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Icelandair Reports Record Revenue and Profit in Q3 2023

Icelandair demonstrates by record revenue, substantial profit growth, and international recognition

Icelandair Boeing 757 wearing the “Vatnajökull” livery on short final to Seattle-Tacoma (Photo: AirlineGeeks | Joey Gerardi)

Icelandair, Iceland’s national airline, based at Keflavík International Airport near the capital Reykjavík, has announced exceptional financial results for the third quarter of 2023, reporting a record revenue of USD $560 million. This impressive performance contributed to a substantial 46% increase in profit, totaling $26.6 million, marking a significant milestone for the airline. In addition to this remarkable financial achievement, the company received two prestigious international customer awards (APEX 2024 five-star major airline and best European airline at the Danish travel awards), further solidifying its reputation as a top-tier airline in the global aviation industry.

The key driver behind Icelandair’s success in Q3 2023 was a substantial increase in the number of passengers on the market to Iceland, a growth attributed to several contributing factors. Icelandair transported 1.5 million passengers during the third quarter, 7% more than last year.

One of the primary factors fueling Icelandair’s success in Q3 was the robust demand for travel from North America to Iceland. Iceland’s geographical location is convenient for one-stop transatlantic flights, a pillar of the airline’s business strategy, along with traffic to and from the country.

The airline experienced a 16% increase in passengers, with a significant portion of these travelers originating from North America. This heightened interest in Icelandic destinations helped boost passenger numbers and contributed to the overall revenue growth. As of 2021, Icelandair operates three aircraft with “special” liveries, one of which highlights the Northern Lights, also being part of Icelandair’s #IcelandStopover campaign.

An Icelandair Boeing 737 MAX.
(Photo: AirlineGeeks)

Icelandair strategically expanded its route network, achieving approximately 10% growth in 2024. Adding new destinations and improved connectivity increased the appeal of Icelandair’s services, attracting more passengers to choose the airline for their travel needs.

The company also invested in enhancing its products and partner connectivity. These efforts aimed to provide passengers with a superior travel experience and to increase the attractiveness of Icelandair’s services.

In addition to the remarkable increase in profit and passenger numbers, several other financial highlights were noted. Icelandair saw an improvement in EBIT by $19 million. The company also bolstered its liquid funds and achieved growth in key traffic figures, including Available Seat Kilometers (ASK), Revenue Passenger Kilometers (RPK), and load factor.

The equity of Icelandair Group amounted to $337 million, with an equity ratio of 21% at the end of the period, compared to 19% at the beginning of the year. This indicates a solid equity base and financial stability. The liquidity position of the company remained robust, although the specific amount of cash and marketable securities was not provided.

The leasing operation performed well, improving financial performance in consecutive years despite similar revenue. The outlook is optimistic, with an expected profitable organic growth in 2024.

Vincenzo Claudio Piscopo
Latest posts by Vincenzo Claudio Piscopo (see all)


  • Vincenzo Claudio Piscopo

    Vincenzo graduated in 2019 in Mechanical Engineering with an aeronautical curriculum, focusing his thesis on Human Factors in aircraft maintenance. In 2022 he pursued his master's degree in Aerospace Engineering at the University of Palermo, Italy. He combines his journalistic activities with his work as a Reliability Engineer at Zetalab.

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