Isavia Interim Financial Statements 30 June 2021
The consolidated accounts for the Isavia group before financial items and taxes (EBIT) for the first half of 2021 were negative by ISK 5.1 billion, compared to a deficit of ISK 5.3 billion in the same period a year ago. The impact of the COVID-19 pandemic was still keenly felt in the operations of the company in the first half of this year, as revenue declined by ISK 2.3 billion, or 27% compared to the corresponding period a year earlier. Comparing the first half of 2019 to the first half of 2021, the decline in revenue was 65% for the consolidated group and 83% for the parent company alone, which operates Keflavík Airport. Compared to the first half of 2020, 76% fewer passengers passed through Keflavík Airport than in the same period this year. Comparing the first halves of 2019 and 2021, the decline is 93%.
Extensive rationalisation measures have been resorted to in order to meet the decline in revenue, whereas at the same time, emphasis has been placed upon maintaining the basic operations of the company and its infrastructure in light of their importance for the future of the Icelandic economy.
The total result for the period was negative by ISK 3.5 billion, compared to a deficit of ISK 7.6 billion in the corresponding period a year earlier. This turnaround may be attributed to the positive exchange rate effect upon long-term loans in foreign currencies.
Sveinbjörn Indriðason, the CEO of Isavia, observed “that the impact of the COVID-19 pandemic on the operations of airports and air traffic control is still keenly felt. The recovery at Keflavík Airport has progressed more slowly than we expected. It is evident that the number of passengers in the most recent months of this year has been lower than we anticipated and is directly attributable to the stringent health restrictions of the public authorities at Iceland’s boarders. The airlines have reduced their supply, and those airlines we expected to fly to Iceland over the winter months have been reduced in number and may be reduced further still. This is a source of great concern, as we should be working to assist the recovery instead of hindering it.”
In spite of the uncertainty this winter, Isavia has embarked upon new construction in Keflavík Airport in accordance with the company’s investment plan. “The decision to increase the share capital of Isavia earlier this year made it possible for us to start construction at Keflavík Airport and thereby continue to strengthen the recovery of the travel industry. Further construction, especially of Keflavík Airport as a hub, will support the increase in the number of airline stopovers, one of the key prerequisites of Iceland’s quality of life,” says Sveinbjörn.
Key figures from the first-half accounts of Isavia in 2021
- Revenue: ISK 6,281 million
- Deficit before financial items and taxes: ISK 5,129 million
- Total result after taxes: ISK -3,514 million
- Cash in hand: ISK 7,381 million
- Investment in durable assets: ISK 1,863 million
- Equity capital, end of period: ISK 26,744 million
- Equity ratio: 33.0%