Good morning and welcome to Icelandair' s presentations of the Q2 results. I'm Bogi Nils Bogason, CEO of Icelandair, and with me here is our CFO, Ívar S. Kristinsson. We will begin with the presentation and follow up by the Q&A session. Please send us your questions to ir@icelandair.is. Here on this slide, we see a snapshot of our performance in Q2. Passenger revenue reached a record $393 million. Cash flow from operations was very strong, 7% higher than last year. Net profit rose to $13 million, while EBIT was negatively affected by currency fluctuations and softer demand with yield pressure on the transatlantic market. Cargo and leasing segments continued to perform very well, and on-time performance was 87.2%. We were rated the most punctual airline in Europe in April and June by Cirium, and thanks to our great team for excellent work there. We maintained a very strong balance sheet with a record liquidity of $572 million at the end of quarter two. Ívar, over to you for more details on the financials. Thank you, Bogi. Let's start with some summary of the traffic statistics. In the quarter, we had a 13% year-over-year increase in the passenger network capacity, measured in available seat kilometers. This growth was supported by the early launch of the second connection bank in Keflavík in early April, coinciding with the timing of Easter compared to starting the bank in mid-May last year. That initiative aligns with our strategy to expand operation beyond the peak season, which is kind of facilitated by the continued addition of a more cost-efficient fleet, which has enabled new opportunities. New routes were launched to Nashville and Gothenburg, alongside increased frequencies to several high or larger markets. Passenger traffic measured in RPKs rose by 14%. Passenger numbers, total passengers increasing to 1.4 million from 1.2 million in the previous year, and the load factor improved 82.1% this year compared to 81.6% last year. During the quarter, 35% of passengers were traveling to Iceland, 17% from, and 44% were connecting passengers. 4% were traveling domestically. There was a particularly strong growth in the to and from market segments, where passenger numbers increased 22%. This shift resulted in a more favorable passenger mix and positively influenced the overall yield development, partially offset by the transatlantic market, as Bogi mentioned. Almost 20% of our passengers or connecting passengers take advantage of the stopover program that we offer, and by doing that, positively contribute to the tourism here in Iceland. Finally, our CO2 emissions per OTK decreased 4%, reflecting an increase in flights operated on the fuel-efficient 737 MAX aircraft and the 321LRs, as well as a higher load factor. As Bogi mentioned, the financial results for the second quarter show a net profit of $12.9 million, which is $12 million higher than in the same period last year. EBIT was negatively impacted by the strengthening of the Icelandic króna, the ISK, and lower yields on the transatlantic routes, as is visible in the results for the route network segment. Meanwhile, the cargo and the leasing segment reported improved outcomes. I will provide a little bit further details regarding the FX impact on the P&L later, but first, let's reflect on some of the financial figures. Operating income was $463 million, up 13% compared to the previous year. Passenger revenue reached $393 million, up 11%, marking a record for the quarter. Growth was seen across all markets, with the most significant increase observed in the market to Iceland. Cargo revenue, $19 million, up 13%, mainly due to strong development in imports into Iceland. Leasing revenue, $30 million, up 46% compared to last year, while other income stood at $20 million, a 9% increase. For the operating expenses, the OpEx excluding depreciation were $419 million, up 13%. Salaries and related costs increased by 16% to $124 million, which was influenced by the stronger ISK and contractual wage increases. Aircraft fuel, $96 million, down 1% compared to last year, despite the 13% increase in the route network capacity. That was attributed to lower fuel prices, as well as more flying on or the fleet renewal with more fuel-efficient fleet. All that was partially offset by the cost of fuel hedges in the quarter. Average fuel cost was $807 per ton, reducing 14%. Other aviation expenses were $94 million, increasing by 28%, primarily from higher production, the fleet renewal, and the inflation in many cost items. Other operating expenses, $105 million, up 14% due to more business operation and the stronger króna. Depreciation and amortization were $43 million, up from $37 million last year, on greater or more production and higher depreciation of owned and leased aircraft assets as the fleet is renewed. Finance income, + $5 million, $7 million better than last year, and that was driven by the FX gains on funds in Icelandic króna, appreciating against the dollar. As a result, earnings before taxes, $6 million, net profit $12 million, both reflecting year-on-year increase due to improved profitability and the effect of the stronger króna on deferred taxes on the balance sheet. Here we are highlighting the key factors driving the EBIT change between the quarter and the same last year. As can be seen, when we eliminate the impact of the currency movement, then a comparable EBIT is improving, showing here by $10 million year-on-year, among other things due to the positive impact of more production and the transformation program. As we see, both labor costs as well as other efficiency improvements positively impacting the results. As I mentioned, we also continue to see quite an inflation in some cost categories, such as airport and navigation fees, as well as in some maintenance cost categories. The impact or the FX impact of the strengthening of the ISK is around $12.6 million on the EBIT, and that is net of currency hedges for the quarter. As mentioned in the previous slide, the appreciation