olivlawolivlaw

olivLaw · European equity research

Icelandair Group hf. ICEAIR.IC

Iceland · Nasdaq Iceland · ISIN IS0000013464 · Vertical: Listed companies from Iceland

0.68ISK−0.29% · 1 dayClose 05 Nov 2026

Icelandair Group runs an international airline with a route network built around Keflavík, plus ground handling, maintenance, cargo and charter operations. Total operating income for fiscal 2025 was about 1.74 billion USD, and pressures from carbon costs and ongoing union negotiations keep the business under close watch.

At the close of 05 Nov 2026, Icelandair Group hf. (ICEAIR.IC) stock was 0.68 ISK (−0.29% on the day), with beta 0.69, 52-week range 0.62–0.96 ISK.

Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.

Market cap
unavailable
shares as of 31 Dec 2025
P/E (TTM)
unavailable
Diluted EPS TTM -0.02 · TTM to 31 Dec 2025
E/P (TTM)
unavailable
TTM to 31 Dec 2025
Dividend yield
unavailable
Beta (2y)
0.69
Volatility (1y) 41%
52-week range
0.620.96

Price history

Loading chart…

Technical reading

RSI (14)
54.8
neutral
Bollinger (20, 2)
0.64 – 0.69
in the upper half of the band · %B 0.78 · band width 8.1%
SMA 50 / 200
0.67 / 0.74
mixed trend
MACD (12, 26, 9)
0.00 / -0.00
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyEURO STOXX 50vs EURO STOXX 50Vertical median
1 month+2.1%+0.4%+1.7 pp—
3 months−11.7%−3.3%−8.4 pp—
6 months−14.6%+4.0%−18.5 pp—
Year to date−23.3%+8.1%−31.4 pp—
1 year−15.0%+10.7%−25.7 pp−7.8%
3 years−50.0%+50.1%−100.1 pp+13.1%
5 years−60.0%+43.6%−103.6 pp—
Max drawdown (1y)
−34.7%
09 Jan 2026 → 16 Sept 2026
Max drawdown (5y)
−72.8%
16 Feb 2022 → 16 Sept 2026
Compound annual growth (5y)
−16.7%
EURO STOXX 50 +7.5%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

the price (USD) and the reports are in different currencies

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year202320242025
Revenueunavailableunavailableunavailable
Revenue YoYunavailableunavailableunavailable
Net income10.7 m-20.6 m-9.3 m
Net income YoYunavailable−291.7%unavailable
Diluted EPS0.00-0.05-0.02
Diluted EPS YoYunavailable−16,766.7%unavailable
net %unavailableunavailableunavailable
Free cash flow81.3 m110.7 m202.2 m

Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
195.5 m USD
Financial debt
177.4 m USD
Net debt
-18.1 m USD
Equity
286.4 m USD
Total assets
1.9 bn USD
Debt / equity
0.62x
Current ratio
0.69x
ROE
-3.4%
ROA
-0.5%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Income statement · USD

