- Record revenue in 2025 of USD 1.7 billion, up by 11% with a 17% increase in Q4
- EBIT in 2025 was negative at USD 17.2 million, down by USD 3 million, but improving by USD 2.0 million in Q4
- EBIT for the year was impacted by a significant change in the operating environment, including a negative currency impact of USD 43.7 million due to the weakening of the USD
- Net loss decreased in 2025, totaling USD 9.5 million compared to USD 20.2 million in 2024
- Unit revenue improvement of 2% for the full year, up 5% in Q4
- Record high load factor and for the first time, more than 5 million passengers carried in 2025
- Icelandair one of the most punctual airlines in Europe in 2025, with an OTP of 83.9%
- Strong liquidity position of USD 457.8 million at year-end, up USD 111.0 million year-on-year
- Transformation initiatives implemented by the end of 2025 are expected to deliver over USD 100 million in annual impact
Bogi Nils Bogason, President & CEO
"The fourth quarter was strong in many ways, but the financial results for the year were not in line with our expectations at the beginning of the year. We are, however, on the right track and in 2025 we generated record revenue, transported more than five million passengers for the first time in our history, and the load factor was at a record high. Furthermore, we delivered outstanding on-time performance, placing us among the most punctual airlines in Europe, and contributed to good customer experience. We also generated record Saga Premium revenues and significantly strengthened our position as the leading hub carrier at Keflavík airport. We continued to drive operational efficiencies with improved productivity and carried out initiatives under our transformation program that are expected to deliver over USD 100 million in annual impact when fully implemented. In addition, profitability in our cargo and leasing businesses improved year on year.
Significant changes in our external environment over the past year, however, negatively impacted our bottom line. Geopolitical developments led to a depreciation of the US dollar, which negatively impacted our profit margins, affected the demand to Iceland from North America, our biggest market, and had a negative impact on revenue generation in the transatlantic market. In addition, the unsustainable contractual wage development in Iceland in recent years has significantly outpaced that in our neighboring countries, which remains challenging for export companies that have most of their revenues in foreign currencies. On top of that, carbon emission costs more than doubled between years.
We are addressing these challenges head on and will continue to make the necessary changes to improve our performance across the company. One of the most important projects is the negotiations of new collective bargaining agreements with pilots, cabin crew, and mechanics that are currently ongoing. The focus of the negotiations is to ensure the competitiveness of Icelandair, such as with increased operational flexibility, as well as continue to secure attractive jobs in aviation in Iceland. At the same time, the Icelandic government must ensure the competitiveness of Iceland with a predictable operating environment, and by defending Iceland's interests within the EU regulatory environment. Strong air connectivity is a key infrastructure that supports economic growth, tourism, exports, and foreign investment, especially for an island nation where other transportation options are limited. Icelandair plays a key role in connecting the country and our tax footprint was USD 322 million
We have an exciting year ahead, with continued growth of our route network and compelling new destinations. With our clear operational focus and further transformation initiatives already in the pipeline, we are in a strong position to turn a profit this year and build a stronger Icelandair for the future - it is truly time for Icelandair's shareholders to reap the rewards after having stood by the company for many years. Finally, I want to thank our employees for their resilience and exceptional work during the year and our customers for choosing Icelandair."
Investor presentation 6 February 2026
An investor presentation will be webcast in relation to the publication of Q4 and 12M results 2025 at 8:30 GMT on Friday, 6 February 2026, at https://icelandairgroup.com. Bogi Nils Bogason, President & CEO of Icelandair, and Ivar S. Kristinsson, CFO, will present the company's results and answer questions. The presentation will take place in English and will be accessible after the meeting on the company's website and under Corporate News on the Nasdaq Nordic website:
http://www.nasdaqomxnordic.com/news/companynews
Information
Investors: Íris Hulda Þórisdóttir, Head of Investor Relations. E-mail: iris@icelandair.is
Media: Ásdís Pétursdóttir, Director of Communications. E-mail: asdis@icelandair.is
Financial calendar
- AGM, 12 March 2026
- Q1 2026, 28 April 2026
- Q2 2026, 21 July 2026
- Q3 2026, 22 October 2026
- Q4 2026 Results and Consolidated Financial Statement 2026, 4 February 2027
Contact information
Investors: Íris Hulda Þórisdóttir, Head of Investor Relations. E-mail:?iris@icelandair.is
Media: Asdis Petursdottir, Director Communications. E-mail:?asdis@icelandair.is
