fall 3
Slide 4: Financials
Financials Ívar S. Kristinsson, CFO 4
Slide 5: 16% increase in the number of passengers on the To market
16% increase in the number of passengers on the To market driven by robust demand from N-America Traffic figures - changes year-on-year in Q3 In percentage Route Cargo & network Leasing 52% 15% 16% 11% 7% 8 ppt No 2% 1% 1% change -1% -3 ASK growth RPK growth Load Factor Passengers Passengers Passeng
Slide 6: Strong revenue generation in the passenger network driving improved results
Strong revenue generation in the passenger network driving improved results Income statement EBIT USD million USD million • Route network driving the improvement with strong revenue performance, including USD million Q3 2023 Q3 2022 Change record unit revenue Passenger revenue 508.0 433.4 74.6 +19.3
Slide 7: Robust demand particularly from N-America
Robust demand particularly from N-America 56% of passenger revenue originating from United States and Canada Chg. in no of passengers Passenger mix Load factor Passenger revenue Year-on-year Q3 Year-on-year Q3 Q3 23 in % Point of sales Q3 23 within to from via +7% 13% 87% 85% 1.530 82% 1.430 5% N-Am
Slide 8: Fuel cost down 11% year-on-year due lower fuel prices
Fuel cost down 11% year-on-year due lower fuel prices and more flights on fuel-efficient MAX aircraft Fuel cost main changes Hedge contracts and ratios Fuel price USD million Overview ton (Hedge %, Strike Price $/mt) USD per metric ton -11% 23.4 29,000 2022 2023 26,500 1.600 -6.9 20,500 1.400 40% 1.
Slide 9: Record third quarter unit revenue driven by yield improvements
Record third quarter unit RASK1 CASK2 revenue driven by yield US cents US cents improvements in all markets and cabins 1% -2% Passenger related RASK 9.2 9.3 7.4 7.3 up by 3%, with Other RASK 0.3 0.2 3% September particularly 2.1 Fuel CASK strong with 9% 2.8 improvement CASK decreasing by 2% Pax rela
Slide 10: Strong liquidity of USD 424 million
Strong liquidity of USD 424 million Total liquidity USD 106 million higher than at the beginning of the year Total liquidity Cash and marketable securities Breakdown in USD million Chg. in 2023 in USD million +105 104 424 52 241 13 372 18 318 85 52 266 42 372 Undrawn revolving facilities 287 266 Mar
Slide 11: Shareholder's equity USD 337 million and equity ratio 21%
Shareholder’s equity USD 337 million and equity ratio 21% Assets Equity and liabilities USD million 30 Sept 2023 30 Sept 2022 Change Operating assets 539.2 465.3 73.9 Right-of-use assets 363.6 329.3 34.3 Intangible assets and goodwill 55.3 55.3 0.0 Other non-current assets 85.9 88.5 -2.6 Total non-c
Slide 12: Outlook
Outlook Bogi Nils Bogason, President & CEO 12
Slide 13: 2023 Outlook
2023 Outlook • Outlook in the route network is good, with the current booking status stronger than at the same time last year • Continued strong performance of the Leasing operation • Cargo operation will return losses in 2023, but various actions taken to restore profitability • The guidance below
Slide 14: Moderate growth of ~10% in the route network in 2024
Moderate growth of ~10% in the route network in 2024 50+ destinations N-America, and Europe New destinations under review Will be announced soon Majority of the growth into North America Very strong demand in that market Three connecting banks More frequency, better products and increased partner co
Slide 15: From hiatus to record capacity in just over two years
From hiatus to record capacity in just over two years Trips per week Destinations Aircraft in operation Full-time employees 390 45 35 4,100 1,500 4 4 10 Q1 21 Q3 23 Q1 21 Q3 23 Q1 21 Q3 23 Q1 21 Q3 23 15
Slide 16: Focus on restoring profitability in the cargo operation
Focus on restoring profitability in the cargo operation Average EBIT ’13-’22 of USD 7m excludes ‘20- ’21 as they were “unusually good” years as Belly space capacity decreased significantly EBIT Icelandair Cargo 2013-2023 in Covid USD million 18.5 18.1 • The cargo operation has been very challenging
Slide 17: Strong performance of Loftleidir, the Leasing operation
Strong performance of Loftleidir, the Leasing operation, and profitable organic growth expected in 2024 The leasing operation has been successful in 2023, and profit is expected to increase year-on-year. Contracts have recently been signed with the largest leasing customer for four aircraft, extendi
Slide 18: The passenger route network and leasing operation generating strong results
The passenger route network and leasing 8% operation generating strong results and outlook strong for next 5-6% year By returning cargo to 3.3-4.3% normal operations the company will be on track to reach its goal 1.5% of long-term EBIT margin of 8% Actuals 2022 Guidance 2023 Guidance 2023 Long term
Slide 19: We bring the spirit of Iceland to the world
We bring the spirit of Iceland to the world 19
Slide 20: 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