Icelandair Group — Capital/Financing Update 2016

Oct 8, 2016

Icelandair Group contemplating the issuance of USD bonds

Icelandair Group contemplating the issuance of USD bonds

Icelandair Group hf. has entered into an agreement with Pareto Securities to
look into the possibility of issuing USD denominated bonds. If the transaction
will be completed the proceeds will be used to finance pre-delivery payments
for new aircraft and general corporate purposes. Meetings with possible
investors will take place as of October 10th 2016.

Further information:

Bogi Nils Bogason
CFO, Icelandair Group
bogi@icelandairgroup.is
Tel: +354 665 88 01

Markus Wirenhammar
Head of Debt Capital Markets, Pareto Securities
mw@paretosec.com
Tel: +46 70 872 51 86