This article first appeared on GuruFocus .
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Revenue:$496 million, up 7% year-on-year.
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Passenger Revenue:$421 million, up 7% despite slightly lower capacity.
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Load Factor:84%, a record for the quarter, up 1.9 percentage points.
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EBIT:Negative $30 million, impacted by higher fuel costs.
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Fuel Cost Increase:$41 million, with a potential rise of $73 million without hedging.
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Liquidity:$604 million at the end of the quarter.
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Net Cash from Operating Activities:Positive $42 million.
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Operating Income:Increased 7% to just under $500 million.
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Salary Expenses:Up 7% year-on-year.
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Equity Ratio:10.5% at the end of the quarter.
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Total Assets:$2.2 billion, up by $330 million since the beginning of the year.
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RASK Increase:9%, driven by higher load factor and yields.
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CASK ex-fuel Increase:Just over 4% on a fixed currency basis.
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Net Loss Impact from FX:$2.6 million currency loss compared to a gain last year.
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Release Date: July 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Icelandair Group hf ( OISE:ICEAIR ) achieved record revenue of $496 million, a 7% increase year-over-year.
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The company maintained a strong load factor of 84%, indicating efficient capacity utilization.
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Passenger revenue reached a record $421 million, despite slightly lower capacity, showcasing effective pricing and market strategies.
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Liquidity remained robust at $604 million, providing a strong financial position to navigate market volatility.
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The ONE transformation program delivered a $29 million impact in the quarter, contributing to operational efficiency and cost reduction.
Negative Points
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Fuel costs increased significantly by $41 million, impacting overall profitability.
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EBIT was negative at $30 million, primarily due to elevated fuel prices.
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The company faced a currency loss of $2.6 million, contrasting with a gain in the previous year.
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Salary expenses rose by 7% due to wage increases and unfavorable FX developments.
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The unrest in the Middle East negatively impacted performance across all business segments.
Q & A Highlights
Q: What jet fuel price do you expect in your assumptions for the third quarter? A: The current level is around USD1,300 per tonne, and the guidance is holding that level quite well. - Bogi Bogason, CEO
Q: When can we expect news regarding the Play Malta acquisition? A: We expect to have more news in the next few weeks as due diligence is progressing well and is in its final stages. - Bogi Bogason, CEO
Q: Can you frame the ASK growth you're planning for Q4 and how you think about defending load factor versus yield? A: Our planned growth for Q4 is about 2%. Despite geopolitical uncertainties, we are optimistic that load factor and yields will be at an acceptable level. - Bogi Bogason, CEO
Q: Should we expect any one-off costs or impairments from the accelerated 757 exit? A: We do not foresee any impairment related to the 757 exit. Complexity costs will gradually fade out, with a full impact expected by mid-next year. - Ivar Kristinsson, CFO
Q: Why lease four A320neos rather than shrink the fleet with the 757 retirement? A: The A320neo addition is part of the replacement plan for the 757s, and they share the same engine platform as our A321LRs, simplifying the fleet. - Ivar Kristinsson, CFO
Q: How does the ONE transformation project reconcile with the 7% increase in ex-fuel CASK? A: The underlying cost increase is well below inflation due to the transformation program, which is helping to control costs despite external pressures. - Ivar Kristinsson, CFO
Q: How much of the liquidity is genuinely surplus given the financial liabilities? A: We are well above our liquidity thresholds and feel comfortable with the current levels, which are above our policy requirements. - Ivar Kristinsson, CFO
Q: What network changes are behind the 5% capacity reduction in Q3 while expecting record unit revenues? A: We have decreased capacity to North America, focusing more on markets to and from Iceland, Scandinavia, and Europe. - Bogi Bogason, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
