Icelandair Group — Earnings Release 2015

Apr 24, 2015

Better results in Q1 2015 than was forecasted

Better results in Q1 2015 than was forecasted

According to a draft Interim Financial Statement for Q1 the results will be
better than forecasted at the beginning of the year, mainly due to increased
sales and better utilisation. EBITDA will be negative in the range of USD 2-4
million. The load factor on international flights was 4.9 percentage points
higher than in Q1 2014 and utilisation of hotel rooms was 7.8 percentage points
higher. On the other hand EUR/USD has been more unfavourable than expected.

The prospects for the full year are favourable and bookings for the high season
look good. The forecast for 2015 now assumes that EUR/USD will be 1.07 on
average for the last nine months of the year but the forecast that was
published in February assumed that it would be 1.15. The strengthening of the
USD against the European currencies has and will have a bad influence on the
company's results, especially during the high season. Better results in Q1
leads to an unchanged forecast for the full year, despite unfavourable
development in currency rates. We anticipate that EBITDA will be in the range
of USD 160-165 million. The results are very sensitive to external factors such
as currency and fuel price fluctuations and uncertainty in the labour market in
Iceland can have significant impact on the results.

The Interim Financial Statement for Q1 2015 will be published on 29 April and a
presentation meeting will be held on Thursday 30 April 2015 at Icelandair Hotel
Reykjavik Natura at 16:30 in Room 3.

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