Icelandair firms expectations for improved profits in 2024

Icelandair expects its EBIT profit margin to increase to between 2-4% this year on revenues rising to $1.6b after firming its financial guidance for 2024. The carrier had previously stopped short of issuing guidance for the year ahead citing market uncertainty stemming from increased seismic activity in Iceland – media coverage of which it has been highly critical of and blamed for having a compounding impact on travel demand to the country. In disclosing a full-year profit for 2023 at the start of February, Icelandair said only that it expected to generate improved EBIT and net profit in 2024. ”Uncertainty in the operating environment has decreased with diminishing impact of inaccurate international media coverage of the volcanic activity in southwest Iceland on bookings and the conclusion of the collective bargaining agreements in the private sector in Iceland,” the company says in issuing updated guidance on 2 April. Icelandair says that, based on the first two months of 2024 and current bookings, it expects revenues to increase this year to $1.6b. The airline generated turnover of $1.52b in 2023. It expects an EBIT margin in the range of 2-4% this year – an improvement on 1.4% on 2023 – and for net profit to increase over last year. The outlook is based on the carrier lifting capacity 10%, as measured in available seat kilometers (ASKs) – including capacity more than a fifth higher in Q1 compared to 2023.<br/>