In its 2022 fourth-quarter earnings report on Thursday, Icelandair said its operation experienced strong revenue growth that resulted in the best Q4 performance in seven years. Unit revenue in the quarter, specifically, was up more than 10% year-on-year, according to the carrier.

Despite weather-related disruptions, the airline’s capacity in the final quarter of last year was 95% of 2019’s capacity. The airline also successfully introduced new aircraft into its fleet throughout the year.

Inside the numbers

Icelandair said it had a strong revenue performance, with record numbers in Q4. Load factors also improved immensely, along with increased yields in both cabins and all markets, according to the carrier. Passenger and cargo revenue experienced slight disturbances due to weather in December. Here is a breakdown of the numbers:

  • Total income amounted to $290.8 million, up from $192.5 million in Q4 of 2021
  • Transport revenue was $255.3 million, up 63% on 48% more production
  • Passenger revenue amounted to $217.4 million
  • Cargo revenue totaled $19.9 million, down by 18% due to less capacity from the maintenance of one freighter and less transit freight resulting from softer demand caused by the economic turmoil in Europe
  • Aircraft and aircrew leases revenue amounted to $17.6 million, increasing by 23% year-on-year on higher charter sales
  • Other operating revenue was $17.9 million, which decreased by $3.9 million year-on-year

The airline said the divestment of travel to Iceland in December of 2021 was the main reason for lower revenue. In the full year, the carrier reported an earnings before interest and taxes (EBIT) of $19 million, which reportedly was an improvement of $136 million.

Icelandair Boeing 737 MAX tails
Photo: Icelandair

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“We are back on track”

Icelandair President & CEO, Bogi Nils Bogason, said,

"I would like to thank our customers for their trust, our partners for their cooperation and our shareholders for their support during the year. However, first and foremost, I would like to thank our employees for what we have achieved together. With our exceptional team, robust foundations of our business, healthy financial position and of course our extensive and flexible route network that allows us to constantly adapt, we look forward to seizing the opportunities ahead and continuing to bring the spirit of Iceland to the world.” - Bogi Nils Bogason, Icelandair President & CEO

Bogason also mentioned that the airline increased its flight schedule last year.

“Our strategy and actions throughout the pandemic ensured we were prepared to rapidly increase capacity to meet the steep increase in demand in all our markets,” Bogason said. “In 2022, we doubled our flight schedule and transported 3.7 million passengers to 51 destinations.”

Renewed in 2023

Among the airline’s successful earnings report, Icelandair also has plans to continue its fleet renewal program. In 2022, the carrier took delivery of seven Boeing 737 MAX 8 aircraft, which included the last three planes from its initial order in 2013. This year, the airline plans to receive four more 737 MAX’s bringing the total number of the aircraft type in its fleet to 20.

Icelandair Boeing 757-200 inflight.
Photo: Icelandair

The fleet renewal efforts come as Icelandair continues to phase out its beloved Boeing 757 while also reportedly considering Airbus aircraft to join its fleet in the future.

“The future fleet strategy of Icelandair has been thoroughly reviewed in recent years, where options for fleet renewal and growth have been identified,” the airline stated. “These re-fleeting options include the B737 MAX as well as the Airbus A320 family.”

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