Operating income
2023
21.0 m
2024
-14.2 m
2025
-17.2 m

esef· 17 Feb 2026verified

Depreciation & amortisation
2023
135.5 m
2024
154.1 m
2025
173.8 m

esef· 17 Feb 2026verified

EBITDA
2023
156.5 m ≈
2024
139.9 m ≈
2025
156.6 m ≈

esef· 17 Feb 2026derived

Interest expense
2023
41.0 m
2024
42.8 m
2025
48.4 m

esef· 17 Feb 2026verified

Pre-tax income
2023
7.8 m
2024
-24.8 m
2025
-20.4 m

esef· 17 Feb 2026verified

Income tax
2023
-3.4 m
2024
-4.6 m
2025
-10.8 m

esef· 17 Feb 2026verified

Net income
2023
10.7 m
2024
-20.6 m
2025
-9.3 m

esef· 17 Feb 2026verified

Diluted EPS
2023
0.00
2024
-0.05
2025
-0.02

esef· 17 Feb 2026verified

Balance sheet · USD

Cash
2023
199.5 m
2024
150.2 m
2025
195.5 m

esef· 17 Feb 2026verified

Receivables
2023
161.9 m
2024
178.7 m
2025
178.8 m

esef· 17 Feb 2026verified

Inventories
2023
23.8 m
2024
24.5 m
2025
28.1 m

esef· 17 Feb 2026verified

Current assets
2023
457.1 m
2024
462.4 m
2025
576.8 m

esef· 17 Feb 2026verified

Property, plant & equipment, net
2023
555.1 m
2024
559.9 m
2025
563.5 m

esef· 17 Feb 2026verified

Total assets
2023
1.5 bn
2024
1.7 bn
2025
1.9 bn

esef· 17 Feb 2026verified

Accounts payable
2023
222.4 m
2024
260.1 m
2025
318.7 m

esef· 17 Feb 2026verified

Short-term debt
2023
44.9 m
2024
41.0 m
2025
39.1 m

esef· 17 Feb 2026verified

Long-term debt
2023
207.4 m
2024
164.7 m
2025
138.2 m

esef· 17 Feb 2026verified

Current liabilities
2023
645.8 m
2024
724.6 m
2025
830.7 m

esef· 17 Feb 2026verified

Total liabilities
2023
1.2 bn
2024
1.4 bn
2025
1.6 bn

esef· 17 Feb 2026verified

Equity
2023
288.3 m
2024
269.1 m
2025
286.4 m

esef· 17 Feb 2026verified

Shares outstanding at year end
2023
—
2024
411.2 m
2025
466.5 m

esef· 17 Feb 2026derived

Cash flow · USD

Operating cash flow
2023
215.1 m
2024
221.2 m
2025
305.0 m

esef· 17 Feb 2026verified

Capex
2023
133.8 m
2024
110.5 m
2025
102.8 m

esef· 17 Feb 2026verified

Free cash flow
2023
81.3 m ≈
2024
110.7 m ≈
2025
202.2 m ≈

esef· 17 Feb 2026derived

Investing cash flow
2023
-183.7 m
2024
-164.8 m
2025
-177.8 m

esef· 17 Feb 2026verified

Financing cash flow
2023
-56.6 m
2024
-105.4 m
2025
-105.7 m

esef· 17 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
unavailable
input data missing
Revenue CAGR 3Y
unavailable
input data missing
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
input data missing
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
82.7%
computed by olivLawFY 2025

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
unavailable
input data missing
FCF margin
unavailable
input data missing

Returns

ROE
-3.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROA
-0.5%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROIC
-4.9%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
ROCE
-1.7%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-18.1 m USD
computed by olivLawbalance sheet at 31 Dec 2025
Net debt / EBITDA
-0.1x
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Debt / equity
0.6x
computed by olivLawbalance sheet at 31 Dec 2025
Interest coverage
-0.4x
computed by olivLawFY 2025

Liquidity

Current ratio
0.7x
computed by olivLawbalance sheet at 31 Dec 2025
Quick ratio
0.7x
computed by olivLawbalance sheet at 31 Dec 2025
Cash ratio
0.2x
computed by olivLawbalance sheet at 31 Dec 2025

Cash

Operating cash flow
305.0 m USD
computed by olivLawFY 2025
Capital expenditure
102.8 m USD
computed by olivLawFY 2025
Free cash flow
202.2 m USD
computed by olivLawFY 2025
FCF conversion
unavailable
insufficient data
Cash conversion
194.8%
computed by olivLawFY 2025

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
unavailable
input data missing
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
input data missing
P/E (TTM)
unavailable
input data missing
Earnings yield
unavailable
input data missing
P/B
unavailable
input data missing
P/S
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
input data missing
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 4 of at least 6
  • score weight coverage: 31.2% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

0.68 ISK

05 Nov 2026Source: olivLaw, closing series

Market cap: unavailable

Price and reporting are in different currencies; market indicators are unavailable.

Key indicators

Market capitalisation
unavailable
input data missing
P/E (TTM)
unavailable
input data missing
P/B
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
ROE
-3.4%
computed by olivLawFY 2025 · balance sheet at 31 Dec 2025
Net margin
unavailable
input data missing
Revenue growth (YoY)
unavailable
input data missing
Dividend yield
unavailable
input data missing

Coverage and freshness

26/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 31 Dec 2025
Latest balance sheet date: 31 Dec 2025
Share count (cover of the latest filing), as of: 31 Dec 2025
Source: esefpublished 17 Feb 2026
verified 79derived 2

Score by group

31% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 31.2% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Quality-4.9%0 (vs peers)33%
Net margin · Qualityunavailableunavailable—
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growthunavailableunavailable—
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet-0.1x100 (on a fixed band)33%
Interest coverage · Balance sheet-0.4x0 (on a fixed band)20%
Current ratio · Balance sheet0.7x0 (on a fixed band)13%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet50/100 · 3/3 factors with a value
  • Growth· partialunavailable · 0/2 factors with a value
  • Quality· partial0/100 · 1/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partialunavailable · 0/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Icelandair Group hf. (ICEAIR.IC). Latest full fiscal year: 2025; data up to 2025-12-31.

