Icelandair downgrades income expectations

Icelandair has reduced its EBITDA forecast from $140-$145 million to $138-$143 million for the year, following May’s industrial action by flight crew. The revised forecast assumes an average €/$ cross rate of 1.35, and an average fuel price of $1,000 per ton for the remainder of 2014. The direct effect of the strike action is estimated to be $3.5 million. The strike resulted in the cancellation of 26 flights. Icelandair stated: “Although this is not the case now, the company believes that it is necessary, under the circumstances, to publish an updated EBITDA forecast now that the results for May