Icelandair Group is still expecting a full-year net profit despite the effect of seismic activity on tourism flow to the country.
The operator states that the geological situation has not affected flights at its Reykjavik Keflavik hub.
But Iceland’s meteorological office has been monitoring the area around Grindavik, some 17km southeast of Keflavik airport, where thousands of earth tremors have been detected over the past few weeks.
The office states that seismic activity is decreasing but adds that the likelihood of a volcanic eruption “persists” along the length of a magma intrusion north of Grindavik and close to the Blue Lagoon thermal spa, a popular tourist attraction.
“We are used to dealing with the natural elements and are well-prepared for various different scenarios,” says Icelandair Group chief Bogi Nils Bogason.
“We are in close contact with the authorities and scientists that are closely monitoring the situation.”
The company says near-term inbound tourism booking flow has “slowed significantly”.
“Bookings during the winter months are made close to the date of travel,” it states, adding that tourism is an important revenue stream for November and December.
“The current situation affects revenue generation for the remainder of the year.”
Icelandair Group has declared its previous financial guidance – issued in mid-September – invalid. While the uncertainty means an accurate full-year forecast is “not possible”, it says it still expects a net profit for the year.
