Icelandair reported a full‑year loss for 2025 despite a strong fourth quarter, citing a weaker US dollar versus the Icelandic krona that squeezed margins and amplified domestic wage pressures. Management is pursuing new collective agreements and cost measures and expects to return to profitability in 2026.
Discovered |
Briefing
Icelandair's 2025 deficit was driven by currency exposure and rising wage pressures; management expects a turnaround to profitability in 2026, signalling key near‑term financial targets for partners and creditors.
The carrier is prioritising collective bargaining and cost measures to repair the full‑year loss after earlier headcount reductions — see prior coverage of recent Icelandair staffing cuts (source:506db9eb-8fe0-4383-917a-9075de13bfd1).
Labour outcomes will shape capacity, unit costs and operational resilience, mirroring how recent crew agreements have altered other carriers' cost trajectories (source:f3317037-6424-4621-8aa9-92b7994484b3).
Reported By
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(FR) 2025 Financial Results: A Mixed Year for Icelandair • air-cosmos.com
Icelandair presents its 2025 financial results • aeromorning.com
(FR) Icelandair presents its 2025 financial results • aeromorning.com
FlightGlobal
• Lewis Harper