of the króna led to a negative effect of $12.6 million on the EBIT. However, when we kind of look at this through the bottom line, through the entire P&L, the impact is +$2.6 million, and that is due to the impact on the finance costs and the tax provisions. The positive impact on finance income comes from a significant cash balance in króna, which gained value as the currency strengthens, value in U.S. dollars, that is. While currency shift posed challenges on the operating profit, those kind of strategic cash holdings helped to mitigate the net earnings impact. Additionally, the tax liability was affected due to deferred tax assets, which are denominated in króna, which fluctuate with the currency movements as well. Here we see kind of highlighting a key development in the operational efficiency on the labor cost. As despite a 13% increase in the production, the number of FTEs remained largely unchanged compared to last year. The majority of our costs or salary cost is in króna, and the stronger króna against the dollar had around a 10% impact on the salary cost this quarter. Again, the impact partly offset by currency hedges that we have in place. Shifting a little bit to unit revenues, as we have mentioned, the overall decrease or the overall development was a decrease by 2% year-over-year on 13% production increase. That was driven by the low yields on the transatlantic market. The weakness was to some extent offset by our focus on the to and from markets, which improved the overall passenger mix. In addition, kind of notable information or figures is that the premium revenue outpaced economy revenue, premium rising 15% compared to 10% of the economy. You can see there also that the other revenue bucket was slightly lower year-on-year. Those revenues include regular accounting adjustments, and we do see fluctuations in those items, both downwards and upwards from one quarter to the next. Cargo and leasing performing well. Production in those segments grew quite significantly in the quarter. Block hours in leasing increasing by 43%. That is both attributable to current and kind of developing contracts. Freight carried or freight in the cargo system grew 10%. Cargo segment continued to show improvements in EBIT performance. We have seen that in recent quarters. The leasing business maintained a robust 18% EBIT margin on a 37% revenue increase. Cash flow strong. Cash and marketable securities $480 million at the quarter end, up $63 million from the start. Net cash from operation $118 million, with $47 million used in investing activities, thereof around $19 million in net CapEx. Financing activities $28 million. That is repayment of loans and lease liability. With on-trunk credit lines of $92 million, our liquid funds at the end of the quarter reached $572 million by the end of June. Finally, on the balance sheet, total assets around $2.1 billion end of June, increasing from the beginning of the year due to the continued fleet renewal in the passenger network. That included additional 321LRs that we added this spring, as well as due to the seasonal build-up of bookings for the summer. Cash and marketable securities growing significantly. That is also reflected on the deferred income on the liability side, which grew $180 million for the first half year. Total equity $283 million at the end of June. Equity ratio 14% compared to 13% last year. The equity is positively impacted by that strengthening of the króna. As visible in the total comprehensive income, due to currency translation differences, as well as positive position of open cash and fuel hedges, some of those items will flow through the P&L in the coming quarters if the FX will be on a similar level as of now. With that, over to you, Bogi, for the business update. Thank you, Ívar. First, a brief snapshot of our markets as we see them now. First, the to market demand still remains strong on that market, despite the high real exchange rate of the Icelandic króna. From market, we are seeing a record strength in outbound travel. Our market share on those markets, the to and from Iceland, continues to grow, and that is just reflecting our focus on these segments. As we've been saying, the transatlantic market remains soft, primarily due to the geopolitical situation, which is affecting transit travel and putting some pressure on yields there. Our domestic market here in Iceland remains stable and continues to contribute positively to our whole profitability. As we've been saying, both cargo and leasing segments continue and have been performing very well, with strong performance and a promising outlook for the remainder of the year. Looking at the first six months of the year, cargo returned a 7% EBIT margin, building on last year's turnaround, and expectations there remain positive for the remainder of the year. The leasing operations Loftleiðir delivered an impressive EBIT margin of nearly 19% during the same period, the first half. All major projects there are performing well, supported by expanded fleet and their lease. The outlook for the second half there is also quite strong. Together, these segments, Loftleiðir and Icelandair Cargo, play a vital role in diversifying our revenue streams and our overall financial stability. Ívar went through how the strength of the Icelandic króna has been impacting our operations in recent months. Over the past year, the króna has appreciated considerably. At the same time, domestic inflation remains more persistent than in many other markets. Together, these factors have driven the real exchange rate to near historical highs. In the past, such situation has proven unsustainable and is now posing challenges for export sectors, and tourism is there included. It is therefore very critical that the economic policy reflects this situation, especially when we consider the government's announced intention to raise taxes on the tourism sector. As we've been highlighting, we are currently facing pressure on yields in the