The cost-cutting and reorganisation work at the Icelandair Group HQ continues at pace with the latest development seeing the group's regional division, Air Iceland Connect, cut many routes including those to the UK.
Air Iceland Connect is a relatively small operation with a fleet of 3 Bombardier Q400s turboprops and 3 of the smaller Dash 8-200s aircraft which are used on both domestic and regional routes. The company says it has been challenging to operate in the regional market and has had to cut routes for efficiency reasons as the group struggles to make ends meet and stem losses.
It has withdrawn services to its UK destinations of Aberdeen and Belfast, cut some domestic Q400 services and may drop its flights to the Faroe Islands.
Air Iceland Connect will now be used mainly for domestic flights and those to neighbouring Greenland and the group advises there will be further work to integrate Air Iceland Connect more fully into the main operation of Icelandair.
Meanwhile, the group has been busy buying back a number of its shares in a bid to stop the share price from falling further and prevent further dilution of the company.
