Interim Financial Statements of Icelandair Group hf. 30 June 2024
1
3
5
6
7
8
9
1. 9
2. 9
3. 9
4. 9
5. 9
6. 10
7. 12
8. 12
9. 12
10. 13
11. 13
12. 14
13. 14
14. 15
15. 15
16. 15
17. 15
Appendix:
16
17Definitions ...........................................................................................................................................................
Use of estimates and judgements ....................................................................................................
Changes in accounting policies ........................................................................................................
Loans and borrowings ......................................................................................................................
Operating segments .........................................................................................................................
Operating income .............................................................................................................................
Operating expenses .........................................................................................................................
Finance income and (finance cost) ..................................................................................................
Depreciation and amortization .........................................................................................................
Alternative performance measures (APM) .........................................................................................................
Lease liabilities .................................................................................................................................
Deferred income ...............................................................................................................................
Financial instruments and fair values ...............................................................................................
Group entities ...................................................................................................................................
Investment and financing without cash flow effect ...........................................................................
Capital commitments ........................................................................................................................
Functional and presentation currency ..............................................................................................
Contents
Consolidated Statement of Financial Position ....................................................................................................
Consolidated Statement of Changes in Equity ...................................................................................................
Reporting entity ................................................................................................................................
Basis of accounting ..........................................................................................................................
Notes ..................................................................................................................................................................
Consolidated Statement of Cash Flows .............................................................................................................
Endorsement and Statement by the Board of Directors and the CEO ...............................................................
Consolidated Income Statement of Comprehensive Income .............................................................................
Interim Financial Statements of Icelandair Group hf. 30 June 2024
2
Interim Financial Statements of Icelandair Group hf. 30 June 2024
3
Endorsement and Statement by the Board of Directors and the CEO
The Condensed Consolidated Interim Financial Statements of Icelandair Group hf. for the period from 1 January to 30 June
2024 have been prepared in accordance with International Financial Reporting Standards (IFRS) for Interim Financial
Statements (IAS 34). The Interim Financial Statements comprise the Consolidated Interim Financial Statements of Icelandair
Group hf. (the "Company") and its subsidiaries together referred to as the "Group". All amounts are stated in thousands of
USD.
According to the Consolidated Statement of Comprehensive Income, loss for the period from 1 January to 30 June 2024
amounted to USD 58.8 million. Total comprehensive loss for the period was USD 56.1 million. Equity on 30 June 2024
amounted to USD 232.7 million, according to the Consolidated Statement of Financial Position, and share capital amounted
to USD 311 million. Reference is made to the Consolidated Statement of Changes in Equity regarding information on changes
in equity.
Statement by the Board of Directors and the CEO
The Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2024 have been prepared in
accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Icelandic disclosure
requirements for Consolidated Financial Statements of listed companies. The Condensed Consolidated Interim Financial
Statements have neither been audited nor reviewed by the Company's independent auditors.
Positive results have been achieved on the cost side, which is reflected in the 2.4% reduction in unit cost in the second quarter
despite significant cost increases in some parts of the value chain. The temporary decline in the passenger market to Iceland
and the changes in the passenger mix affected passenger revenue and the financial results of the route network, in addition
to the stronger demand during Easter in March this year compared to April last year. There was a continued positive turnaround
in the Cargo operation and the Leasing operation performed well.
Icelandair transported 1.2 million passengers in the second quarter, 3% more than last year's second quarter. Strong
competition with other destinations and the impact of repeated volcanic eruptions in Reykjanes on global media coverage on
Iceland have temporarily softened demand for flights to Iceland. To compensate for this, Icelandair has utilized the flexibility of
its route network and placed greater emphasis on the transatlantic market, which has led to changes in the passenger mix.
The number of connecting passengers increased by 25% between years and accounted for 50% of the total number of
passengers compared to 41% last year. However, the number of passengers on the market to Iceland decreased by 15% and
accounted for 29% of the total number of passengers compared to 35% last year. The number of passengers in the market
from Iceland decreased by 9%, and the number of domestic passengers remained the same year-on-year. Flight operations
performed well during the quarter, with an on-time performance of 86%, up by a considerable 11 percentage points compared
to the second quarter last year.
Following a challenging year in the Cargo operations in 2023, various actions have restored the profitability of the segment.
Measures included leasing out one of two freighter aircraft, adjusting the cargo flight schedule to market conditions, and
organizational changes. The Leasing operation performed well and is gradually expanding. Five aircraft are in operation at the
Company's largest leasing customer, and a third aircraft has been added to the Company‘s VIP Private Jet services to meet
the high demand in that segment.
Icelandair employed an average of 3,708 full-time employees in Q2, down by 2% between years. The Company outsourced
its flight kitchen operation from 1 March 2024, which reduced 200 FTEs from March.
Equity amounted to USD 232.7 million, with an equity ratio of 13% at the end of June. The total liquidity position is strong, with
cash and marketable securities amounting to USD 465 million, of which USD 52 million are in the form of committed undrawn
revolving facilities.
The year 2023 marked a significant milestone for Icelandair as the Company completed its post-pandemic ramp-up and
returned to profitability, contributing to the recovery of the tourism industry and, thus, Iceland’s economy as a whole. Following
this rapid growth phase, Icelandair is now focusing on optimizing its operations by driving efficiencies and increasing its
competitiveness, as was reflected in lower CASK in the second quarter despite high inflation. Icelandair launched a
comprehensive transformation journey to support this aspiration in the first half of 2024, which is named ONE – collaborative
effort, one journey.
Endorsement and Statement by the Board of Directors and the CEO, contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
4
Statement by the Board of Directors and the CEO, contd.:
According to our best knowledge it is our opinion that the Condensed Consolidated Interim Financial Statements give a true
and fair view of the financial performance of the Group for the six month period ended 30 June 2024, its assets, liabilities and
consolidated financial position as at 30 June 2024 and its consolidated cash flows for the period then ended.