transatlantic market alongside the strong Icelandic króna. We have seen a scenario like this before, and we have a clear playbook to navigate through a situation like this. In fact, the slide here is taken from a presentation that we had when we were raising equity in 2020. When the króna is strong and the transatlantic market is soft, growth is not our priority. Instead, we take a targeted approach to capacity restraint. Our focus shifts to the to and from markets. At the same time, we actively seek new profitable niches. This approach has proven effective in past cycles, in recent decades, and is still the framework that we use for our decision-making. If you look at how we are navigating through the current environment, firstly, we are not expanding during the high season. Instead, the growth is concentrated in the shoulder seasons and the off-seasons, with the same number of aircraft and employees as last year, which improves efficiency and helps driving down unit cost. Secondly, our emphasis is on the to and from markets, as the 22% growth in Q2 shows. Thirdly, we are identifying and capitalizing on high-potential routes. Nashville and Gothenburg, which we started this year, are good examples of that. Our new and efficient fleet enables winter expansions to destinations like Miami, Málaga, and Edinburgh. In Istanbul, we're going to start Istanbul in September, and there we are leveraging our partnership with Turkish Airlines and addressing strong demand to visit Iceland from Asia. Finally, looking ahead to summer 2026, planning is already underway. If current conditions persist, we will not grow during the high season. We have the flexibility, if needed, to reduce capacity by retiring more 757s, which have low ownership costs. Conversely, if the condition improves, changes, we can extend the life of selected 757s to support further growth. At the same time, we remain laser-focused on what we can control, continuously strengthening the company. Our fleet modernization is well underway. The introduction of Airbus 321LR has been a great success, and its performance alongside the Boeing 737 has been excellent. These aircraft unlock significant opportunities for expanding and developing our route network. Our team has done an outstanding job in improving our network efficiency. This is clearly reflected in our end on-time performance, and that not only reduces cost, but also enhances the customer experience. We continue to invest in improved processes, systems, and equipment across the operations. At the same time, we continue to strengthen our commercial foundations, where the Icelandair brand remains very robust. Saga Premium is in high demand and plays a key role in driving unit revenue. Our Saga Loyalty Club, by far the largest loyalty program in Iceland, is essential for customer retention. In Q2, we expanded our airline partnership, signing a new agreement with Air India, and extending our collaboration with both Southwest and Turkish Airlines. In our transformation journey, we are leaving no stone unturned. At the end of the quarter, we have already carried out 170 initiatives that are expected to deliver $90 million in annual impact when fully implemented, with further gains anticipated in the years ahead. Looking at the capacity here to and from Iceland, as history and global airline data consistently show, having two hub-and-spoke carriers operating from the same small or medium-sized airport or hub is not a sustainable model. However, this has been the reality at Airport for the past few years, but that is now changing. Starting this fall, Icelandair will be the only hub-and-spoke carrier in Keflavík. In quarter three, our capacity in Keflavík remains flat, while the total market capacity is down by 5%. In Q4, other carriers are reducing their capacity by 11%, while we are selectively stepping in where we see long-term profitable opportunities. Despite this, total market capacity will be down by 4% in quarter four. This transition to a more rational capacity situation will strengthen our position and allow us to optimize our network and resources in line with the market and the demand. To the financial guidance for the year and next quarters, for the full year, we anticipate EBIT to be at break-even. We anticipate EBIT to be at break-even for the full year. Bookings for the peak summer period are ahead of last year, reflecting strong demand. However, yield pressure continues on economy fares in the transatlantic market. Despite this, EBIT profitability is expected to improve year-on-year in quarter three. While the bookings are slower into quarter four, yield improvements are forecasted in both the to and transatlantic market, and EBIT is expected to be in line with last year's EBIT profitability. Our guidance assumes a strong ISK throughout the year, with the USD/ISK exchange rate of 123. If the króna had remained at last year's average level throughout this year, our EBIT guidance would be approximately $50 million higher, assuming all other factors remain unchanged. In summary, what we have been saying here today, me and Ívar, in Q2, Icelandair delivered a net profit of $13 million, with a very strong cash flow from operations and record liquidity at the end of the quarter. At the same time, EBIT was impacted by foreign currency fluctuations and softer demand on the transatlantic market. After several years of an unsustainable competitive environment in Keflavík, with two hub-and-spoke carriers, the landscape is now shifting from the fall and onwards. Even though the competition will continue to be fierce, with over 20 airlines flying to and from Iceland, this development strengthens our position considerably. Our focus remains firmly on factors that are within our control, and we are actively transforming the business for the future. With that in mind, we are definitely confident that we will, in the near future, reach our profitability goals and thereby create long-term value for our shareholders. This concludes