Icelandair

A huge fourth-quarter loss related to the collapse of Iceland’s banking and financial sector last fall dragged Icelandair Group to a ISK7.47 billion (US$65.9 million) full-year deficit, reversed from a ISL257 million profit in 2007. Revenue soared 77.7 per cent year-over-year to ISK112.74 billion owing largely to a more than- threefold increase in aircraft and […]


A huge fourth-quarter loss related to the collapse of Iceland’s banking and financial sector last fall dragged Icelandair Group to a ISK7.47 billion (US$65.9 million) full-year deficit, reversed from a ISL257 million profit in 2007. Revenue soared 77.7 per cent year-over-year to ISK112.74 billion owing largely to a more than- threefold increase in aircraft and crew leasing revenue. Operating loss of ISK5.69 billion compared to a ISK2.34 billion profit in the prior year. Fuel costs nearly tripled. “In the first nine months of 2008, the Group’s operations were successful and a good operating year was expected despite a projected fourth quarter loss. The events that transpired in Iceland in October and their consequences drastically altered the operating conditions… and for that reason we regard the operating results of the yearas relatively strong,” CEO Bjorgolfur Johannsson said.