Further, in our opinion, the Condensed Consolidated Interim Financial Statements and the Endorsement of the Board of
Directors and the CEO give a fair view of the development and performance of the Group's operations and its position and
describes the principal risks and uncertainties faced by the Group.
The Board of Directors and the CEO have today discussed the Condensed Consolidated Interim Financial Statements of
Icelandair Group hf. for the period 1 January to 30 June 2024 and confirm them by means of their signatures.
Reykjavík, 17 July 2024.
Board of Directors:
Guðmundur Hafsteinsson, Chairman of the Board
Nina Jonsson
John F. Thomas
Matthew Evans
Svafa Grönfeldt
CEO:
Bogi Nils Bogason
Interim Financial Statements of Icelandair Group hf. 30 June 2024
5
Amounts are in USD thousands
Consolidated Income Statement and other Comprehensive Income
for the period from 1 January to 30 June 2024
Notes 2024 2023 2024 2023
Q2 Q2 YTD YTD
Operating income
7 353,183 352,728 552,045 523,268
16,885 22,020 37,581 45,711
20,654 19,456 39,982 38,539
7 18,661 19,976 38,736 39,917
409,383 414,180 668,344 647,435
Operating expenses
106,968 105,930 201,460 184,592
96,531 95,580 160,619 162,188
73,846 71,024 128,418 119,834
91,468 86,046 172,608 157,307
8 368,813 358,580 663,105 623,921
40,570 55,600 5,239 23,514
9 37,261)( 34,746)( 70,822)( 64,285)(
3,309 20,854 65,583)( 40,771)(
8,968 3,176
17,015 9,514
11,107)( 10,431)(
22,460)( 19,711)(
10 2,139)( 7,255)( 5,445)( 10,197)(
0 1,381 0 1,381
646)( 361 1,103)( 174)(
524 15,341 72,131)( 49,761)(
98 1,685)( 13,336 14,285
622 13,656 58,795)( 35,476)(
Other comprehensive (loss) income:
73
)
(
666 2,959
)
(
5,253
31 264 1,093
)
(
1,942
1,035
)
(
5,353 5,630
3,492
403
(
5,286
)
(
1,162
7,618)(
1,480)( 997 2,740 3,069
858)( 14,653 56,055)( 32,407)(
Profit (loss) attributable to:
531 13,477 59,037)( 35,799)(
91 179 242 323
622 13,656 58,795)( 35,476)(
Total comprehensive (loss) profit attributable to:
949)( 14,467 56,297)( 32,735)(
91 186 242 328
858)( 14,653 56,055)( 32,407)(
Earnings per share:
0.00 0.03 0.14
)
(
0.09
)
(
The notes on pages 9 to 15 are an integral part of these Interim Consolidated Financial Statements.
Passenger revenue .........................................................................
Leasing revenue ..............................................................................
Other operating revenue ..................................................................
Salaries and salary-related expenses ..............................................
Gain on sale of subsidiary ...............................................................
Cargo revenue .................................................................................
Aircraft fuel ......................................................................................
Depreciation and amortization .........................................................
Operating profit before depreciation
Basic and diluted earnings per share in US cent .............................
Owners of the Company ..................................................................
Non-controlling interest ....................................................................
Income tax .......................................................................................
Finance income ...............................................................................
Other aviation expenses ..................................................................
Finance cost ....................................................................................
Net finance cost...............................................................................
Profit (loss) before tax (EBT) .........................................................
Operating profit (loss) (EBIT) ........................................................
Share of (loss) gain of associates ....................................................
Other operating expenses ...............................................................
Owners of the Company ..................................................................
Profit (loss) profit for the period ...................................................
Total comprehensive (loss) profit for the period .........................
Net profit (loss) on hedge of investment, net of tax .........................
Total comprehensive (loss) profit for the period .........................
Non-controlling interest ....................................................................
and amortization (EBITDA) .........................................................
Profit (loss) for the period .............................................................
.
in fair value, net of tax ................................................................
Other comprehensive (loss) income for the period
....................
.
Currency translation differences ......................................................
Cash flow hedges - effective portion of changes
Cash flow hedges - reclassified to profit or loss ...............................
Interim Financial Statements of Icelandair Group hf. 30 June 2024
6
Amounts are in USD thousands
Consolidated Statement of Financial Position
as at 30 June 2024
Notes 30.06.2024 31.12.2023
Assets:
567,831 555,110
383,362
348,520
55,784
55,377
29,836
8,395
70,823 43,469
71,619 59,728
Non-current assets 1,179,255 1,070,599
24,399 23,841
2,772 791
180,023 161,923
122,013 71,008
291,161 199,514
Current assets 620,368 457,077
Total assets 1,799,623 1,527,676
Equity:
310,973
310,973
30,509
20,112
110,289 )( 44,015 )(
Equity attributable to equity holders of the Company 231,193 287,070
1,519 1,277
Total equity 232,712 288,347
Liabilities:
11
185,813 207,390
12
381,804 332,167
84,786 53,952
Non-current liabilities 652,403 593,509
11
41,018 44,940
12
62,409 54,083
0 6,598
290,498 222,414
13
520,583 317,785
0
Current liabilities 914,508 645,820
Total liabilities 1,566,911 1,239,329
Total equity and liabilities 1,799,623 1,527,676
The notes on pages 9 to 15 are an integral part of these Interim Consolidated Financial Statements.
Share capital ..........................................................................................................
Reserves ...............................................................................................................
Accumulated deficit ................................................................................................
Payables ................................................................................................................
Non-controlling interest ..........................................................................................