the slides and the presentation, but now it's the Q&A session, and our environment is dynamic, so there must be a lot of questions coming in. Yes, good morning. We already have some questions both on the results and the market developments. First question, can you comment on how much of an impact the stronger ISK has had on your results this year? That is, can you quantify the impact on EBIT? Yeah, as we went through in the presentation, our estimates are of year-to-date impact of $12.6 million on EBIT. The impact is much more on the cost side than the revenue side, as of course we sell kind of flight tickets well in advance and during a very important booking period, the early spring, and then the FX was more on par with last year. Predominantly the impact is on the cost side. As Bogi mentioned, if you look at the year as a whole, we roughly estimate the FX impact, given the current FX level, to be around $50 million for the full year. The question was about the first half, and the first quarter was it was a minimum impact on the first quarter. That's right. Can you shed some light on the change in impact of the One Transformation Journey? So far, the impact has been estimated at $70 million, which you have reported previously, and has now increased to $90 million. Is the change coming from cost or revenue initiatives or both? Does the weaker USD have any effects? It is both. As we mentioned, it's 170 initiatives that we have already implemented or are being implemented. It is both cost and revenue initiatives, but the difference from $ 70 million- $ 90 million is more revenue initiatives than cost. Yeah, it is all new initiatives. It's not reevaluation of the previous $70 million due to FX improvement or development. Just to clarify, when you say that you expect profitability to improve in Q3, are you referring to the absolute EBIT number, the EBIT margin, or both? We are more referring to the absolute number, but in general, you know, both are improving in Q3, both the margin and the absolute figure. Are you still confident in your target of achieving a long-term 8% EBIT margin? Yeah, as I said in my final slide and in my final remarks, we are confident that we will reach our long-term profitability goals, which are 8% EBIT over the cycle. We are turning every stone within the company. There are a lot of things, a lot of metrics that are developing in a positive way, and we have a playbook to navigate through the current situation. Of course, short-term volatility in FX very drastically impacts our operations, and the transatlantic market is, like in this, has been quite weaker than we expected. As we've been seeing in the past, things will then change back, and we are able to navigate through this via our network strategy and just turning every stone within the company with fleet modernization and so on. We have definitely, we have full belief that we will reach our long-term profitability goal of 8% in the near future. Yes, here we have a few questions on the market developments. Do you expect more pressure on the yields regarding the tariff situation from the U.S.? More pressure? There is quite a pressure now. The buyer market, especially on the economy side, is quite weak, and it remains to be seen how long that situation will last. As we've seen in the past, when a situation like that persists for a long time, airlines start to cut down capacity, and the situation improves again. We have seen cycles like this many times before. We expect to see this cycle being similar as history tells us. It's hard to say how long this will last. Will it be throughout the year and into next year? That remains to be seen. As I went through, if we see this situation persist into next year, we will definitely not grow during the high season. We have some flexibility to cut down capacity with aircraft that have low ownership costs. We will just have to navigate through this in an efficient way. Anything more on this, Ívar? Is there already some overcapacity on the North Atlantic, and will it get even more seasonal? When we see pressure on yields, it's not just Icelandair that is seeing pressure on yields. We see other airlines reporting this, and when we talk to our colleagues at other airlines, we are definitely seeing the same. The yields on the economy seats are quite low, and we are seeing pressure there. When the situation drags on, airlines will act on that by probably decreasing capacity. That's something that we've seen many times before. Can you give an update on the fleet delivery process from Airbus and Boeing? Yes, so basically looking at the committed fleet that we have, the committed fleet commitments, next winter we will receive three additional A321LRs, which is going to be the fleet renewal that we will have for summer 2026, or those aircraft will be ready for operation in 2026. That is currently what we have in terms of the delivery stream in the near term. Of course, we have the order with Airbus that comes later, but we are actively talking to lessors and other players in the market for additional aircraft in the coming years. There are no decisions that have been made on that at this point. On the development in the market here in Iceland, with PLAY's move to new markets, will this push Icelandair to expand flying in Q3 and Q4? What opportunities do you see with this change? As I mentioned previously in one of the slides, we are selectively adding capacity in the fourth quarter, but the total capacity to and from [Keflavík Glasgow] is down both in quarter three and quarter four. We are just selectively adding capacity into some destinations like in Northern Europe. Through this dynamic and the situation in the markets now, weak transatlantic market, we are putting more focus on to and from, and we will continue to do that as 22% growth in the second quarter depicted. That concludes the questions today. Thank you very much. Thank you for attending, and enjoy the rest of the summer. Thank you. Thank you. Bye-bye.