Financial position

Icelandair Group’s financial position is strong. Assets at year-end amounted to USD 1,172.6 million and equity ratio was 19%. Gross capital expenditures totaled USD 184.1 million in 2021. Total liquidity was USD 435.0 million at year-end, thereof cash and marketable securities USD 263.0 million.

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Balance sheet

Balance sheet increasing to USD 1,172.6 million

Total assets amounted to USD 1,172.6 million at year-end, increasing by USD 137.3 million, or 13% from the beginning of the year. Operating assets amounted to USD 391.3 million decreasing by USD 107.1 million due to depreciation and sale of assets. Right-of-use of assets amounted to USD 224.8 million, increasing by USD 105.0 million due to sale-leaseback of three new MAX aircraft, a spare engine and one B767 aircraft. Cash and marketable securities including assets held for sale totaled USD 263.0 million, increasing by USD 103.6 million from the beginning of the year. Proceeds from the issuance of new shares totaled USD 80.2 million.

Equity ratio 19%

Total equity amounted to USD 222.4 million at year-end 2021 compared to USD 232.8 million at the beginning of the year. Total comprehensive loss in 2021 amounted to USD 91.4 million. Issuance of new share capital increased equity by USD 80.2 million, with a sale of new equity to Bain Capital and the exercise of warrants by existing shareholders. The total amount of new shares issued was in the nominal amount of ISK 7,520,771 thousand in 2021. The net impact of warrants exercised and issued resulted in a USD 0.8 million positive impact on equity.

Equity ratio at the end of 2021 was 19% compared to 23% at the beginning of the year. When excluding the temporary balance sheet effects of warrants, the equity ratio was 21% at year-end 2021.

Overview share capital ISK
Share Capital 1 January 2021 28,437,660,653
Increase of share capital 7,520,771,102
Share Capital 31 December 2021 35,958,431,755
Overview equity USD thousands
Equity 1 January 2021 232,809
Total comprehensive loss -91,425
Shares issued 80,205
Warrants issued -3,300
Warrants excercised 4,095
Equity 31 December 2021 222,384
USD thousands 2021 2020 2019 2018 2017
Comprehensive income -91,425 -408,814 -34,833 -110,427 48,477
(Loss) Profit for the year -104,796 -376,176 -57,779 -55,570 37,538
Equity 222,384 232,809 482,478 471,379 596,545
Equity Ratio 19% 23% 29% 32% 42%

Net financial liabilities decreased in 2021

Net financial liabilities amounted to USD 233.0 million and decreased by USD 5.2 million compared to the beginning of the year. Total financial liabilities amounted to USD 495.9 million and increased during the year due to sale and leaseback of three MAX aircraft and one spare engine.

Interest-bearing and net interest bearing debt

Cash Flow and Investments

USD thousand 2021 2020 Change
Net cash from operating activities 50,612 -193,219 243,831
Net cash to investing activities 4,630 -2,279 6,909
Net cash to/from financing activities 32,814 79,659 -46,485
Increase / decrease in cash and cash equivalents 88,056 -115,839 203,895
Cash and cash equivalents at 31 December 204,767 117,657 87,110

Cash from operation activities

Investment in operation assets

Liquidity position up by USD 104 million in 2021

Net cash from operating activities totaled USD 50.6 million in 2021. Net cash from investing activities amounted to USD 4.6 million. Net cash from financing activities amounted to USD 32.8 million, of which issuance of shares amounted to USD 80.2 million and net repayment of borrowings and lease liabilities totaled USD 47.4 million.

Total liquidity amounted to USD 263.0 million at year-end 2021. Thereof cash and cash equivalents amounted to USD 204.8 million and marketable securities amounted to USD 58.2 million. In addition, the Company had USD 172.0 million in committed undrawn revolving facilities, whereof USD 120 million were in the form of a credit line 90% guaranteed by the Icelandic government.

Gross investments in 2021 USD 184.1 million

Investments in operating assets amounted to USD 184.1 million. Thereof was USD 151.5 million used for investments in new aircraft and aircraft spare parts. Total engine overhaul for own and leased aircraft totaled USD 31.2 million. Sale of assets totaled USD 197.0 million, thereof to sale-leaseback of three new MAX aircraft, a spare engine and one B767 aircraft. Other investments amounted to USD 1.4 million.