Iceland Reports Record Results

Iceland has published its third-quarter results indicating record revenue, among many other fantastic effects.

Breaking Down The Results

Icelandair says it recorded record revenue of USD 560 million for the third quarter, up from USD 487 million in the third quarter of 2022.

Ultimately, thus, net profits stood at USD 84.5 million. This is the highest quarterly earnings ever recorded by the carrier.

The company says that of the 560 million, 508 million was from passenger revenue, with 522 million representing other forms of revenue.

Fantastic Demand From North America

Icelandair attributes the fantastic performance thanks to robust demand coming from North America.

The airline says 56% of passenger revenue originated from the United States and Canada. North America saw a load factor of 87%, with 82% coming from Europe.

Breaking down the passenger revenue further highlights how the airline saw 56% of its revenue coming from North America, 27% from Europe and 14% from Iceland. The remaining 3% comes from ‘Other’ as described by the company.

The Importance Of The 737 MAX

Icelandair says that thanks to the Boeing 737 MAX, fuel costs have been seen to reach 11% lower year-on-year.

The drop is directly attributed to the arrival of more 737 MAXs and their highly efficient nature.

Currently, Icelandair operates with 44 in-service aircraft. The airline already has 14 Boeing 737-8s and 4 Boeing 737-9s powering its narrowbody operations.

The future acquisition of the Airbus A321neo family will only strengthen their fuel-efficient operations and bring down costs, replacing the Boeing 757s.

An Icelandair Boeing 737-8 – Photo: simon butler

Looking Ahead Into 2024

Icelandair has identified 2024 as another critical year for growth as it looks to increase capacity by 10%.

North America and Europe are targeted as key regions for growth. Per the Chief Executive, these expansion plans are slated to come shortly.

While its freight service has lagged, its passenger operations have consistently improved. The company is thankful for this and wants to leverage the success it has seen for the long term.