A Profitable 2023 for Icelandair Despite Q4 Challenges Skip to content
Icelandair Boeing 737 MAX
Photo: Golli.

A Profitable 2023 for Icelandair Despite Q4 Challenges

Icelandair rebounded from years of losses to an ISK 1.5 billion [$11 million / €10 million] profit in 2023, with passenger numbers up 17% and plans for expanded flight service in 2024 despite fourth-quarter challenges.

A profit after a series of challenging years

In a report on its Q4 and 12-month 2023 performance, Icelandair revealed that the airline earned a profit of ISK 1.5 billion ISK in 2023 [$11 million / €10 million] in 2023, which is a significant turnaround from last year when the airline experienced a loss of ISK 800 million [$5.9 million / €5.4 million]. As noted by RÚV, Icelandair had previously reported losses since 2017. 

“It is an important milestone to report a profit after taxes for the entire year after challenging recent years. Revenue generation was very strong this year, and we successfully met the high demand across all our markets, especially from North America to Iceland,” Bogi Nils Bogason, CEO of Icelandair, told RÚV yesterday. He is positive about the outlook.

“The market to Iceland is rebounding following recent events, with Iceland remaining a sought-after destination. We are also seeing a higher proportion of bookings across the Atlantic than before. Our flight schedule for 2024 will be about 11% larger than in 2023, with 57 destinations, including three new ones – Pittsburgh, Halifax, and Vágar in the Faroe Islands,” Bogi Nils stated. 

The number of passengers flying with Icelandair was 4.3 million in 2023, an increase of 17% since last year. Seat utilisation for passengers within Iceland in 2023 also increased by 2%. The airline’s liquidity position amounted to ISK 44 billion ($323 million / €297 million) at the end of the year.

Fourth-quarter performance marred by geological unrest

Icelandair’s announcement highlighted that seismic activities, volcanic eruptions, and air traffic controllers’ strikes significantly impacted the airline’s fourth-quarter performance: “Following the news that the town of Grindavík was evacuated due to anticipated volcanic eruptions, bookings dropped significantly.” 

Mbl.is reported that shares in Icelandair had fallen by 6.9% during the first trades on NASDAQ Iceland this morning.

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