Annual and Sustainability Report 2022
Financial position

Financial position

Icelandair Group’s financial position is strong. Assets at year-end amounted to USD 1.4 billion and equity ratio was 19.4%. Total liquidity was USD 318.4 million at year-end, thereof cash and marketable securities USD 266.4 million. Gross capital expenditures totaled USD 314.5 million in 2022.


Balance sheet

Assets up by USD 240 million during the year

Total assets amounted to USD 1.4 billion at the end of 2022, increasing from USD 1.2 billion at the beginning of the year. Operating assets amounted to USD 505.6 million, increasing by USD 114.3 million, due to the addition of three B737 MAX aircraft and overhaul of own aircraft and engines. Right-of-use assets amounted to USD 319.0 million, rising by USD 94.2 million due to lease agreements for four new B737 MAX aircraft and one B767-300 freighter. Cash and marketable securities totaled USD 266.4 million, increasing by USD 3.4 million from the beginning of the year. Proceeds from the issuance of new shares totaled USD 52.4 million.

Equity ratio 19.4%

Total equity amounted to USD 273.4 million at year-end 2022 compared to USD 222.4 million at the beginning of the year. Total comprehensive loss in 2022 amounted to USD 20.1 million. Issuance of new share capital increased equity by USD 52.4 million. Exercised warrants resulted in USD 18.8 million positive impact on equity. The total amount of new shares issued was in the nominal amount of ISK 5,161,815 thousand in 2022. The equity ratio at the end of 2022 was 19.4% and increased from 19% at the beginning of the year.

Overview share capital ISK
Share Capital 1 January 2022 35,958,431,755
Increase of share capital 5,161,815,417
Share Capital 31 December 2022 41,120,247,172
Overview equity USD thousands
Equity 1 January 2022 222,384
Total comprehensive loss -20,145
Shares issued 52,386
Warrants excercised 18,761
Equity 31 December 2022 273,386
USD thousands 2022 2021 2020 2019 2018
Comprehensive loss for the year -20,145 -91,425 -408,814 -34,833 -110,427
Loss for the year -5,819 -104,796 -376,176 -57,779 -55,570
Equity 273,386 222,384 232,809 482,478 471,379
Equity ratio 19% 19% 23% 29% 32%

Aircraft investments increase interest-bearing debt and lease liabilities

Financial liabilities, including interest-bearing loans, borrowings, and lease liabilities, amounted to USD 592.1 million, rising during the year due to aircraft investments. Net financial liabilities amounted to USD 325.7 million and increased by USD 92.7 million compared to the beginning of the year.

Cash flow and investments

USD thousand 2022 2021 Change
Net cash from operating activities 190,619 50,612 140,007
Net cash to/from investing activities -179,041 4,630 -183,671
Net cash from financing activities 9,071 32,814 -23,743
Increase in cash and cash equivalents 20,649 88,056 -67,407
Cash and cash equivalents at 31 December 224,252 204,767 19,485

Cash from operation activities

Investment in operation assets

Strong liquidity position at year-end 2022

Net cash from operating activities totaled USD 190.6 million in 2022. Net cash used in investing activities amounted to USD 179.0 million. Net cash from financing activities amounted to USD 9.1 million, of which issuance of shares amounted to USD 52.4 million and net repayment of borrowings and lease liabilities totaled USD 85.3 million. New loans and borrowings amounted to US 42.0 million related to aircraft investments.

Total liquidity amounted to USD 318.4 million at year-end 2022. Thereof cash and cash equivalents amounted to USD 224.3 million and marketable securities amounted to USD 42.2 million. In addition, the Company had USD 52.0 million in committed undrawn revolving credit facilities.

Net investments in 2022 USD 202.3 million

Investments in operating assets amounted to USD 314.5 million. Thereof was USD 248.9 million used for investments in new aircraft and aircraft spare parts. Total engine overhaul totaled USD 46.9 million.

Sale of assets totaled USD 112.2 million, mainly due to the sale-leaseback of two new MAX aircraft in the first quarter. Other investments amounted to USD 18.7 million.

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