Icelandair has reported a robust performance for March 2025, demonstrating the airline’s continued strength and appeal in the global travel market.
The airline successfully transported a record-breaking 312,000 passengers during the month, marking a significant 5% increase compared to the same period last year.
This impressive growth was achieved alongside a corresponding 5% expansion in capacity, indicating efficient management of resources and a healthy demand for Icelandair’s services.
Icelandair March Performance
Passenger Operations
A detailed breakdown of passenger traffic reveals a balanced network. Thirty-eight percent of passengers traveled to the captivating landscapes of Iceland, highlighting the country’s enduring popularity as a destination.
Eighteen percent originated their journey in Iceland, demonstrating the airline’s crucial role in connecting the island nation with the rest of the world.
A substantial 37% were via passengers, leveraging Icelandair’s strategic hub-and-spoke system connecting North America and Europe. Finally, 7% of passengers traveled within Iceland, underscoring the airline’s importance for domestic connectivity.
Load Factor
The airline also maintained strong operational efficiency. The load factor, a key indicator of how full flights are, stood at an impressive 83.5%.
Furthermore, Icelandair delivered excellent service with an on-time performance of 84%, ensuring a smooth and reliable travel experience for its passengers.
Revenue
While passenger numbers soared, revenue generation in March met management’s expectations. The yield, representing the average revenue per passenger mile, totaled 8.1 US cents.
This figure experienced a year-over-year decrease, primarily attributed to the timing of Easter. In 2024, the Easter holiday fell in March.
This is typically a period of higher travel demand and thus higher yields. The shift of Easter to April in 2025 naturally impacted the March yield comparison.
Charter and Freight Operations
Beyond passenger travel, Icelandair’s other business segments also showed positive momentum. Sold block hours in charter flights witnessed a significant surge of 50%, indicating growing demand for the airline’s charter services.
Additionally, freight measured in Freight Ton Kilometers increased by 3% compared to March last year, highlighting the airline’s contribution to cargo transportation.
In a significant step towards environmental sustainability, Icelandair reported a 3% decrease in CO2 emissions per Operational Ton Kilometer (OTK).
This positive development is attributed to the increasing utilization of the airline’s modern and fuel-efficient B737 MAX and A321 LR aircraft. This commitment to a greener fleet underscores Icelandair’s focus on reducing its environmental footprint.
Iceland CEO Comments
Bogi Nils Bogason, President and CEO of Icelandair, expressed his satisfaction with the March results and provided an optimistic outlook for the future. “We continue seeing strong traffic numbers, with a 5% increase in transported passengers between years, despite last year’s early Easter traffic in March.”
“This highlights that we offer a compelling and competitive product to passengers year-round, including during the seasonally slower winter months. Furthermore, we maintain our strong on-time performance and consistently high load factor.”
Looking ahead to the crucial summer season, Mr. Bogason shared encouraging news regarding booking trends.
“Booking status in the market to Iceland for the summer season is stronger than at the same time last year from all markets – N-America, Europe and beyond. Encouragingly, demand in the market from Iceland also remains considerably stronger than last year.”
“The via market continues to show good demand, but reflecting our strategic emphasis on other markets, the booking volumes are somewhat lower than the previous year.”
“All in all, the booking status is generally stronger for the summer than at the same time last year, but we have noticed a slowdown in longer-term bookings which aligns with increasing global economic uncertainty.”
Icelandair is also actively working to enhance its customer experience and loyalty programs.
“We recently expanded our partnership with JetBlue, allowing their TrueBlue loyalty members to redeem miles for Icelandair flights, which we expect will be a popular option and thus increase demand by JetBlue customers for travel to Iceland.’
“Additionally, we are pleased with the continued strength of our Saga Premium product and the impressive growth of our Saga Club loyalty program, which rapidly approaches the significant milestone of two million members.”
Summary
In summary, Icelandair turned in a strong performance in March 2025. The month was characterized by record passenger numbers, and high operational efficiency.
This presents a positive outlook for the upcoming summer season, positioning the airline well for continued success.
The airline maintained a commitment to sustainability and customer loyalty initiatives; firming its position in the European aviation landscape.
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