The 2017 revenue of Wow Air added up to $486 million (USD), which is approximately 52 billion. This represents 58 percent increase from the previous year. EBITDA was about $4 million (USD), as opposed to the $46 million amounted in 2016.
In 2017, the operating loss (EBIT) added up to $13.5 million, as opposed to $30 million (USD) profit earned in 2016. The estimated loss after deduction of income tax amounted to $22 million (USD) in 2017, as opposed to a $35.5 million profit earned in the previous year. The total amount of the loss was around 2.4billion Icelandic Krona as indicated in the WOW air report.
In addition, the amount of kilometers was stated by seat, had an 80 percent increase and goes beyond 69 percent during the same year.
According to report, in 2017, it was completely defined by high costs of investment and growth. In addition to other things, staff of WOW air has multiplied significantly, they are presently 1500 as opposed to 1100 in July of 2017.
Over the last 6 months of 2018, there is a 29 percent increase of the amount of kilometers by seat from this particular period in 2017, alongside the increase in the number of passenger to about 31 percent, the majority of the transatlantic passengers presently representing around 55 percent of the total sum of passengers. Over the last 6 months of the year, there is a 37 percent increase in the revenue of the organization as indicated in the report. It states that the seat occupancy is around 91 percent this year.
Skuli Mogensen CEO of WOW air said:
According to Skuli Mogensen, the founder and CEO of WOW air, said last year in the report that a disappointment occur due to high cost of investment and growth, but he was glad with the results of the market share and structure.
“There is a significant growth in WOW air and investment in the past few years, but even with these investments, we continually make sure the long-term prospects of the company are maintained. In 2015 and 2016, we recorded good results, but 2017 results were disappointing as the cost of growth and investment was higher than intended. External issues have been proven difficult for the organization; these include inflated prices of oil, costly operating environment in Iceland and solid competition in major markets. For 2018, there is extensive reconstruction, and we are satisfied with the market share that the organization has acquired and from across the Atlantic and Iceland in this extremely short time. This is a very solid foundation for building after some time and reinforcing the pillars of the organization further than we are investigating numerous interesting outcomes concerning the long-term financing of the organization.”
