The Group's current focus is to preserve cash but at the same time taking actions to remain prepared for efficient ramp-up as soon as markets recover. Icelandair’s international passenger network will continue to be operated at a minimum level in the coming weeks with the focus being to serve core destinations in Europe and North America. The current assumption is that a modest ramp-up will begin in Q2 2021.

Near-term outlook remains challenging

The near-term outlook for the operations of Icelandair Group remains challenging. Icelandair’s flight schedule for 2021 is subject to the situation regarding COVID-19 having improved in the Company’s markets, and current travel restrictions being eased. The route network has been simplified to strengthen Icelandair’s flexibility to respond quickly to the fast-changing market conditions and align capacity to demand at any given time. The focus is on Icelandair’s key markets to and from Iceland as well as providing convenient connections between Europe and North America.

Good outlook for the freight operation

The freight operation of Icelandair Group has been less affected than its passenger services and the outlook for the coming months is good. The company will continue to focus on freight transport in cargo aircraft, until the capacity in the route network has somewhat recovered. Other Group businesses are expected to continue to operate at minimum levels in the coming weeks.

Flexible booking policies introduced

Icelandair has introduced new flexible booking policies that allow customers to book a flight with confidence in these uncertain times. The aim is to meet customers’ needs during the current conditions in the world, providing flexible service and travel experience.

Solution to issue travel credit vouchers

Chat bot, which lightened the load on our service center

Automated refunds to shorten the refund process considerably

New policies to make bookings and changes easier

The return to service of the Boeing 737 MAX

After completing the most thorough global inspection process in aviation history, major aviation authorities around the world have recertified the Boeing 737 MAX as safe to fly, after almost two years on the ground. Specific steps are taken before returning each aircraft to passenger service in line with authorities’ requirements. These include software updates and various other maintenance tasks, extensive pilot training and test flights. The Boeing 737 MAX aircraft will serve in Icelandair's route network from early March 2021, following all necessary updates and training where safety is a priority. The aircraft is both cost-effective and more environmentally friendly than the Company's current fleet, providing additional operational flexibility during the ramp-up, as well as supporting the future development of its route network.


Divestment of Iceland Travel

The Board of Icelandair Group has resolved to initiate a process to sell Iceland Travel, a subsidiary of the Group. The decision is in line with the Group’s strategy to focus on its core business, aviation and related services. The objective of the sales process is to maximize the value of the company, while guarding the interests of the Icelandic tourism sector, the company’s employees and other stakeholders.

Post-COVID outlook

Current market research across Icelandair’s key markets indicates that Iceland will continue to be an attractive tourist destination post-COVID. The country’s small population, spaciousness and untouched nature are seen as positive attributes in wake of the pandemic. In addition, changes in the global competitive landscape are likely to rationalize capacity across the North Atlantic, creating opportunities for Icelandair’s business model, both to and from Iceland and by connecting Europe and North America. Furthermore, the industry is seeing considerable opportunities for cargo transport post-COVID. Icelandair Group intends to place further focus on its cargo operations going forward to seize possible opportunities and further develop Iceland as an important hub for cargo transport between Europe and North America.