newstodate.aero

Apr 24, 2024 (newstodate): After serious issues with the performance of its cargo operations, Icelandair now confirms a turn for the better.
   In the Icelandair Group's A1/2024 report on the financial situation, out today on Nasdaq, optimism for the cargo operations have returned.
   -Following a difficult year in the Cargo operations in 2023 various actions, including capacity adjustments, have restored profitability of the segment. Measures included leasing out one of two freighter aircraft, adjusting the cargo flight schedule to market conditions, and organizational changes. The Leasing operation performed well and is gradually expanding, the report says.
    The positive signs were already discernible in the Group's report on 2023:
   -The carrier did see its cargo volumes up by seven percent, y-o-y, through 2023, but the profitability obviously fell short of expectations; however, improved results in cargo were seen following diverse improvement measures, and in Q4/2023 cargo volumes did rise by 13 percent, while the results were still below Q4/2022, the report said.
   -The ongoing turnaround in the cargo business is now generating some optimism; a positive EBIT is expected for cargo operations in 2024; one of the company's two Boeing 767 freighters have been leased by the Uzbek carrier FlyKhiva for a full year; further improvements are driven by an optimized flight schedule and adjusted network, and Icelandair cargo will have an increased focus on core products, driving higher unit revenues, the report says.
   In November 2023, Icelandair appointed Einar Mar Gudmundsson as new Icelandair Cargo CEO, tasked with the responsibility for actions to return the company to profitability by adjusting capacity to demands in the market. 

   And so far he seems to have succeeded in his endeavors...