Icelandair Group — Earnings Release 2014

Oct 30, 2014

Good third quarter performance

Good third quarter performance

-- Profit after taxes USD 85.8 million, as compared to USD 65.3 million in the
preceding year
-- EBITDA at USD 123.9 million, as compared to USD 102.2 million in the
preceding year
-- Total revenue increased by 13%
-- Equity ratio 46% at the end of September
-- Net cash provided by operating activities USD 5.8 million, as compared to
USD 30.3 million in the preceding year

Björgólfur Jóhannsson, President and CEO:

“The Company's international flight operations were successful in the third
quarter and the results were good. Capacity in the Route Network was increased
by 19% from the preceding year. The passenger load factor was 84.2%, up by 0.7
percentage points between years. Around 970 thousand passengers travelled with
the Company over the quarter, a record high. The increased scope of the
international flight operations, together with the significant increase in the
number of tourists to Iceland, had a positive effect on other business
activities of the Group.

The Company's third-quarter profit amounted to USD 85.8 million, up by USD 20.5
million from the preceding year. Financially, the Company is strong and well
prepared to take on future challenges; an announcement has already been made of
a projected 12% growth in international flight operations next year.

As a result of the third-quarter success we are now projecting our EBITDA for
2014 in the range of USD 150-155 million, up from the earnings estimate
published earlier this year.”

For further information please contact:

Bjorgólfur Jóhannsson, President and CEO
bubbi@icelandairgroup.is
+354 896 1455

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

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