Icelandair Reports Second Quarter 2025 Net Profit of $13 Million
- Joe Breitfeller
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Icelandair has reported a second quarter 2025 net profit of $13 million, an increase of $12 million compared to Q2 2024, on a 13 percent year-over-year increase in revenue to $463 million.
On Thursday (July 17, 2025), Icelandair reported their second quarter 2025 financial results for the period ending June 30, 2025. The carrier reported a net profit of $13 million, up $12 million compared to Q2 2024, on a year-over year increase in revenue of `13 percent to $463 million. Icelandair’s Q2 EBIT was negatively impacted by the strengthening of the Icelandic Krona and softer via demand due to the geopolitical environment. The company’s revenue per available seat kilometer (RASK) decreased 2.0 percent compared to the same period last year, while cost per available seat kilometer (CASK) remained unchanged. At June 30, 2025, Icelandair has liquidity totaling $572 million, a company record.
In Thursday’s announcement, Icelandair’s President & CEO, Bogi Nils Bogason, said,
“The second quarter resulted in improved profitability with net profit stronger than last year. The continued focus on efficiency and resilient route network was reflected in outstanding on-time performance, placing us as the most punctual airline among larger European airlines in April and June, which is a testament to our team’s commitment to reliable service. However, the operating results, EBIT, were negatively impacted by softer travel demand in the via market due to the current geopolitical environment and by the strengthening of the Icelandic Krona.
The real exchange rate of the ISK is now near historical high. This level of appreciation has historically proven unsustainable and poses challenges for export-driven sectors. It is therefore critical that economic policy reflects these realities – especially in light of the Icelandic Government’s announced plans to increase taxation on the tourism sector.
In this environment, our continued focus on areas that are in our control, such as strict cost management, operational efficiency, prudent capacity allocation and strengthened revenue generation, is more important than ever. At the end of the second quarter, we had already carried out initiatives that are expected to deliver USD 90 million in annual impact when fully implemented. We continue to turn every stone with the aim of ensuring that all our cost items are competitive. In the third quarter, we will enter into negotiations of our collective bargaining agreements with pilots and cabin crew. I am confident that we will reach the joint goals of all parties to ensure the Company’s long-term competitiveness in our ever-changing dynamic industry and at the same time continue to offer attractive compensation and a great workplace.
Bookings in the third quarter are ahead of last year and we expect profitability to improve year on year in the quarter. Longer-term bookings into the fall and winter continue to be slower than at the same time last year. Looking ahead, we are optimistic as consumers continue to prioritize travel, although they are booking closer to departure. With a more favorable capacity environment to and from Iceland and an ambitious transformation plan well underway, we are well positioned to manage near-term uncertainty, strengthen our market position, and drive long-term value for shareholders, customers, and the Icelandic economy.”
Founded in 1937, Icelandair uses their unique geographical location as a hub midway between Europe and North America, and offers direct flights to over 60 destinations in the UK, Scandinavia, continental Europe, and North America, including four domestic destinations in Iceland and four destinations in Greenland. The carrier also operates an airfreight and logistics business, as well as leasing and consulting services.
Source: Icelandair