American hedge fund PAR Capital Management has bought an 11% stake in Icelandair Group, reports GlobeNewswire. The stake corresponds to an investment of ISK 5.6 billion ($47m/€42m). Icelandair has operated at a significant loss in recent quarters, but the recent bankruptcy of WOW air could present an opportunity for the airline to improve its financial situation.
The additional capital is expected to solidify Icelandair’s financial situation and better prepare it for growth in the near future. “PAR Capital Management is a great addition to our strong group of shareholders,” stated Bogi Nils Bogason, President and CEO of Icelandair Group. “We believe that a partnership with PAR Capital Management will bring substantial value to Icelandair Group. It is moreover pleasant to have this seasoned international investor share our belief in the prospects of the Company.”
Based in Boston, Massachusetts, PAR manages a US$4 billion (ISK 478 billion) private investment partnership. The firm has invested primarily in the digital media and travel industries since its founding in 1990.