newstodate.aero
Aug 28, 2018 (newstodate): The Icelandair Group on August 7, 2018, announced the immediate resignation of the Group President and CEO, Bjorgolfur Johannsson.
As an interim solution, Bogi Nils Bogason, currently serving as the Company's CFO, will act as Interim President & CEO of the Company pending the assignment of a future new President & CEO.
The unexpected changing of the guards comes as a result of an updated forecast for 2018 stating that results will be worse than projected.
-The updated forecast is mainly based on the fact that the Companys revenue will be lower than anticipated. There are primarily two reasons for the lowered revenue forecast; First, we still expected rising average fares during the final months of the years, in the updated EBITDA forecast published on July 8th, due to cost increases of airlines. Now, we expect the rising of average fares to occur later, that is not until in 2019.
-Secondly, the structural changes at the Companys sales and marketing department, which were made in the summer of 2017, have not been implemented well enough and changes in the Companys route network have resulted in an imbalance between Europe flights and North America flights. Due to this, our revenue forecasts, which are among other things based on historical development, have not been providing accurate results and thus the current revenue forecast has been lowered, says Bjorgolfur Johannsson in the Group's release.
-The decisions described above were made during my shift and it is clear that they have had negative financial impact on the Company this year. As the President & CEO of the Company, I am responsible towards the Board of Directors and the Shareholders.
-Earlier today, I submitted my letter of resignation to the Board of Directors, says Mr Johannsson.
As an interim solution, Bogi Nils Bogason, currently serving as the Company's CFO, will act as Interim President & CEO of the Company pending the assignment of a future new President & CEO.
The unexpected changing of the guards comes as a result of an updated forecast for 2018 stating that results will be worse than projected.
-The updated forecast is mainly based on the fact that the Companys revenue will be lower than anticipated. There are primarily two reasons for the lowered revenue forecast; First, we still expected rising average fares during the final months of the years, in the updated EBITDA forecast published on July 8th, due to cost increases of airlines. Now, we expect the rising of average fares to occur later, that is not until in 2019.
-Secondly, the structural changes at the Companys sales and marketing department, which were made in the summer of 2017, have not been implemented well enough and changes in the Companys route network have resulted in an imbalance between Europe flights and North America flights. Due to this, our revenue forecasts, which are among other things based on historical development, have not been providing accurate results and thus the current revenue forecast has been lowered, says Bjorgolfur Johannsson in the Group's release.
-The decisions described above were made during my shift and it is clear that they have had negative financial impact on the Company this year. As the President & CEO of the Company, I am responsible towards the Board of Directors and the Shareholders.
-Earlier today, I submitted my letter of resignation to the Board of Directors, says Mr Johannsson.