Figures computed from the financial statements: ROE -3.4%; net debt/EBITDA -0.1x.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 31.2% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net debt / EBITDA: -0.1x

What contradicts it

  • ROIC: -4.9%
  • Interest coverage: -0.4x
  • Current ratio: 0.7x

Not assessed (insufficient data or a ratio without meaning): Net margin, FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Listed companies from Iceland · same country · compared with 11 companies

Multiples and returns vs the median

P/E
—
vertical median 17.3x
EV/EBITDA
—
vertical median —
P/S
—
vertical median 0.9x
P/B
—
vertical median 2.1x
ROE
-3.4%
vertical median 10.2%
below median (−133.1%)
Net margin
—
vertical median 6.0%
EBIT margin
—
vertical median 11.2%
Revenue YoY
—
vertical median 7.7%
Net debt/EBITDA
-0.1x
vertical median —
Dividend yield
—
vertical median 1.4%

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
HAGA.ICHagar hf.133.6 bn20.518.2%3.8%+9.3%+8% / +83%
FESTI.ICFesti hf.90.9 bn22.810.1%2.6%+13.4%−8% / +67%
HEIMAR.ICHeimar hf.61.3 bn7.513.5%55.5%+7.7%−6% / +49%
BERA.ICÖlgerðin Egill Skallagríms hf.37.1 bn17.313.7%5.9%+7.7%−24% / +0%
NOVA.ICNova Klúbburinn hf12.0 bn14.88.5%6.1%+2.8%−26% / −16%
ALVO.ICAlvotech———9.0%+43.4%−14% / −58%
ASAR.ICSíminn hf.—17.4——+3.0%−19% / +27%
BRIM.ICBrim hf.——11.9%14.6%+5.2%+19% / +13%
EIK.ICEik Fasteignafélag Hf.——10.2%43.6%+9.5%+1% / +23%
EIM.ICEimskipafélag Íslands hf.——3.2%1.2%−4.7%+6% / −35%
HAMP.ICHampiðjan hf——1.7%1.2%+15.7%−26% / −37%

1- and 3-year price returns: for ICEAIR.IC from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Scenarios are not available. input data missing

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Icelandair Group runs an international airline with a route network built around Keflavík, plus ground handling, maintenance, cargo and charter operations. Total operating income for fiscal 2025 was about 1.74 billion USD, and pressures from carbon costs and ongoing union negotiations keep the business under close watch.

SWOT

Strengths

  • The group has an integrated network combining passenger transport with handling, maintenance and cargo, which diversifies income sources.
  • The company has shown flexibility and resilience in earlier crises when facing short and medium-term demand shocks.
  • Liquidity management practices and committed credit lines support its ability to get through difficult periods.

Weaknesses

  • Revenue is in US dollars while a significant part of costs is in krona, which exposes the group to currency swings.
  • Most employees are unionised, and collective agreements came up for renewal with no new deals reached by year-end 2025.
  • Dependence on a single hub, Keflavík, leaves the group exposed to local disruptions such as seismic activity or capacity cuts.

Opportunities

  • If SAF and cleaner fuel technologies develop, the group could reduce its emissions costs over the longer term.
  • Reduced competitor capacity at Keflavík could support fares and aircraft utilisation on the main routes.
  • Expansion in cargo and maintenance services could add income that is steadier than passenger transport.

Threats

  • A reduction in free ETS allowances could expose the company to higher and more volatile carbon certificate costs.
  • Low-cost competition and aggressive fare cuts could compress margins on most routes.
  • Geopolitical events, trade tariffs and oil price swings could affect both demand and costs.

Risks

  • Macroeconomic and competition riskhigh

    An economic slowdown or lower consumer spending could reduce demand for flights. Strong competition limits the ability to hold fares, and without a competitive product revenue targets could be missed.

