Icelandair said its first-quarter results should be better than forecast at the beginning of the year, largely as a result of increased sales and better fleet utilization.
In an interim first-quarter financial statement, the airline said it expected its EBITDA for the quarter to be negative in the range of $2 million to $4 million. Load factor on international flights was 4.9 percentage points higher than the year-ago quarter, and the exchange of the euro to the US dollar had been more favorable than expected.
Icelandair said prospects for the full year were favorable, with bookings for the peak season looking promising. The forecast for 2015 now assumes that euro/dollar exchange rate will be 1.07 on average for the last nine months of the year as against the 1.15 assumed in the forecast published in February.
The airline said: “The strengthening of the US dollar against the European currencies has and will have a bad influence on the company’s results, especially during the high season. Better results in 1Q leads to an unchanged forecast for the full year, despite unfavorable development in currency rates.”
The airline anticipates that EBITDA will be in the range of $160-$165 million for the full year, up from $154.3 million in 2014.
Icelandair stressed, however, that “the results are very sensitive to external factors such as currency and fuel price fluctuations and uncertainty in the labor market in Iceland can have significant impact on the results.”
The interim financial statement for 1Q1 2015 will be published Wednesday.