Icelandair sees 67% profit jump

Icelandair Cargo Boeing 757-200

Icelandair Group has seen its yearly profits increase by 67 per cent to $111.2 million in 2015, helped by a number of factors including strong cargo results.

The group was helped by large falls in aircraft fuel and leasing costs. Its fuel costs fell by 16 per cent to $229.3 million and leasing was down by 14 per cent to $22.9 million. It made a profit of $300,000 in the fourth quarter, which the group says is the first time this period has registered a positive result.

Icelandair Group does not release figures for individual business areas, but the president and chief executive officer, Björgólfur Jóhannsson cargo results were good. He says: “A number of interacting factors contributed to the strong performance, including falling fuel prices, increased demand in the North Atlantic market – which was met by increased capacity – and good results from charter and cargo operations.”

In 2015, freight tonne kilometres (FTK) rose by three per cent to 100.5 million and capacity in available tonne kilometres (ATK) increased by 13 per cent to 242.2 million. In January 2016, FTK increased by 11 per cent to 8.6 million and ATK was up by 15 per cent to 17.3 million.

In 2015 Icelandair Cargo started Boeing 757-200 Freighter flights between Keflavik and Boston Logan because of strong US demand for fresh Icelandic seafood. In February it appointed Air Logistics Group as its general sales and service agent for Germany, and Global Air Cargo to represent it in Switzerland. In February Icelandair increased UK services with twice weekly services to Birmingham. In May it also took over Air Iceland’s freight sales and marketing.