Icelandair Group claims early results from transformation initiative

Icelandair Group is expecting its transformation efforts to generate significant improvements in profitability in the fourth quarter as well as the 2025 full year. The company made the forecast as it unveiled a third-quarter net profit of $69m. Icelandair Group embarked on a transformation programme in the first half, and CE Bogi Nils Bogason says results have “already started to materialise”. It is aiming for a $70m benefit from the initiative through cost-reduction projects and enhancement of revenue generation, including airline partnerships – several tie-ups have recently been disclosed with such carriers as Southwest Airlines, Emirates and TAP. Icelandair Group has shifted its focus to the transatlantic sector – although lower yields have had an impact on its results – and the ‘to Iceland’ market is “starting to regain its strength”, says Bogason. Rival carrier Play has opted to back away from transatlantic operations, owing to intense competition, instead favouring point-to-point services. Icelandair Group’s cargo operation, which had been suffering losses, is showing “continued improvement” and the company’s leasing business turned in “strong” results, Bogason adds. The company has a long-term target of an 8% margin for EBIT.<br/>