Exactly which “asset stripping” has been going on at Icelandair?
This goes to show how uninformed and opinionated you are.
No it just shows how illiterate fan boys get.
Icelandair has a profit of around $2MM in the first 9 months, compared with WOW’s $33MM loss. It’s not a big profit, and won’t lead to a profit on a yearly basis, but it’s considerably more profitable than WOW.
Yes, but cash is down significantly (USD 45m) and loans/borrowings both current and non current are up significantly (USD 115m). Operating costs are up by USD50m on a USD380m base. Those aren't healthy finances no matter what wizardry allows you to declare a nominal profit.
There is a solid equity at Icelandair. Cash reserves are down mainly because of investment activities. There is positive net cash flow from operating activities and enough cash on hand.
When accounting to IFRS you usually make a profit, a lot of the shenanigans that can be done in USGAAP are not possible in IFRS, so no need to talk about declared profits.
If you believe that WOW had better operating results than Icelandair, I recommend a pair of classes while reading financial reports.
By the way, the hotel chain has not been sold yet, the sales process has been started last month.
I know the sale process started last month, I'm familiar with the matter and all this nonsense that it's about refocusing the business is just that, nonsense.
The positive cash flow is because of the way summer is fully included but the low season is not fully. It will not be the case full year and cash in hand is significantly down with debt (both current and long term) significantly up, along with costs (largely but not exclusively for currency reasons). I agree cash in hand is OK for the moment and will get a boost when they sell the hotel assets off. I agree that gives them the tools needed to weather any short term storms.
But.... anyone who thinks that with the CEO gone, cash down, costs up, debt up, selling long held profitable assets, white collar jobs gone to Estonia, US3 on one side, easyjet/wizz on the other, plus a very disruptive home force and everything is just fine - well they'd be delusional, plain delusional.
My feeling is two KEF airlines isn't sustainable, which both FI and Wow's number back up. In the long run, and it is only relevant in the long run, Indigo's pockets are very much
deeper than FI's.