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Keflavík airport Icelandair
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Icelandair Sees Booking Decline Amid Reykjanes Unrest

The ongoing geological unrest on the Reykjanes peninsula has led to a significant slowdown in inbound tourist bookings with Icelandair. The company’s CEO has emphasised that Iceland remains open to visitors and expressed solidarity with the evacuated residents of Grindavik.

Bookings to Iceland slowed significantly

Yesterday, the Icelandair Group – the owner and holding company of the Icelandair airline – issued a press release via GlobeNewsWire regarding the recent geological unrest on the Reykjanes peninsula. 

The press release notes that while the ongoing seismic activity had not impacted the company’s flight operations at Keflavik International Airport, booking flow for inbound tourists to Iceland had slowed significantly for the near term. 

Given that bookings during the winter months are made close to the date of travel, the current situation was affecting the company’s revenue generation for the remainder of the year; tourists to Iceland are an important factor in revenue generation for November and December.

With this situation ongoing, thee press release continued, the guidance – information or predictions provided to investors or the market – that Icelandair provided to the market on September 13 was no longer applicable. Furthermore, the ongoing uncertainty precluded the possibility of providing accurate guidance for the full year. The Company still expects, however, to return a net profit after taxes in 2023.

The press release also quotes Bogi Nils Bogason, President and CEO of Icelandair:

“We would like to emphasise that the seismic activity in Southwest Iceland has had no impact on flights to and from Iceland and the country is welcoming visitors. These events have, however, impacted the lives of people living in the town of Grindavik that has [sic] been evacuated and our thoughts are with them. As a leading airline in Iceland for decades, we are used to dealing with the natural elements and are well prepared for various different scenarios. We are in close contact with the authorities and scientists that are closely monitoring the situation and in the event of any changes to our schedule, we will communicate via our normal channels.”

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