Transfer to Nuuk airport sees Air Greenland slump to H1 loss
September 9, 2025
Air Greenland has warned that adapting to its new operating environment is proving costly, after posting a much steeper loss for the first half of 2025.
The airline has struggled with the switch of its main hub from Kangerlussuaq to the capital Nuuk, alongside severe weather and infrastructure teething problems that have hit reliability.
For the first six months of the year, the carrier reported a pre-tax deficit of DKK 87.4 million, compared with a loss of just over DKK 21 million in the same period of 2024.
Air Greenland impacted by base change
The relocation to Nuuk, which became the central base for international and domestic services late last year, has coincided with higher costs and a sharp fall in operational performance.
Delays linked to the commissioning of the new airport, icy runway conditions, baggage and fuelling issues, and shortages of spare parts led to 59 cancellations of jet aircraft flights in the first half of 2025.
For comparison, just three flights were cancelled in the same period last year when Kangerlussuaq was the hub.
The changes have rippled through the airline’s network. The regularity of Dash-8 operations fell to 72% from almost 84% in 2024, while on-time performance slid to less than half of all flights.
Domestic feeder traffic was also badly affected, falling by more than half, with passengers in northern Greenland now travelling longer distances on average without this being reflected in ticket prices.
“This has negatively affected profitability in the domestic market despite minor fare adjustments,” the carrier said.
Costs up, disruption increased
Operating costs rose more than 10% year-on-year, with disruption-related expenses nearly doubling to DKK 70.9 million. Personnel costs also edged higher as the workforce increased to 711 full-time staff.
Despite the headline loss, the airline said cash flow from operations remained solid at DKK 169.7 million, leaving cash reserves of DKK 164.6 million.
Looking ahead, the board has trimmed its outlook and now expects a full-year pre-tax loss of around DKK 30 million, assuming no further external shocks.
Management is working on revised schedules and process changes designed to improve stability and limit disruption for customers.
“We are undergoing a major transition after many years of operating under the same traffic pattern and must now adapt to a new reality,” said CEO Jacob Nitter Sørensen.
“While many of the challenges are beyond our control, we are part of the equation and take responsibility by implementing measures to stabilise operations where possible.
“We must improve regularity while maintaining our focus on implementing solutions and improving processes to enhance the customer experience, especially during disruptions. Weather is a factor we cannot influence.”
Sticking with the plan
Board chair Malik Hegelund Olsen said the company’s investment in facilities to support the country’s expanding airport network was the right decision despite teething problems.
“It is crucial that we maintain our long-term ambitions, even under pressure from short-term challenges. The upcoming airports in Qaqortoq and Ilulissat must be ready for stable operations so we can realize our long-term strategy. This will benefit the country’s regions, its citizens, and the local business community, contributing to a more economically sustainable Greenland,” he said.
“Now that the summer peak season is over, management will evaluate and initiate new improvement initiatives aligned with the long-term strategy, and we will naturally support this process,” he added.
