Icelandair Group cargo division edges back into operating profit

Icelandair Group has recorded an improvement in its cargo operation, with a return to operating profit in Q1. The company states that it is “on track” to deliver a full-year operating profit in the division after implementing a number of efficiency measures. It reduced freight capacity by 9% as part of this efficiency effort. The company says capacity was consequently “better aligned” with demand, with flown freighter block hours 35% down on last year. One of the carrier’s freighters has been placed on long-term lease. As a result of the measures, Icelandair Cargo’s revenues of $20.7m for the first three months were down 13%. The carrier's CE says the positive operating figure in February and March demonstrates a “great turnaround” compared with last year. The cargo division narrowly edged into operating profit for the three months, contrasting with a $3.8m loss last year.<br/>