The preliminary financial results of the second quarter of 2020 indicate that Icelandair group’s revenues dropped by 85% in the second quarter of 2020 compared to Q2 of 2019, highlighting the dire state of the industry.
Detailed financial statement will be published on July 27, 2020, yet the release of preliminary results describes a drop of revenues to $60 million and amount of earnings before interest and taxes (EBIT) as negative $100-110 million.
According to the company, it took swift actions to minimize operational expenses and cash outflow as the pandemic began, a move which included 2000 job cuts. The group was struggling even before the COVID-19 outbreak, its finances damaged by the grounding of Boeing 737 MAX. Sporadic layoffs have followed the company ever since.