The COVID-19 outbreak has significantly affected the demand for international travel. As travel restrictions have been implemented around the world,
In the last few weeks,
- 92% of employees move to part-time employment temporarily. Most of these employees will fall under the new legislation by the Icelandic government of salary contribution. These measures limit the number of layoffs and positively impact the Company’s cash flow in the short-term contrary to permanent termination of employment where notice periods would be paid.
- The employment of around 240 employees will be terminated. These layoffs affect most divisions within the Company. The total number of
Icelandair Group employees (FTEs) was on average 4,715 in 2019. - A temporary 20% salary reduction applies to all employees that remain in full-time employment. Executive Management salaries are being reduced by 25% and the salary of the CEO and Board of Directors by 30%.
All these measures will increase the flexibility of
“We are living in unprecedented times where a global pandemic has significantly impacted international travel. Our priority is to secure robust operations of
The Company has overcome many challenges in its over 80-year history, be it the forces of nature, economic downturns or other external factors. We have always managed to get through such unexpected events with unity, resourcefulness and the unique spirit of the
Further information:
Investors: Íris Hulda Þórisdóttir, Director Investor Relations, iris@icelandairgroup.is
Media: Ásdís Ýr Pétursdóttir,
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