FL Group, the investment firm that owns Icelandair, Sterling Airlines and other air transport and tourism companies, reported a first-quarter net profit of ISK5.84 billion ($82.9 million), a result that compared to a profit of ISK25 million in the year-ago quarter and "highlight[s] FL Group's focus as an investment company specializing in strategic and private equity projects as well as hedge fund activity."During the quarter, FL Group completed its acquisition of Sterling, which was announced last fall (ATWOnline, Oct. 26, 2005) and purchased a 6% stake in Finnair. It also made plans to list Icelandair Group on the Icelandic Stock Exchange.

Icelandair's pre-tax loss of ISK677 million was improved from a loss of ISK1.05 billion in the year-ago quarter. Sterling lost ISK1.8 billion before taxes, a result that widened to a ISK2.6 billion loss including restructuring charges.

FL Group said of its airlines, "The performance of Icelandair Group is exceptional with a seasonal loss which is much lower than the year before. The Sterling turnaround is ahead of schedule and we are pleased with the progress they are making, bearing in mind the significant seasonality of the business."