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On November 4, airline company Icelandair laid off 38 employees, Vísir reports. The majority were employed at the company’s office, Vísir’s sources claim. 

Despite its competitor Fly Play announcing bankruptcy in late September, Icelandair’s business has suffered strain in recent months. Its profit in the third quarter reached seven billion ISK, compared to 8.5 billion ISK at the same time last year. 

Ahead of the fourth quarter, the company had issued a profit warning, noting that costs in the upcoming quarter were higher than expected. 

In a press announcement, Icelandair spokespeople said the actions were part of the firm’s streamlining efforts with the goal of performance improvement.

CEO of Icelandair Bogi Nils Ágústsson announced at the Icelandic Stock Exchange that the company’s operations would be adapted to the changed circumstances, namely with fewer airplanes and the phasing out of Boeing 767 models by the end of 2026.