Loans and borrowings ...........................................................................................
Lease liabilities ......................................................................................................
Derivatives used for hedging .................................................................................
Loans and borrowings ...........................................................................................
Trade and other payables ......................................................................................
Deferred income ...................................................................................................
Lease liabilities ......................................................................................................
Cash and cash equivalents ....................................................................................
Receivables and deposits ......................................................................................
Inventories .............................................................................................................
Operating assets ...................................................................................................
Intangible assets and goodwill ...............................................................................
Investments in associates ......................................................................................
Derivatives used for hedging .................................................................................
Right-of-use assets ................................................................................................
Deferred tax assets ................................................................................................
Trade and other receivables ..................................................................................
Marketable securities .............................................................................................
Interim Financial Statements of Icelandair Group hf. 30 June 2024
7
Amounts are in USD thousands
Consolidated Statement of Changes in Equity
for the period from 1 January to 30 June 2024
Non-
Share Share Hedging Translation Other Accumulated controlling Total
1 January to 30 June 2023
capital premium reserve reserves deficit Total interest equit
y
310,973 0 182 )( 9,555 )( 29,187 57,914 )( 272,509 877 273,386
35,799
)
(
35,799
)
(
323 35,476
)
(
5,253 5,253 5 5,258
1,942 1,942 1,942
3,492 3,492 3,492
7,618
)
(
7,618
)
(
7,618
)
(
0 43
)
(
43
)
(
97 97 97
10,003 10,003 )( 0 0
310,973 0 4,308 )( 2,360 )( 39,190 103,619 )( 239,876 1,162 241,038
1 January to 30 June 2024
310,973 4,655 )( 1,604 )( 26,371 (44,015) 287,070 1,277 288,347
59,037 )( 59,037 )( 242 58,795 )(
2,959 )( 2,959 )( 2,959 )(
1,093 )( 1,093 )( 1,093 )(
5,630 5,630 5,630
1,162 1,162 1,162
420 420 420
7,657 7,657 )( 0 0
310,973 0 2,137 5,656 )( 34,028 110,289 )( 231,193 1,519 232,712
The notes on pages 9 to 15 are an integral part of these Interim Consolidated Financial Statements.
Equity 30 June 2024 ........................................................
and associates .............................................................
Effects of profit or loss of subsidiaries
and associates .............................................................
(Loss) profit for the period ...............................................
Equity 1 January 2024 .....................................................
Equity 30 June 2023 ........................................................
of cash flow hedges, net of tax .....................................
Stock options ...................................................................
Currency translation differences ......................................
Net profit on hedge of investment, net of tax ...................
(Loss) profit for the period ...............................................
Equity 1 January 2023 .....................................................
Effective portion of changes in fair value
Reserves
Attributable to equity holders of the Company
Cash flow hedges, reclassified to profit or loss ................
Effective portion of changes in fair value
Currency translation differences ......................................
of cash flow hedges, net of tax .....................................
Net loss on hedge of investment, net of tax ....................
Effects of profit or loss and of subsidiaries
Stock options ...................................................................
Divestment of Non-controlling interest .............................
Cash flow hedges, reclassified to profit or loss ................
Interim Financial Statements of Icelandair Group hf. 30 June 2024
8
Amounts are in USD thousands
Consolidated Statement of Cash Flows
for the six months ended 30 June 2024
Notes 2024 2023 2024 2023
Q2 Q2 YTD YTD
Cash flows to operating activities
622 13,656 58,795 )( 35,476 )(
Adjustments for:
9 37,261 34,746 70,822 64,285
12,923 7,104 23,132 12,329
10 2,139 7,255 5,445 10,197
42 )( 372 )( 73 )( 493 )(
0 1,381
)
(
0 1,381
)
(
646 361 )( 1,103 174
98 )( 1,685 13,336 )( 14,285 )(
53,451 62,332 28,298 35,350
Chan
g
es in:
820 630 )( 306 993 )(
6,165 49,137 38,279 )( 26,714 )(
42,226 29,580 69,060 62,445
7,484 3,237 )( 202,810 229,762
56,695 74,850 233,897 264,500
10,176 1,785 14,160 4,439
10,079
)
(
9,966
)
(
19,010
)
(
20,874
)
(
Net cash from operatin
g
activities 110,243 129,001 257,345 283,415
Cash flows to investing activities:
30,881 )( 38,356 )( 59,792 )( 78,722 )(
55 391 101 686
1,229 )( 350 )( 3,870 )( 9,022 )(
148 )( 91 )( 670 )( 175 )(
212 2,895 212 2,895
1,727 4,472 )( 2,202 8,261 )(
72,020 )( 11,469 )( 51,004 )( 26,678 )(
Net cash used in investing activities 102,284 )( 51,452 )( 112,821 )( 119,277 )(
Cash flows to financing activities:
0 0 0 63,461
11,307 )( 14,292 )( 24,362 )( 28,848 )(
14,793 )( 11,368 )( 28,240 )( 22,977 )(
Net cash used in financin
g
activities 26,100
)
(
25,660
)
(
52,602
)
(
11,636
Change in cash and cash equivalents
..................................................
18,141
)
(
51,889
91,922
175,774
Effect of exchange rate fluctuations on cash held
..............................
3 )( 22 275 )( 368
Cash and cash equivalents at beginning of the period
......................
.
309,305 348,483 199,514 224,252
Cash and cash equivalents at period end
............................................
291,161 400,394 291,161 400,394
122,013 68,837 122,013 68,837
Cash, cash equivalents and marketable securities at period end
..
413,174 469,231 413,174 469,231
Investment and financing without cash flow effect, see note 17.
The notes on pages 9 to 15 are an integral part of these Interim Consolidated Financial Statements.
