Transported approximately 3.7 million travelers in the recent year

Transported approximately 3.7 million travelers in the recent year

Icelandair, the country's flag carrier, has released its performance report for December 2022, revealing a mixed bag of results.

The airline saw an increase in passenger numbers on its domestic flights, with 20,000 passengers in December 2022, up from 19,000 in the same month the previous year. This growth was not mirrored in the airline's international flights, where the number of passengers remained relatively stable.

However, the on-time performance of Icelandair's international flights in December 2022 was 62.4%, a decrease from the 67% reported in late 2022/early 2023. This dip was primarily attributed to disruptions in the airline's route network caused by challenging operational conditions. These disruptions included flight cancellations and delays linked to labor issues, government investigations, and internal company actions following these events.

Despite these challenges, Icelandair's domestic flights performed better, with an on-time performance of 81%. This impressive figure was achieved despite significant weather disruptions and the closure of Reykjanesbraut, a major road in Iceland, which had an impact on the airline's punctuality, seat usage, and flight schedule.

The load factor on Icelandair's international flights in December 2022 was 73%, an increase from 70% in December 2021. However, the load factor on domestic flights was not provided. Freight measured in Freight Ton Kilometers on Icelandair's domestic flights was around the same as in December 2021.

Sold block hours in Icelandair's charter flights increased by 13% in December 2022, indicating a growing demand for the airline's charter services.

In terms of capacity, Icelandair's capacity reached 91% of the 2019 level in December 2022, a significant improvement from the 53% reached in January 2022 and the 77% reached in June 2022.

Overall, while Icelandair faced numerous challenges in December 2022, its domestic operations performed admirably. The international flights, however, were impacted by a combination of labor disruptions, regulatory attention, and internal operational challenges, leading to a decrease in on-time performance and load factors.

[1] Icelandair's 2022 Q4 and Full Year Report (accessible at www.icelandair.is/investors) [4] Icelandair's 2022 Q3 Earnings Release (accessible at www.icelandair.is/investors)

1. The fluctuations in the weather during December 2022 significantly affected Icelandair's domestic flights, yet they managed to maintain a high on-time performance of 81%.
2. The growth in demand for charter flights was evident, as sold block hours on Icelandair's charter flights increased by 13% in December 2022.
3. In the finance industry, Icelandair's capacity in December 2022 reached 91% of the 2019 level, demonstrating a steady recovery despite the various operational challenges faced in the aviation and transportation sectors.

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