Icelandair Faces Cargo Challenges

Icelandair has reported its first quarter results for 2023. While the airline saw improvements in some areas, its notable point was losses in its cargo division.

The Icelandic carrier noted continued demand during the first quarter, indicating the remainder of the year will be strong.

Capacity for the group’s network saw a 38% rise. Meanwhile, they noted that weather disruptions caused cancellations of 5%. Additionally, they carried 664,000 passengers, up 57% over 2022’s first quarter. A load factor of 78% was also reached.

It acquired two 737 MAX aircraft for the first quarter and added a 767 freighter for its cargo operations. However, the latter continues to lag, providing a challenging operating environment for the wider group.

The airline reported revenues for its cargo division had dropped over 2022. Icealdnair cited conditions in the market as a reason for the poorer-than-expected results. In addition, Icelandair said that for the remainder of 2023, it would focus on turning the freight division into profits.

Per Cirium data, the group has 2 Boeing 767-300ERFs in service under its Icelandair Cargo division.