Icelandair Group — Capital/Financing Update 2014

Dec 22, 2014

Bond issuance

Bond issuance

Icelandair Group hf. has concluded the sale of a new unsecured bond issue. The
bonds, ICEAIR 15 1, are denominated in USD, carry 4.25% fixed interest paid
semi-annually, and have a maturity date in January 2020.

Bonds in the amount of USD 23,660,000 were sold to Icelandic institutional
investors on 19 December 2014. The total size limit of the issue is USD
75,000,000.

The bonds will be issued electronically and an issue description will be made
available on the Icelandic Security Depository‘s website on 15 January 2015 at
the earliest.

The bonds will be issued with the authorization of the Central Bank of Iceland.

The bonds are scheduled to be listed on the NASDAQ Iceland Main Market with
Íslandsbanki acting as the listing adviser.

Further information:

Bogi Nils Bogason, CFO
bogi@icelandairgroup.is
+ 354 665 8801