Icelandair reported a record third-quarter revenue of 80.5bn ISK and a profit after tax of 11.8bn ISK for Q3 2026, the carrier said, even though an aircraft mechanics’ strike in September caused cancellations and reduced operating profit.
Quarter performance and strike impact
Third-quarter revenue was up 12% year on year. The airline recorded an 84.9% load factor in September, its highest for that month, reflecting stronger travel to and from Iceland and a decline in connecting traffic. Despite the strong headline figures, Icelandair said the September mechanics’ strike reduced operating profit by about 500m ISK.
- Record Q3 revenue: 80.5bn ISK
- Profit after tax in Q3: 11.8bn ISK
- Strike cost to operating profit: about 500m ISK (reported as approximately US$4 million)
- Strike disruption: an 11-hour stoppage on 23 September, resulting in 26 European cancellations, five domestic cancellations and affecting about 5,500 passengers
Outlook and financial caveats
Despite the quarterly profit, Icelandair warned of a weaker finish to the year. The company expects a fourth-quarter loss and forecast a full-year operating loss in a range of 2.5bn ISK to 3.7bn ISK. The airline said underlying third-quarter performance was stronger than the headline numbers suggested but noted headwinds from fuel costs and the appreciation of the króna.
| Item | Figure |
|---|---|
| Q3 revenue | 80.5bn ISK |
| Q3 profit after tax | 11.8bn ISK |
| Estimated strike effect on EBIT | About US$4 million (≈500m ISK) |
| Full-year operating loss forecast | 2.5bn–3.7bn ISK |
The mechanics’ action comprised an 11-hour stoppage on 23 September, which the company reported led to 31 cancellations in total — 26 on European routes and five domestic flights — affecting about 5,500 passengers. Iceland Review reported that the strike was suspended when four weeks of talks began under the State Mediator.
The company’s results presentation quantified the strike’s negative effect on earnings before interest and tax at about US$4 million, which the airline equated to roughly 500m ISK. Icelandair also highlighted that fuel costs and a stronger króna had weighed on results, tempering the headline improvement in passenger revenue and load factor.
Sources cited in the announcement included the Icelandair Group Q3 2026 results and RÚV English.
