Icelandair has hailed 2022 as a “great turnaround year” as it signalled a return to profit following the pandemic.
Full year earnings of $19 million were achieved against a loss of $136 million in 2021.
Total passenger carryings rose to 3.7 million across 51 destinations as the flight schedule doubled year-on-year.
However, pre-Christmas weather disruption in Iceland negatively affected results in the final quarter of the year.
The carrier recovered in January to report record sales as it entered the new year with a good outlook in all markets.
The airline expects to conclude discussions with Boeing and Airbus over future fleet renewal plans in the first half of 2023.
A 40-strong fleet of Boeing 757s, 767s and 737 Max aircraft will be deployed this summer, five more than last year, with two more 737s being added before the end of the year.
The network is being expanded to reach 54 destinations with projected carryings of 4.4 million passengers.
Chief executive Bogi Nils Bagason said: “The year 2022 was characterised by a great turnaround of our business.
“Strong revenue generation with record passenger revenue in the second half of the year and significant EBIT [earnings] improvement shows that our business model has proven its worth yet again.
“We are back on track, stronger than ever and ready to operate the largest flight schedule, in terms of frequency and destinations, in the history of Icelandair.
“Our strategy and actions throughout the pandemic ensured we were prepared to rapidly increase capacity to meet the steep increase in demand in all our markets.
“In 2022, we doubled our flight schedule and transported 3.7 million passengers to 51 destinations.
“As the aviation industry as a whole, we experienced external operational challenges that affected the summer peak, in addition to severe weather conditions towards the end of the year.
“We were, however, in a good position to respond to these challenges and reduce the impact on our customers due to our extensive flight schedule, frequency of flights and the resourcefulness of our employees.”
He added: “The successful ramp-up of our operations following the pandemic has been crucial for the recovery of Icelandic tourism and economy.
“In 2022, we brought around 740,000 tourists to Iceland and recruited around 1,000 employees.
“Our operating environment will remain challenging this year with inflation and increased salary cost.
“We are, however, confident that people will continue to prioritise travel and there will be great opportunities for Iceland as a destination as we see reflected in our near-term booking flow.”