Icelandair Group, the owner and holding company of Icelandair, announced the sale of its subsidiary Iceland Travel. The group aims to focus more on the main company business ‒ flight operations.

“During the sales process, the objective will be to maximize the value of the company, while at the same time preserving the interests of Icelandic tourism, the company’s employees, and other stakeholders,“ read the Icelandair Group statement released on January 19, 2021.

Meanwhile, despite the global pandemic and economic uncertainty, the company’s subsidiary Icelandair seems to be able to maintain a minimum service and sales until 2022. The airline has strengthened its financial position with a 90% state-backed guarantee on a credit line of up to $120 million (ISK16.5 billion), which was provided to Icelandair in September 2020.

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The owner of the WOW Air brand, US entrepreneur Michelle Ballarin, intends to purchase a 25% stake in Icelandair. The entrepreneur has signed up for $51.2 million (ISK 7 billion) in Icelandair shares. The move fuelled speculation that two airlines might be merged in the future.
 

Icelandair expects to operate only a minimum amount of flights until the middle of 2021 and hopes for a gradual increase in passenger demand after that date. However, the airline expects to reach the pre-pandemic operational levels by 2024.