LONDON – Icelandair has announced that they have soothed the troubling economic waters and have started this year (2022) on a positive note and that they have survived the pandemic and its economic impacts.

The airline was given a $120 million credit facility by the Icelandic government and state-run banks; Íslandsbanki and Landsbankinn, in September 2020. They have performed so smoothly that they could pay back the loan 7 months before the due date.

Bogi Nils Bogason, Chief executive and President of Icelandair stated:

“It is gratifying to announce our termination of the government-backed facility almost eight months ahead of schedule and without ever having had to draw on it.”

The facility was a key component in the successful financial restructuring which was made possible through the coordinated efforts of all “major stakeholders.”

He continues, “As the aviation industry moves closer to normal operations, I am confident we have what it takes to reach our primary objective coming out of the pandemic – to return to sustainable operating results.”

Icelandair Group stated on 7 February,

“The credit facility was vital to complete the financial restructuring, enabling the company to maintain valuable know-how and preserve the infrastructure necessary for an efficient ramp-up of its operations post-Covid.”

The traffic data released by Icelandair shows that they have accommodated 113,000 passengers during January.

With the average load factor being at 60% in January 2022, compared to 39% in January last year, the airline has booked a significant recovery, but still nowhere near enough compared to 2019.

Due to the less severe effects of the Omicron variant experienced by passengers, the company has noticed a growth in the number of bookings for the months ahead.