Icelandair posts $1.1m profits in first half

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Icelandair earned a profit of $1.1 million in the first half of 2012, compared with a loss of $5.8 million for the corresponding period last year.

Its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the six months to 30 June amounted to $25.8 million, up from $15.4 million posted last year due to higher revenues, the airline says.

Passenger revenues grew by 27% year-on-year for the first half, while operating income increased by 17% to $392 million.

Aircraft fuel expenses grew by 26% to $96.8 million, while aircraft maintenance costs fell by 9% year-on year to $24.7 million.

For the second quarter of 2012, the aircraft posted a profit of $14.3 million, up from $3.3 million earned in the corresponding quarter last year.

EBITDA for the quarter amounted to $28.8 million, up from $17 million reported in the second quarter of 2011. The airline attributed this growth to higher revenues, including a 24% rise in passenger revenues.

Aircraft fuel costs for the quarter were up by 21% year-on-year to $58.7 million, while aircraft maintenance costs slid by 17% to $12.5 million.

Icelandair's operating income for the three months grew by 15% to $234 million.

Passenger numbers for the quarter increased by 18% on international routes and by 3% on regional routes.

For the full year 2012, Icelandair forecasts its EBITDA to grow to $110-115 million.