Icelandair focuses on cash preservation as pandemic resurgence bites

Icelandair transported just 14,000 passengers during December 2020, but even this figure was more than the October and November totals combined. Q4 revenues for Icelandair Group amounted to just $60 million to 31 December, down by more than 80%, while pre-tax losses for the period reached $97m. It attributes the heavy impact to the resurgence of the pandemic, and consequential travel restrictions. Icelandair Group says its liquidity over the last three months was “heavily influenced” by large volumes of refund requests which resulted in a net cash outflow of $30m. It says it has “minimised to the extent possible” its cash burn during daily operations – a total of $37.4m – while retaining its ability to restore dormant services quickly as signs of recovery emerge. “Maintaining a strong liquidity position is a vital component in an effective ramp-up process,” it says. The company has reinforced its liquidity by taking steps to “streamline” its long-term cost base and operations, agreeing to sell three Boeing 757-200s. It has also reached a sale-and-leaseback arrangement of its office building near Reykjavik downtown airport.<br/>