Inventories ..........................................................................................
Deferred cost, change .............................................................................
Deferred income .................................................................................
Trade and other receivables ...............................................................
Depreciation and amortization ............................................................
Expensed deferred cost ......................................................................
Net finance cost ..................................................................................
Gain on sale of operating assets ........................................................
Share in loss (profit) of associates .....................................................
Income tax ..........................................................................................
Interest received .................................................................................
Profit (loss) for the period .......................................................................
Repayment of loans and borrowings .......................................................
Proceeds from loans and borrowings ......................................................
Marketable securities, change .................................................................
Acquisition of operating assets ................................................................
Proceeds from sale of operating assets ..................................................
Acquisition of intangible assets ................................................................
Gain on sale of subsidiary ..................................................................
Trade and other payables ...................................................................
Interest paid ........................................................................................
Repayment of lease liabilites ...................................................................
Non-current receivables, change .............................................................
Proceeds from sale of associates ............................................................
Marketable securities ...............................................................................
Interim Financial Statements of Icelandair Group hf. 30 June 2024
9
Amounts are in USD thousands
Notes
1. Reporting entity
Icelandair Group hf. (the "Company") is a public limited liability company incorporated and domiciled in Iceland. The
address of the Company's registered office is at Reykjavíkurflugvöllur in Reykjavík, Iceland. The Condensed Consolidated
Interim Financial Statements of the Company as at and for the six months ended 30 June 2024 comprise the Company
and its subsidiaries, together referred to as the "Group" and individually as "Group entities" and the Group's interests in
associates. The Group primarily operates in the airline industry. The Company is listed on the Nasdaq Main Market Iceland.
The Group's audited Consolidated Financial Statements as at and for the year ended 31 December 2023 are available at
its website address, www.icelandairgroup.com and at the Nasdaq Main Market Iceland website address,
www.nasdaqomxnordic.com.
2. Basis of accounting
a. Statement of compliance
The Group's Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2024 have been
prepared in accordance with IAS 34, Interim Financial Reporting. They do not include all the information required for a
complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and
transactions that are significant to an understanding of the changes in the Group's financial position and performance since
the last annual Consolidated Financial Statements as at and for the year ended 31 December 2023.
These Condensed Consolidated Interim Financial Statements were approved for issue by the Board of Directors on 17
July 2024.
b. Basis of measurement
The Condensed Consolidated Interim Financial Statements are prepared on the historical cost basis except that derivative
financial instruments, part of deferred income and certain short-term investments are stated at their fair values.
c. Going concern
The Condensed Consolidated Interim Financial Statements are prepared on a going concern basis.
3. Functional and presentation currency
The Company's functional currency is U.S. dollars (USD). These Condensed Consolidated Interim Financial Statements
are presented in USD. All financial information presented in USD has been rounded to the nearest thousand, unless
otherwise indicated.
4. Use of estimates and judgements
In preparing these Condensed Consolidated Interim Financial Statements, management has made judgements, estimates
and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group's accounting policies and the key sources of
estimations of uncertainty were the same as those that applied to the audited Consolidated Financial Statements as at and
for the year ended 31 December 2023.
5. Changes in accounting policies
The accounting policies and methods of computation applied in these Condensed Consolidated Interim Financial
Statements are the same as those applied by the Group in its Consolidated Financial Statements as at and for the year
ended 31 December 2023. A number of new standards are effective for annual periods beginning after 1 January 2024
and earlier application is permitted; however, the Group has not early adopted the new or amended standards in preparing
these Condensed Consolidated Interim Financial Statements and they are not considered to have significant impact on
the Condensed Consolidated Interim Financial Statements.
Notes, contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
10
Amounts are in USD thousands
6. Operating segments
Segment information is presented in the Condensed Consolidated Interim Financial Statements in respect of the Group's
business segments, which are the primary basis of segment reporting. The business segment reporting format reflects the
Group's management and internal reporting structure and is divided into three segments; Route network, Cargo operation
and Leasing operation.
The management of Icelandair Group assesses performance based on segment revenue and profit or loss and makes
resource allocation decisions for the segment based on various performance metrics. The objective in making resource
allocation decisions is to optimize consolidated financial results.
Inter-segment pricing is determined on an arm's length basis.
Route network
The Route network business unit is the main reporting segment, which provides international and domestic passenger air
travel to, from, via and within Iceland by the entities Icelandair ehf. and Flugfélag Íslands ehf.
The segment also consist of the parent company Icelandair Group hf., the holding company, and other entities such as
Iceeignir, a real estate entity, IceCap, a captive insurance entity, CAE Icelandair Flight Traning, which operates flight
simulators and Feria, a travel agency, are platform functions of the business that primarily support the Group entities in this
segment and are therefore classified within this segment.
Cargo operation
The Cargo operation offers air-freight services to, from, via and within Iceland by utilizing the capacity within the aircraft of
the Icelandair passenger network as well as with their own freighters.
Leasing operation
The Leasing operation offers aircraft leasing and consulting services to international passenger airlines and tour operators.
Reporting segments for the six months ended 30 June 2024
Route Cargo Leasing
network operation operation Adjustments Total
588,845 38,070 41,429 0 668,344
31,399 1,820 651 33,870 )( 0
620,244 39,890 42,080 33,870 )( 668,344
627,782 )( 21,801 )( 13,522 )( 0 663,105 )(
1,866 )( 16,268 )( 15,736 )( 33,870 0
629,648 )( 38,069 )( 29,258 )( 33,870 663,105 )(
61,914 )( 2,502 )( 6,406 )( 0 70,822 )(
71,318 )( 681 )( 6,416 0 65,583 )(
4,713 )( 1,123 )( 391 0 5,445 )(
14,336 361 1,361 )( 0 13,336
62,798 )( 1,443 )( 5,446 0 58,795 )(
1,706,038 88,371 100,790 95,576 )( 1,799,623
53,817 1,898 12,978 4,361 )( 64,332
1,517,958 71,392 73,137 95,576 )( 1,566,911
Segment liabilities ..............................................
