The Icelandic airline Icelandair is scrapping its year-round guided tours – partly due to the volcanic eruptions that have hit the island, which has reduced demand for travel.

This is stated in a press release. 

In early April, Icelandair guided for an EBIT ratio in the range of 2-4 percent. 

”"This guidance is no longer valid," it now states.

The airline states that there remains uncertainty about how the market will develop, not least due to the volcanic eruptions on the Reykjanes Peninsula. 

”"As demand for travel to Iceland has weakened, Icelandair has used the flexibility of its route network to increase focus on the non-European market, but returns have weakened somewhat there," it further states.

The airline also states that they are moving forward with measures to strengthen the company.

”One of these measures is to reduce the number of employees in various departments of the company,” it says.

Source: Nyhetsbyrån Direkt