Icelandair optimistic after strong full year

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Icelandair Group is predicting full-year EBITDA of $145-150 million for 2014, after achieving a 31% rise last year to $143 million.

Full-year revenues were up by nearly 14% to $1 billion. Pre-tax profits rose 24% to $71 million, and net profit increased to $56 million.

The company says its performance for 2013 was "good" and "considerably better" than its budget had forecast.

Passenger numbers rose by 12% on a 16% hike in capacity.

"Last year was characterised by profitable organic growth, which is in line with our strategy," says Icelandair Group chief Bjorgolfur Johannsson.

Icelandair Group benefited from increased tourism to Iceland, but says it still faces increasing competition.

"In addition our contracts with some of our classes of employees have expired, which creates some uncertainty," Johannsson admits. "Nevertheless, the company's business model has proven sound, our finances are solid and our cash position is strong."