(Loss) profit ........................................................
Depreciation and amortization ...........................
Segment EBIT ....................................................
Net finance cost .................................................
Income tax .........................................................
External revenue ................................................
Inter-segment revenue .......................................
Total segment revenue ......................................
External operating cost ......................................
Internal operating cost ........................................
Total operating cost ...........................................
Segment assets .................................................
Capital expenditures ..........................................
Notes, contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
11
Amounts are in USD thousands
6. Operating segments, contd.:
Geographic information
The geographic analyses the Group's revenue as the majority of the Group's clients are outside of Iceland. The vast
majority of the Group's non-current assets are located in Iceland. In presenting the following information the Group's
revenues have been based on geographic location of customers.
Reporting segments for the six months ended 30 June 2023
Route Cargo Leasing
network operation operation Adjustments Total
560,819 50,000 36,616 0 647,435
28,830 1,157 182 30,169 )( 0
589,649 51,157 36,798 30,169 )( 647,435
574,467 )( 35,124 )( 14,330 )( 0 623,921 )(
1,337 )( 19,951 )( 8,881 )( 30,169 0
575,804 )( 55,075 )( 23,211 )( 30,169 623,921 )(
55,330 )( 4,002 )( 4,953 )( 0 64,285 )(
41,486 )( 7,919 )( 8,634 0 40,771 )(
8,529 )( 1,882 )( 214 0 10,197 )(
14,093 1,960 1,768 )( 0 14,285
34,714 )( 7,841 )( 7,079 0 35,476 )(
1,678,415 109,090 53,477 77,265 )( 1,763,717
80,210 7,843 9,128 9,262 )( 87,919
1,492,116 82,839 24,989 77,265 )( 1,522,679
Segment assets .................................................
Capital expenditures ..........................................
External revenue ................................................
Inter-segment revenue .......................................
Total segment revenue ......................................
External operating cost ......................................
Internal operating cost ........................................
Total operating cost ...........................................
Depreciation and amortization ...........................
Net finance cost .................................................
Segment EBIT ....................................................
Income tax .........................................................
Segment liabilities ..............................................
(Loss) profit ........................................................
Geographic segments for the six months ended 30 June 2024
North America Europe Iceland Other Total
313,953 125,300 101,902 10,889 552,045
3,104 13,232 19,343 1,903 37,581
17,434 0 1,585 20,963 39,982
1,399 1,523 35,472 342 38,736
335,890 140,055 158,302 34,097 668,344
50% 21% 24% 5% 100%
Passenger revenue ............................................
Leasing revenue ................................................
Other Operating revenue ...................................
Total revenue .....................................................
Total revenue % .................................................
Cargo revenue ...................................................
Geographic segments for the six months ended 30 June 2023
Restated
North America Europe Iceland Other Total
288,268 123,585 101,479 9,937 523,268
1,712 14,614 29,382 2 45,711
16,274 0 2,504 19,761 38,539
2,416 1,386 36,089 26 39,917
308,670 139,585 169,454 29,726 647,435
47% 22% 26% 5% 100%
Passenger revenue ............................................
Leasing revenue ................................................
Other Operating revenue ...................................
Total revenue .....................................................
Cargo revenue ...................................................
Total revenue % .................................................
Notes, contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
12
Amounts are in USD thousands
7. Operating income
8. Operating expenses
9. Depreciation and amortization
2024 2023 2024 2023
Passenger revenue is specified as follows:
Q2 Q2 YTD YTD
330,178 330,123 514,138 486,462
23,005 22,605 37,907 36,806
353,183 352,728 552,045 523,268
Other operating revenue is specified as follows:
10,376 10,128 22,423 22,520
1,218 1,774 2,577 3,267
2,483 1,957 3,684 3,148
42 373 73 498
4,542 5,744 9,979 10,484
18,661 19,976 38,736 39,917
Sale at airports .........................................................................
Aircraft handling .......................................................................
Gain on sale of operating assets ..............................................
Other operating revenue ..........................................................
Total other operating revenue ..................................................
Passenger revenue ..................................................................
Ancillary revenue ......................................................................
Total passenger revenue .........................................................
Revenue from tourism ..............................................................
2024 2023 2024 2023
Q2 Q2 YTD YTD
Salaries and salary-related expenses are specified as follows:
83,129 78,996 155,462 138,752
13,466 12,570 25,430 22,254
10,373 14,364 20,568 23,586
106,968 105,930 201,460 184,592
3,708 3,795 3,573 3,443
Aircraft fuel is specified as follows:
89,926 82,840 152,082 143,384
5,602 6,474 8,689 10,534
1,003 6,266 152 )( 8,270
96,531 95,580 160,619 162,188
Other aviation expenses is specified as follows:
529 6,188 1,651 7,035
42,181 39,000 71,258 65,347
31,136 25,836 55,509 47,452
73,846 71,024 128,418 119,834
Other o
p
eratin
g
ex
p
enses are s
p
ecified as follows:
19,689 18,799 35,311 32,435
7,990 7,283 17,321 16,396
7,942 8,534 16,868
15,702
5,710 5,829 13,449
14,140
17,018 17,169 29,003
26,778
21,401 16,162 36,472
27,755
2,314 2,390 5,015 4,756
33 854 547 1,389
9,371 9,026 18,622 17,956
91,468 86,046 172,608 157,307
Operating cost of real estate and fixtures .................................
Allowance for bad debt .............................................................
