Icelandair Group — Capital/Financing Update 2014

Jul 30, 2014

Possibilities of a bond issue in Iceland explored

Possibilities of a bond issue in Iceland explored

The Board of Directors of Icelandair Group has decided to explore the
possibility of a bonds issue in Iceland. With the bond issue the funding of the
Company will be diversified and the Company prepared for the investment in new
fleet. The Central Bank has granted the Company authority to issue bonds worth
up to EUR 60 million and sell to domestic investors for ISK. The exact terms of
the bond has not been decided. Icelandair Group has reached an agreement with
Íslandsbanki to handle the potential issue and sale

For further detailed information please contact:

Bogi Nils Bogason, CFO, Icelandair Group tel: + 354 665-8801