  • Safety and security riskhigh

    The loss or grounding of an aircraft, through an accident or malfunction, would bring direct losses and damage customer confidence. External events such as armed conflicts or natural disasters could disrupt schedules.

  • Regulatory and environmental riskhigh

    Fuel taxes, emissions obligations and the phase-out of free ETS allowances could raise operating costs. Non-compliance with regulations can lead to fines and penalties.

  • Labour market riskmedium

    Collective agreements for cabin crew, pilots and aircraft mechanics were still under negotiation at year-end 2025. Strikes could disrupt flight operations.

  • Technical and reputational riskmedium

    Failures in IT systems or disruptions to the flight network could affect operations and reputation. Greater focus on sustainability makes social and environmental perception more important.

Investment thesis

What would need to be true (bull case)

  • Resilience shown in earlier crises and an integrated network with handling, maintenance and cargo could support revenue even when passenger demand weakens.
  • Reduced capacity at Keflavík after Play ceased operations could support fares on the group's main market.
  • If sustainable fuel technologies become more accessible, emissions costs could ease, particularly after 2026.

What would break the thesis

  • The phase-out of free ETS allowances could make carbon costs higher and more volatile, which could weigh on margins.
  • Swings between the US dollar and the Icelandic krona could compress margins, since salaries are paid in krona.
  • Renegotiating collective agreements without settled deals could lead to strikes and schedule disruptions.

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

The Icelandair Group is an international airline based in Iceland that builds its network around its Keflavík hub. Besides passenger transport, the group runs ground handling, maintenance, cargo and charter operations. The group's functional currency is the US dollar, while salaries are paid in Icelandic krona, so the krona's level matters a great deal for costs. Shares trade on Nasdaq Iceland's Regulated Market.

Segments

Passenger revenue

Passenger revenue, which includes leasing and ancillary revenue, makes up the largest part of the business. The annual report splits it into passenger, ancillary and leasing revenue.

Other operating revenue

Other operating revenue includes airport sales, tourism revenue, aircraft handling, cargo and gains on the sale of operating assets. These lines complement passenger revenue and diversify income sources.

Maintenance and cargo operations

The group also runs aircraft maintenance and cargo operations, which the report lists separately from passenger transport. These lines are less visible in the headline figures but contribute to the operating base.

Market context

The markets the group serves are sensitive to broad macroeconomic conditions, inflation, interest rates and exchange rates. The report shows that in 2025 financial market volatility, linked to tariff changes announced by the US government, affected the EUR/USD and USD/ISK rates. Competition between airlines is intense, and prices are strongly influenced by fare discounting.

The sector is also under pressure from environmental rules such as jet fuel taxes, SAF mandates and the European ETS, whose free allocation is being phased out. The report notes that 2026 could be the last year with any free allowances, which could raise the cost of buying certificates.

Trends

  • Phase-out of free ETS allowancesheadwind

    Free carbon allowances are shrinking, and the report indicates that 2026 could be the last year with any. If certificate costs rise, operating margins could be affected.

  • Reduced capacity at Keflavíkmixed

    Capacity to and from Keflavík airport was slightly corrected in 2025, notably after Play ceased operations in late September. This correction could support fares but may also reduce passenger volumes.

  • CORSIA and SAF requirementsheadwind

    CORSIA has moved into its compliance phase, with first credit procurement expected in 2026. SAF obligations add costs but may also open opportunities for cleaner technologies.

  • Currency volatilitymixed

    Revenue is in US dollars while salaries are in Icelandic krona. A stronger krona could compress margins, while dollar volatility against other currencies can influence demand and results.

Competitive position

Competition in aviation is high, and low-cost carriers can enter new routes or cut fares. The report also points to mergers, acquisitions and partnerships as factors shaping competition. If the group does not offer a competitive product, it risks missing its revenue and profit targets.

  • European low-cost carriers

    The report cites entry by low-cost airlines as a factor pressuring fares, without naming them.

  • Play airline

    The end of Play's operations in late September 2025 changed the capacity picture on the Keflavík route network.

  • Transatlantic airlines

    The report links competition to the North American routes, where flights face different CORSIA rules than intra-EU flights.

  • Other Northern European carriers

    Regional competitors can influence fares and market share on routes passing through European hubs.

News & filings

Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.