Other operating expenses ........................................................
Total other operating expenses ................................................
IT expenses .............................................................................
Advertising ...............................................................................
Booking fees and commission expenses .................................
Customer services ...................................................................
Aircraft maintenance expenses ................................................
Total other aviation expenses ..................................................
Travel and other employee expenses ......................................
Tourism expenses ....................................................................
Aircraft fuel ...............................................................................
Emission charges .....................................................................
Fuel hedges .............................................................................
Total aircraft fuel cost ...............................................................
Aircraft and engine lease ..........................................................
Average number of full time equivalents ..................................
Salaries ....................................................................................
Contributions to pension funds .................................................
Other salary-related expenses .................................................
Total salaries and salary-related expenses ..............................
Aircraft handling, landing and navigation ..................................
2024 2023 2024 2023
Q2 Q2 YTD YTD
The depreciation and amortization charge in profit or loss is specified as follows:
23,632 22,393 44,179 40,557
13,506 12,247 26,381 23,525
123 106 262 203
37,261 34,746 70,822 64,285
Depreciation of operating assets ..............................................
Depreciation of right-of-use assets ...........................................
Amortization of intangible assets ..............................................
Depreciation and amortization recognized in profit or loss .......
Notes, contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
13
Amounts are in USD thousands
10. Finance income and (finance cost)
11. Loans and borrowings
This note provides information on contractual terms of the Group's interest-bearing loans and borrowings, which are
measured at amortized cost, and changes during the year.
The Company has two committed credit lines in place with local banks in the total amount of USD 52 million. The lines
were undrawn at 30 June 2024.
The Group was not in breach of any financial covenants at 30 June 2024.
2024 2023 2024 2023
Finance income and (finance cost) are specified as follows:
Q2 Q2 YTD YTD
Interest income on cash and cash equivalents
6,884 3,055 13,131 6,902
818 42 1,156 92
1,266 517 2,728 1,368
0 438 )( 0 1,152
8,968
3,176
17,015
9,514
4,008 )( 4,784 )( 8,132 )( 9,062 )(
5,980 )( 4,968 )( 10,732 )( 9,373 )(
631 )( 679 )( 2,027 )( 1,276 )(
488 )( 0 1,569 )( 0
11,107 )(
10,431 )(
22,460 )(
19,711 )(
2,139 )(
7,255 )(
5,445 )(
10,197 )(
Net finance cost .......................................................................
Other interest expenses ...........................................................
Net currency exchange loss .....................................................
Finance cost total .....................................................................
and marketable securities ......................................................
Interest income on lease receivables .......................................
Other interest income ...............................................................
Net currency exchange (loss) gain ...........................................
Finance income total ................................................................
Interest expenses on loans and borrowings .............................
Interest on lease liabilities ........................................................
Loans and borrowings are specified as follows:
Non-current loans and borrowings:
30.6.2024 31.12.2023
216,144 239,335
10,687 12,995
226,831 252,330
41,018 )( 44,940 )(
185,813 207,390
Current loans and borrowings:
41,018 44,940
41,018 44,940
226,831
252,330
Total loans and borrowings ..................................................................................................
Current maturities .................................................................................................................
Current maturities .................................................................................................................
Total loans and borrowings ..................................................................................................
Total current loans and borrowings ......................................................................................
Secured bank loans ..............................................................................................................
Unsecured loans ..................................................................................................................
Total non-current loans and borrowings ...............................................................................
Terms and debt repayment schedule:
Nominal
interest Year of
Currency rates maturity
30.6.2024 31.12.2023
USD 6.9% 2026-2034
180,900 199,589
EUR 4.0% 2028
35,244 39,746
ISK 4.4% 2026-2030
10,687 12,995
226,831 252,330
Unsecured loans ................................................
Total interest-bearing liabilities .............................................................................................
Total
Secured bank loans ...........................................
remaining balance
Secured bank loans ...........................................
Repayments of loans and borrowings are specified as follows:
30.6.2024 31.12.2023
20,456 44,940
41,207 41,542
38,093 38,372
20,777 21,124
54,959 54,999
51,339 51,353
226,831 252,330
Repayments in 2025 .............................................................................................................
Repayments in 2027 .............................................................................................................
Repayments in 2024 (6 months)(2023: 12 months) ..............................................................
Total loans and borrowings ..................................................................................................
Subsequent repayments .......................................................................................................
Repayments in 2028 .............................................................................................................
Repayments in 2026 .............................................................................................................
Notes, contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
14
Amounts are in USD thousands
12. Lease liabilities
This note provides information of the Group's lease liabilities, which are measured at amortized cost, and changes during
the year.
Further lease commitments are in place for seven A321LR aircraft scheduled for delivery to the Route network as
demonstrated in the table below. The total lease liability for these seven aircraft is estimated to be around USD 307 million.
13. Deferred income
Sold unused tickets, fair value of unredeemed frequent flyer points and other prepayments are presented as deferred
income in the Consolidated Statement of Financial Position.
The amount allocated to sold unused tickets and vouchers is the book value of fares and fuel surcharges that the Group
has collected and is liable for to passengers. Thereof sold tickets with future travel dates amounted to USD 458.7 million
(2023: USD 247.1 million) and vouchers amounted to USD 19.8 million (2023: USD 25.4 million). When issued the
vouchers are generally valid for 3 years. The validity of covid-related vouchers has been extended by an additional two
years from the date of original issuance.
The amount allocated to frequent flyer points is estimated by reference to the fair value of the discounted services for which
they could be redeemed, since the fair value of the points themselves is not directly observable. The fair value of the
discounted services for which the points, granted through a customer loyalty program, can be redeemed takes into account
the expected redemption rate and the timing of such expected redemptions. That amount is recognized as deferred income.
