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CEO's comment
The total income of the Company increased by approximately 16% between years, which exceeds the capacity increase of the period. Although the Company’s loss amounted to ISK 1.8 billion, the loss was reduced by almost 50% from the preceding year. Loss from continuing operation of the Group amounted to ISK 1.5 billion, EBITDA was 178 million and EBITDAR 2.2 billion. At the end of the quarter, the Company’s net cash position is quite satisfactory, as the Group has approximately ISK four billion in cash, an increase of ISK 2.1 billion from the start of the year. The Group’s equity stands at ISK 13 billion in the first quarter of the year and the equity ratio is 14% and budget projections assume a significant strengthening of the equity ratio following the ongoing financial restructuring, which is now in its final stages. It is clear that the Group suffered a setback owing to the restrictions on airline traffic during the eruption in Eyjafjallajökull. The Company’s staff responded swiftly to the restrictions, and I can confidently assert that few companies in the world responded to the changed circumstances as resolutely as we did last month. Nevertheless, the Company suffered some loss of income, and in addition there were considerable expenses as well. The negative impact on operations has not been calculated, but it can be estimated in the range of 1.0 to 1.5 billion. However, it should be borne in mind that demand increased significantly in the first quarter, and ahead of us are the best months of the year in airline operations and tourist services. We are determined to take advantage of the extensive attention that has been focused on Iceland for the benefit of Icelandic tourist services as a whole.”
