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IceAir778
Topic Author
Posts: 106
Joined: Thu Feb 14, 2013 4:55 pm

Icelandair Q3 2016 profit

Fri Oct 28, 2016 3:40 pm

Today Icelandair Group (Icelandair' parent company) announced a financial results for the 3rd quarter of 2016. The quarter is the most important quarter for the company. All important numbers are green and the company is doing very well:

- EBITDA USD 161.8 million compared to 155.6 million Q3 2015,
- 19% increase in pax numbers on international flights,
- Good passenger load factor (85.5%),
- Total of 1,5 million passenger in Q3 (Record!).

There were some difficulties this summer at their hub in KEF due to infrastructure issue. But it is getting better and hopefully be much better in the future when the airport authorities will build a new terminal (ref. http://betterairport.kefairport.is/masterplan/ [sorry Icelandic]).

Next year will be very interesting; adding new destinations which, I think, will be very successful as well as increasing frequency and seats to most of their destinations in Europe and in North America by adding two new B767-300s.

Coming years are very interesting. They will adding new aircraft type (Boeing 737 MAX) to their fleet, which will join the fleet in February/March 2018. Since there is always harder to get an old Boeing 757-200s or even -300s - and only rumored about new 757 - they are facing a tough times.
For example:
-What they will do for future expansion in the Mid-West USA.
-New bank?
-Increase in destinations and frequency in their 2nd bank (needs more B757s) etc ...


Announcement:
https://newsclient.omxgroup.com/cdsPubl ... 09&lang=en
Presentation from the CEO and CFO:
https://newsclient.omxgroup.com/cdsPubl ... 20&lang=en
 
a380787
Posts: 4573
Joined: Tue Jul 09, 2013 4:38 pm

Re: Icelandair Q3 2016 profit

Fri Oct 28, 2016 3:44 pm

Any notes from the C-suites execs regarding how they plan on keeping WOW Air's expansion at bay ?
 
IceAir778
Topic Author
Posts: 106
Joined: Thu Feb 14, 2013 4:55 pm

Re: Icelandair Q3 2016 profit

Fri Oct 28, 2016 3:51 pm

a380787 wrote:
Any notes from the C-suites execs regarding how they plan on keeping WOW Air's expansion at bay ?


I havent see anything regarding that. I think they are more focusing on their business and expansion rather focusing on WOWair.
 
Softaero
Posts: 139
Joined: Sun Jun 19, 2016 6:47 am

Re: Icelandair Q3 2016 profit

Fri Oct 28, 2016 3:56 pm

When the 757 gets retired from Icelandair's fleet, the 767 can replace them on routes where the 737 MAX has insufficient range. They may also consider buying the A321neo.
According to all known laws of aviation, there is no way a bee should be able to fly
 
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readytotaxi
Posts: 7406
Joined: Mon Dec 11, 2006 2:09 am

Re: Icelandair Q3 2016 profit

Fri Oct 28, 2016 4:22 pm

When they get those 767's I hope they do something with their Saga Class, so dated.
you don't get a second chance to make a first impression!
Growing older, but not up.
 
MIflyer12
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Joined: Mon Feb 18, 2013 11:58 pm

Re: Icelandair Q3 2016 profit

Fri Oct 28, 2016 5:37 pm

If you could run an airline without costs of interest, depreciation, or amortization (a tough trick in a business with high-cost assets), EBITDA as a headline measure might make sense. But you can't. The more comprehensive Profit for the Period is flat year over year, as it is 9 months 2016 vs. 9 months 2015. Sorry, but I don't see how carrying 10% more passengers and making no more income is a sunny result.
 
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hvusslax
Posts: 418
Joined: Sat Aug 15, 2015 7:35 pm

Re: Icelandair Q3 2016 profit

Fri Oct 28, 2016 9:39 pm

a380787 wrote:
Any notes from the C-suites execs regarding how they plan on keeping WOW Air's expansion at bay ?


They have not really been concerned with WOW's expansion so far. There has been plenty of demand to go around for both and there is less direct competition between FI and WW than one would think. FI is however feeling the pressure of lower fares in general which is a worldwide trend. WW is mostly a thorn in FI's side because it is becoming increasingly difficult for them coexist at crowded KEF.
 
Natflyer
Posts: 641
Joined: Fri Oct 11, 2013 9:29 pm

Re: Icelandair Q3 2016 profit

Fri Oct 28, 2016 10:03 pm

MIflyer12 wrote:
If you could run an airline without costs of interest, depreciation, or amortization (a tough trick in a business with high-cost assets), EBITDA as a headline measure might make sense. But you can't. The more comprehensive Profit for the Period is flat year over year, as it is 9 months 2016 vs. 9 months 2015. Sorry, but I don't see how carrying 10% more passengers and making no more income is a sunny result.


Huh, what did you read? Pax numbers up 19%, income up 13%. Huge cost of expansion and (re)start of 767 ops, hence expenses up 18%.

https://newsclient.omxgroup.com/cdsPubl ... 20&lang=en

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