Other prepayments concist mainly of prepayments for packages and charter flights.
Interest Year of
Currency
rates maturity
30.6.2024 31.12.2023
USD 5.0% 2024-2033
436,656 376,530
ISK 5.1% 2024-2038
6,475 8,415
GBP 2.2% 2024-2026
322 437
o
th
e
r
6
.
5%
2024
-
2028
760 868
62,409)( 54,083 )(
381,804 332,167
Lease liabilities indexed .....................................
Current maturity ....................................................................................................................
Total lease liabilities .............................................................................................................
Total
Lease liabilities ...................................................
Lease liabilities ...................................................
Lease liabilities ..................................................
remaining balance
Repayments of lease liabilities are specified as follows:
30.6.2024 31.12.2023
31,513 54,083
61,965 52,432
62,326 52,287
59,270 48,474
54,716 43,100
174,423 135,874
444,213 386,250
Repayments in 2027 .............................................................................................................
Subsequent repayments .......................................................................................................
Repayments in 2025 .............................................................................................................
Total loans and borrowings ..................................................................................................
Repayments in 2024 (6 months)(2023: 12 months) ..............................................................
Repayments in 2028 .............................................................................................................
Repayments in 2026 .............................................................................................................
Q4 2024 Q1 2025 Q4 2025 Q1 2026 Total
2 2 2 1 7
2 2 2 1 7
A321LR ..............................................................
Total ...................................................................
Deferred income is specified as follows:
30.6.2024 31.12.2023
478,476 272,481
24,558 22,137
17,549 23,167
520,583 317,785
Total deferred income ...........................................................................................................
Sold unused tickets and vouchers ........................................................................................
Frequent flyer points .............................................................................................................
Other prepayments ...............................................................................................................
Notes, contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
15
Amounts are in USD thousands
14. Financial instruments and fair value
The fair value of financial assets and liabilities, together with the carrying amounts shown in the Consolidated Statement
of Financial Position, are as follows. The table does not include fair value information for financial assets and liabilities
measured at fair value if the carrying amount is a reasonable approximation of fair value:
15. Capital commitments
On 6 July 2023, the Group finalized the purchase agreement for up to 25 A321XLR aircraft from Airbus. The order consists
of 13 firm orders and purchase rights for up to 12 additional aircraft. The aircraft deliveries will commence in 2029. In
addition the Group has also concluded long-term agreements for seven new A321LR aircraft, five with SMBC Aviation
Capital Limited and two with CDB Aviation, scheduled for delivery to the Route network as demonstrated in the table in
note 12.
16. Group entities
The Company held the following significant subsidiaries at the end of June 2024:
The subsidiaries further own seven minor operating companies that are also included in the Interim Consolidated Financial
Statements.
17. Investment and financing without cash flow effect
Many investing and financing activities do not have a direct impact on current cash flows although they do affect the capital
and asset structure of the Group and should be excluded from the Statement of Cash Flows. The exclusion of non-cash
transactions from the Statement of Cash Flows as these items do not involve cash flows in the current period.
Carrying Carrying
amount Fair value amount Fair value
2,772 2,772
5,807)( 5,807)(
10,687)( 10,137)( 12,995)( 12,285)(
216,144)( 220,828)( 239,335)( 249,713)(
444,213 )( 444,213 )(
386,250)( 386,250)(
668,272 )( 672,406 )( 644,387)( 654,055)(
Total .........................................................................................
Unsecured bond issue .............................................................
30.6.2024 31.12.2023
Derivatives used for hedging ....................................................
Lease liabilities .........................................................................
Secured loans ..........................................................................
Q2 2024 2023
100% 100%
100% 100%
100% 100%
67% 67%
100% 100%
100% 100%
100% 100%
100% 100%
Flugfélag Íslands ehf. .....................................................................................................
Icelandair Cargo ehf. ......................................................................................................
Iceeignir ehf. .........................................................................................................................
Icelandair ehf. .......................................................................................................................
FERIA ehf. ............................................................................................................................
Loftleiðir - Icelandic ehf. .......................................................................................................
IceCap Insurance PCC Ltd. ..................................................................................................
CAE Icelandair Flight Training ehf. .................................................................................
Ownership interest
2024 2023 2024 2023
Investment and financing without cash flow effect:
Q2 Q2 YTD YTD
51,613 578 87,476 73,405
48,790 )( 578 )( 59,213 )( 73,405 )(
2,823 )( 0 28,263 )( 0
22,917 )( 0 22,917 )( 0
22,917 0 22,917 0
9,938 )( 0 9,938 )( 0
9,938 0 9,938 0
Trade and other payables ........................................................
New or renewed leases ............................................................
Acquisition of right-of-use assets .............................................
Non-current receivables ...........................................................
Investment in associates ..........................................................
Trade and other receivables .....................................................
Non-current receivables, pre delivery payments ......................
Interim Financial Statements of Icelandair Group hf. 30 June 2024
16
Amounts are in USD thousands
Alternative performance measures (APMs)
2024 2023 2024 2023
Traffic Q2 Q2 YTD YTD
4,563 4,226
7,422
6,581
7.9 8.6 7.7 8.2
8.0 8.2 8.7 9.0
6.0 6.1 6.7 6.8
9.1 9.6 8.9 9.2
3,722 3,535 5,914 5,366
1,218 1,181 1,975 1,845
86.0% 75.1% 85.3% 76.0%
4,834 4,488 8,201 7,308
81.6% 83.6% 79.7% 81.5%
4,798 3,798 8,861 7,530
29,871 45,914 69,273 89,147
305 303 499 480
0.74 0.74 0.76 0.76
Passenger mix ('000)
352 417 636 705
194 214 344 352
604 482 866 659
68 68 129 129
Capital structure
30.6.2024 31.12.2023
413,174 270,522
465,174 322,522
186,343 )( 18,192 )(
406,863 370,564
220,520 352,372
0.68 0.71
0.13 0.19
0.75 0.93
2024 2023 2024 2023
Other
Q2 Q2 YTD YTD
936 913 943 989
32,258 38,797 64,332 87,919
32,203 38,406 64,231 87,233
3,708 3,795 3,573 3,443
To ....................................................................................
