Transported Over 3.7 Million Passengers During the Previous Year
Icelandair Experiences 150% Passenger Increase in a Year, Yet Fails to Reach 2019 Capacity Levels
Iceland's national airline, Icelandair, transported 3.7 million passengers in the past year, marking a significant 150% increase from the previous year's 1.5 million. However, the airline's capacity has yet to reach the same levels as just before the COVID-19 pandemic. In December 2022, the capacity reached 91% of the 2019 capacity, compared to 53% in January 2022 and 77% in June. Specifically, December saw 233,500 passengers, a surge from the 168,500 recorded in December 2021.
Weather Disruptions and Road Closure Affect Operations
Weather disruptions and the closure of Reykjanesbraut, a key road connecting Reykjavik to Keflavik International Airport, had a significant impact on Icelandair's punctuality, seat usage, and flight schedule in December. The on-time performance for international flights was 62.4%, and the load factor stood at 73%, slightly higher than the 71% recorded in December 2021. Weather disruptions in Iceland during the month played a significant role in affecting these metrics.
Domestic Flights See Modest Increase
In the domestic sector, Icelandair carried 20,000 passengers in December, compared to 19,000 in the same month the previous year. Despite significant weather disruptions, the on-time performance for domestic flights was 81%, with a load factor of 73%, slightly higher than the 70% recorded in December 2021. In addition, the charter flights saw a 13% increase in sold block hours. The freight measured in Freight Ton Kilometers remained approximately the same as in December 2021.
Implication of Summer Travel Trends, Airport Expansion, and Operational Adjustments
As global travel trends continued to rebound in 2022, it is likely that increased demand for flights contributed to Icelandair's growth. However, this is a broader trend and not specific to Icelandair's December operations. Additionally, the expansion of Keflavik International Airport began in 2022, but its immediate impact on December 2022 operations would have been minimal as significant construction phases were just starting. Icelandair may have made operational adjustments to optimize their seasonal demand during the winter season.
In conclusion, while weather disruptions and the closure of Reykjanesbraut significantly affected Icelandair's December operations, the airline managed to transport more passengers than in previous years. The ongoing expansion of Keflavik International Airport signals long-term plans to improve capacity, though its immediate effect on December 2022 operations would have been limited.
The surge in travel demand, as a result of global rebounding trends, likely played a role in Icelandair's passenger increase in December 2022. Although the expansion of Keflavik International Airport started in 2022, it didn't significantly impact the airline's operations during December. The aviation industry, including Icelandair, may have implemented operational adjustments to suit the winter season's demand. The finance sector is closely watching Icelandair's growth trajectory, as the airline aims to reach the 2019 capacity levels amid continued weather challenges and transportation disruptions.
