Icelandair Group reported record 2025 revenue of USD 1.7bn (up 11pc) and over 5m passengers carried, yet finished with a USD 17.2m negative EBIT due to currency depreciation (USD 43.7m impact) and wage inflation. Q4 2025 saw a 17pc revenue increase and improved profitability, though full-year results fell short of expectations, resulting in a net loss of USD 9.5m. Passenger numbers were a record 5m.
Significant negative impact from a weakening USD (USD 43.7m loss) and unsustainable wage developments in Iceland.
The 83.9pc on-time performance (OTP) ranks among the best in Europe. Transformation initiatives are expected to deliver over USD 100m in annual impact, with management targeting profitability for 2026. The airline reported strong liquidity of USD 457.8m at year-end.
The company reported that for the full year 2025, they achieved record passenger revenue of $1.5bn
