Icelandair CEO resigns following low 2018 earnings
Björgólfur Jóhannsson, CEO of Icelandair Group since 2008, announced his resignation on August 27, 2018, following the publication of a low forecast for 2018 earnings.
In its most recent estimation, Icelandair Group expects its EBITDA to be in the range of $80 million to $100 million for 2018, which is 5 to 8% lower than what was previously expected. Originally, the company expected to increase its fare prices by 2018. “We now believe that these increases will occur later, not until 2019,” is noted in an official statement by the group.
The failure of new marketing and sales policy in 2017 as well as routes changes that led to an “imbalance between the distribution of flights to Europe on one hand and North America, on the other” are some of the reasons pointed at for the disappointing earnings, leading to Jóhannsson resignation.
“Although the issues mentioned have now been addressed, it is a matter of responsibility that the mentioned changes in the company were not carried out well enough and because the problems that were created were not handled quickly enough”, said Jóhannsson.
Bogi Nils Bogason, current CFO of Icelandair Group will become the interim CEO while the board selects a new one.
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