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REYKJAVIK, Oct 10 (Reuters) - Businesses beyond Iceland's banks began
feeling the sting of the island's financial crisis, as Icelandair said domestic
demand had slumped and a leading publisher said it was closing a newspaper and
cutting jobs.
"Domestic demand has dropped quite dramatically in the past few days due
to the events," Icelandair spokesman Gudjon Arngrimsson said on Friday. "But
demand internationally is up versus last year."
Arngrimsson said some 35 percent of Icelandair's passenger numbers come
from people leaving the country, while 65 percent are from flights to Iceland or
flights which stop over on their way between Europe and North America.
"Of course we are affected (by the crisis), but we're getting decent
traffic from other markets," he said. "We are trying to let the weak crown help
us."
Given the uncertainty, Arngrimsson said it was impossible to predict
whether the company will be profitable this year. Asked about the firm's
liquidity, he said: "Our situation is all right in that regard."
In an another instance of how the financial crisis is affecting
businesses on the island, whose banking system has crumbled over the past few
days, media publisher Morgunbladid said it was cutting jobs and combining some
of its operations with peer 365 Media.
The daily newspaper 24 Stundir, published by Morgunbladid, would cease
publication as of Friday, resulting in 20 jobs being cut, Morgunbladid said on
its Web site.
(Reporting by Brett Young and Omar Valdimarsson; Writing by Niklas Pollard;
Editing by David Holmes)
((For a related story please double click on [ID:nLA616407])) Keywords:
FINANCIAL/ICELAND BUSINESS
REYKJAVIK, Oct 10 (Reuters) - Businesses beyond Iceland's banks began
feeling the sting of the island's financial crisis, as Icelandair said domestic
demand had slumped and a leading publisher said it was closing a newspaper and
cutting jobs.
"Domestic demand has dropped quite dramatically in the past few days due
to the events," Icelandair spokesman Gudjon Arngrimsson said on Friday. "But
demand internationally is up versus last year."
Arngrimsson said some 35 percent of Icelandair's passenger numbers come
from people leaving the country, while 65 percent are from flights to Iceland or
flights which stop over on their way between Europe and North America.
"Of course we are affected (by the crisis), but we're getting decent
traffic from other markets," he said. "We are trying to let the weak crown help
us."
Given the uncertainty, Arngrimsson said it was impossible to predict
whether the company will be profitable this year. Asked about the firm's
liquidity, he said: "Our situation is all right in that regard."
In an another instance of how the financial crisis is affecting
businesses on the island, whose banking system has crumbled over the past few
days, media publisher Morgunbladid said it was cutting jobs and combining some
of its operations with peer 365 Media.
The daily newspaper 24 Stundir, published by Morgunbladid, would cease
publication as of Friday, resulting in 20 jobs being cut, Morgunbladid said on
its Web site.
(Reporting by Brett Young and Omar Valdimarsson; Writing by Niklas Pollard;
Editing by David Holmes)
((For a related story please double click on [ID:nLA616407])) Keywords:
FINANCIAL/ICELAND BUSINESS