From ................................................................................
Total cash and marketable securities (USD '000) .............................................................
Liquidity (USD ´000) .........................................................................................................
Effective fuel price (USD pr. Metric ton) .............................
CAPEX, gross (USD '000) ..................................................
Intrinsic value of share capital ...........................................................................................
CAPEX, net (USD '000) ......................................................
Average FTE ......................................................................
Net interest-bearing debt (USD ´000) ............................................................................
Net lease liabilites (USD ´000) .......................................................................................
Current ratio ......................................................................................................................
Equity ratio ........................................................................................................................
Via ...................................................................................
Within ..............................................................................
On-Time-Performance OTP ...............................................
Passenger flights ................................................................
Passenger load factor .........................................................
Sold Block Hours - Leasing ................................................
Freight ton kilometers (FTK´000) ........................................
Total CO2 emissions tons ('000) ........................................
CO2 emissions per OTK .....................................................
Net financial liabilities (USD ´000) ....................................................................................
Passenger total ('000) ........................................................
Available seat-kilometers ASK (m.) ....................................
RASK (US cents) ................................................................
CASK (US cents) ................................................................
Revenue Passenger Kilometer (RPK m.) ...........................
CASK less fuel (US cents) ..................................................
Yield (USD cents) ...............................................................
Alternative performance measures (APMs), contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
17
Traffic
Available seat-kilometers (ASK) ..........
RASK ..................................................
CASK ..................................................
CASK less fuel ....................................
Yield ....................................................
Revenue Passenger Kilometer (RPK) .
Passengers total .................................
On-Time-Performance (OTP) ..............
Passenger flights .................................
Passenger load factor .........................
Sold Block Hours - Leasing .................
Freight ton kilometers (FTK) ................
Total CO2 emissions tons ...................
CO2 emissions per OTK .....................
Passenger mix:
To .....................................................
From ................................................
VIA ...................................................
Within ...............................................
Capital sturcture
Total cash and
marketable securities ......................
Liquidity ...............................................
Net interest-bearing debt .....................
Net lease liabilities ...............................
Current ratio .......................................
Equity ratio ..........................................
Intrinsic value of share capital .............
The average amount of total passenger revenue received per paying passenger flown
one kilometer. Total Yield is calculated as total passenger revenue/RPK. Total
passenger revenue used for this calculation includes airfare, excess baggage, cabin
upgrade and seat selection revenue
The number of revenue passengers carried on scheduled flights multiplied by the
number of kilometers flown
Each passenger is counted by the number of flight coupons his journey requires. A
passenger flying KEF-CPH is counted as one passenger, a passenger flying NYC-KEF
-
CPH is counted as two passengers
Total operating and depreciation cost per available seat kilometer less fuel is
calculated by deducting cost of fuel, fuel hedges, carbon emissions trading expenses
and de-icing from total operating and depreciation cost and divide by total available
seat kilometers
(
ASK
)
Cash and cash equivalents (including cash from assets held for sale) and marketable
securities
A measure of flights arriving within 15 minutes of scheduled arrival time. OTP is
calculated by dividing the number of arrivals that arrive within 15 minutes of scheduled
arrival time with the total number of arrivals
Passenger visiting Iceland
Passengers originating in Iceland visiting destinations outside of Iceland
The number of tons of freight carried, obtained by counting each ton of freight on a
particular flight (with one flight number)
Carbon emission from all flights, measured in tons
Sold Block Hours in the leasing operation. Block Hours is the time computed from the
moment the blocks are removed from the wheels of the aircraft until they are replaced
at the next point of landing
CO2 emitted by moving one payload tonne one kilometer for all international flights
Lease liabilities (including assets held for sale, net of lease receivables)
Indicates the book value of each share and is calculated by dividing total equity with
share capital
Total cash and cash equivalents (including cash from assets held for sale), marketable
securities and undrawn revolving facilities
Loans and borrowings, net of total cash and marketable securities
Indicates how many times over current assets can cover current liabilities and is
calculated by dividing current assets with current liabilities
Indicates the ratio of how leveraged the Company is and is calculated by dividing total
e
q
uit
y
with total assets
Flight flown by an airline for the purpose of carrying passengers, belly freight and mail
according to a published timetable for which it receives commercial remuneration
Calculated by dividing RPK by ASK
Passengers traveling across the Atlantic connecting in Iceland
Passengers traveling solely within Iceland
The total number of seats available on scheduled flights multiplied by the number of
kilometers these seats were flown
Total revenues on a given flight divided by the ASK on that same flight
Total operating and depreciation cost per available seat kilometer is calculated by
dividing total operating and depreciation cost on a given flight by available seat
kilometers
(
ASK
)
on that fli
g
ht
Alternative performance measures (APMs), contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
18
Other
Effective fuel price ...............................
CAPEX, gross .....................................
CAPEX, net .........................................
Average FTE .......................................
Cost of jet fuel and surcharges, including hedging results, but excluding de-icing and
emissions trading cost (pr. ton)
Capital expenditure of operating assets, intangible assets and deferred cost
Average full time employee equivalent
Capital expenditure of operating assets, intangible assets and deferred cost less
proceeds from sale of operating assets
Alternative performance measures (APMs), contd.:
Interim Financial Statements of Icelandair Group hf. 30 June 2024
19