Q3 2024 Icelandair Group hf Earnings Call Transcript
Key Points
- Icelandair Group hf (OISE:ICEAIR) achieved a record on-time performance, leading to lower operational costs and improved customer satisfaction.
- The company successfully optimized costs, resulting in lower unit costs despite a high inflation environment.
- Icelandair Group hf (OISE:ICEAIR) expanded its global partnership network, including a significant partnership with Southwest Airlines, enhancing its market reach.
- The company is seeing a recovery in the market to Iceland, with stronger booking status compared to the previous year.
- Icelandair Group hf (OISE:ICEAIR) is implementing a fleet renewal strategy with the introduction of Airbus 321LR, expected to improve operational efficiency and open new market opportunities.
- The company reported lower profitability with EBIT of $83 million compared to $112 million last year, due to softer demand and increased capacity in the transatlantic market.
- Passenger revenue decreased by 2% year-on-year, amounting to $497 million.
- Cargo revenue declined by $4 million compared to last year, reflecting fewer dedicated cargo flights.
- The company experienced a 9% decrease in passengers traveling to Iceland, although it managed to increase via passengers by 31%.
- Net profit for the quarter was $69 million, which is $15 million lower than the previous year.
Good morning, and welcome to the presentation of Icelandair's Q3 results. My name is Bogi Nils Bogason. And here with me is Ivar Kristinsson, our CFO. As usual, we will go through a presentation. And following that, we will have a Q&A session, and please send these questions to the e-mail address, [email protected].
But before Ivar takes us through the financials in a little bit of details, I would like to mention some of the key points of the information we published yesterday afternoon. On the operational side, our team performed exceptionally well with a record on-time performance month after month, which results in a lower interops cost and also improved customer satisfaction.
The focus we have had on cost optimization is depicted in lower unit cost between years despite the high inflation environment. However, as seen in the second quarter, unit revenues were lower than last year because of softer demand on the market to Iceland. But despite the softer demand, we managed to
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