Shift of 737 Max costs cuts Icelandair full-year loss forecast

Icelandair Group has slashed its forecast full-year losses, partly owing to its extending the suspension of Boeing 737 Max services. The company has removed 737 Max operations from its schedule for January and February 2020. This means that the costs of reintroducing the aircraft to its timetable will not be incurred in the current financial year. Icelandair Group says it has cut its predicted EBIT loss to $35-55m from the previous figure of $70-90 million. This includes the financial impact arising from the grounding of its 737 Max fleet, which it has trimmed to $110-120m for this year. The airline has six of the re-engined type, with several more on order. Icelandair Group says its prospects for this year are "more favourable" than they were during its previous forecast. It states that its Q3 results indicate EBIT and net profit levels "similar" to those of the same period last year, despite the 737 Max suspension. Icelandair Group is also expecting "improved performance" in Q4, partly resulting from the shift of 737 Max return-to-service costs into 2020. "The actions taken to mitigate the impact of the Max suspension are starting to materialise," it adds. But it also says that it is benefiting from "optimisation" of its route network and improved revenue management.<br/>