Icelandair Group — Capital/Financing Update 2017

May 16, 2017

Sale and leaseback of four Boeing 737 MAX aircraft

Sale and leaseback of four Boeing 737 MAX aircraft

Icelandair, a subsidiary of Icelandair Group, has signed an agreement for sale
and leaseback of four Boeing 737 MAX aircraft. One aircraft will be delivered
in the first quarter of 2018 and three in the first quarter of 2019. Two of the
aircraft are Boeing 737 MAX8 and two are Boeing 737 MAX9. Icelandair has an
option to add two aircraft to the agreement. The Lessor is BOCOMM Leasing
Aviation, a subsidiary of Bank of Communication in China. The lease periods are
almost 9 years.

“We are very pleased that financing of our 737 MAX Aircraft is going as
planned. Our work to finance other aircraft to be delivered in 2018 and 2019 is
ongoing and progressing well.” said Bogi Nils Bogason, CFO of Icelandair Group.

“We are delighted to be able support Icelandair with a sale and leaseback
solution and to welcome Icelandair to our international customer base. We look
forward to seeing these aircraft in service and working with Icelandair in the
future.” Says Li Ru, the Senior Vice President of BOCOMM leasing.

For further information, please contact:

Bogi Nils Bogason, CFO

bogi@icelandairgroup.is

• 354 665 88 01