In an interim report published by Icelandair Group yesterday, Icelandair announced that it had secured a second partial compensation agreement with Boeing (the first agreement was reached in September), owing to the “unprecedented impact” of Icelandair’s five Boeing MAX aircraft having been grounded since last March. The conditions of the agreement are confidential. According to RÚV, Icelandair will continue to negotiate with Boeing for further compensation.
As Iceland Review reported last week, Icelandair does not expect its Boeing 737 Max planes to return to service until the end of February 2020. The airline has adjusted its flight schedule through February 2020. The decision will have a “minimum impact” on previously scheduled flights.
In the above-mentioned report, Bogi Nils Bogason, CEO of Icelandair Group, states that the company’s third-quarter results show improvements in Icelandair Group’s underlying operations despite the suspension of the MAX aircraft: “Operational improvements with EBIT amounting to USD 81.1 million in the quarter, up by USD 2.8 million.” The report also notes that the number of passengers who travelled to Iceland in the quarter increased by 27%.
Icelandair Group’s fourth-quarter results are also expected to improve compared to last year.