Icelandair counts costs of 737 Max grounding
Icelandair Group estimates that the Boeing 737 Max grounding has had a net negative effect of $100m on the company’s EBIT to date. Describing 2019 as a “challenging year”, CE Bogi Nils Bogason said that the grounding of the 737 Max since March had “an unprecedented negative impact on Icelandair’s operations, resulting in lost revenue, increased expenses and restricted utilisation of the company’s fleet and crew”. Management’s key focus has been on “minimising the impact” on the business, the airline said. Prior to the grounding, Icelandair had planned for its 737 Max jets to provide 27% of passenger capacity in 2019. Icelandair has five 737 Max 8s and one Max 9 in storage, and orders for another 10 aircraft. Instead of having a planned fleet of 36 aircraft – including nine 737 Max jets – at its disposal, the airline operated 33 aircraft during last year’s peak holiday season.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-02-10/unaligned/icelandair-counts-costs-of-737-max-grounding
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Icelandair counts costs of 737 Max grounding
Icelandair Group estimates that the Boeing 737 Max grounding has had a net negative effect of $100m on the company’s EBIT to date. Describing 2019 as a “challenging year”, CE Bogi Nils Bogason said that the grounding of the 737 Max since March had “an unprecedented negative impact on Icelandair’s operations, resulting in lost revenue, increased expenses and restricted utilisation of the company’s fleet and crew”. Management’s key focus has been on “minimising the impact” on the business, the airline said. Prior to the grounding, Icelandair had planned for its 737 Max jets to provide 27% of passenger capacity in 2019. Icelandair has five 737 Max 8s and one Max 9 in storage, and orders for another 10 aircraft. Instead of having a planned fleet of 36 aircraft – including nine 737 Max jets – at its disposal, the airline operated 33 aircraft during last year’s peak holiday season.<br/>
