Icelandair Group — Capital/Financing Update 2017

Feb 15, 2017

Successful completion of a USD 40 million subsequent issue of bonds

Successful completion of a USD 40 million subsequent issue of bonds

Icelandair Group hf. has successfully completed a subsequent issue of bonds in
the amount of USD 40 million under the terms of its senior unsecured bonds with
ISIN NO0010776982 (the “Bonds”). Net proceeds will be used for general
corporate purposes. Following the issue, the total nominal amount outstanding
under the Bonds will be USD 190 million.

Pareto Securities AB acted as Sole Bookrunner on the subsequent issue.

For further information, please contact:

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