Three companies form the Travel and Tourism part of the Group. They are Iceland Travel, a tour operator and travel agency in incoming tourism, Icelandair Hotels, which markets and operates two hotel chains, Icelandair Hotels and Edda Hotels, and Air Iceland a scheduled domestic carrier which also offers regular flights to Greenland and the Faeroe Islands.
Even though these companies all provide strategic support to the International Scheduled Operations their main focus is on profitable operations. In 2007 the Travel and Tourism segment had a generally succesful operation. We saw improved utilization and tight cost control at Icelandair Hotels and a postive outcome for the year. Higher passenger revenue at Air Iceland due to more demand and traffic outweighed higher employee and fuel cost. Implementation of new information systems led to higher cost than planned at Iceland Travel and strong ISK led to lower profits from services than expected.
The total turnover of these companies in 2007 was
ISK 9.3 billion and their EBITDA was ISK 1.1 billion