Icelandair Group — Earnings Release 2016

Aug 8, 2016

Traffic Data July 2016

Traffic Data July 2016

The Company carried 491 thousand passengers on international flights in July.
The number of passengers was 18% above the figure for July last year. The
company has never before carried more passengers in a single month. The
passenger load factor was 87.7% compared to 88.9% in July last year. The
capacity increase totalled 22% between years.

Passengers on domestic flights and Greenland flights were 35 thousand in July.
The capacity was increased by 14% compared to July 2015. The load factor was
71.6%, decreasing by 5.9 percentage points from last year, mainly due to new
destination in Greenland which is still in development stage. The number of
sold block hours in charter flights remained the same between years. Cargo
transport increased by 1% year-on-year. The number of sold room nights at the
Company's Hotels increased by 7% compared to previous year. The room
utilisation was 90.8%, compared to 90.4% in July last year.

INTERNATIONAL JUL 16 JUL 15 CHG (%) YTD 16 YTD 15 CHG (%)
FLIGHTS

---

Number of Passengers 491,007 414,678 18% 2,040,371 1,714,712 19%
Load Factor 87.7% 88.9% -1.3 ppt 82.1% 82.9% -0.8 ppt
Available Seat KM 1,697.0 1,395.6 22% 7,519.6 6,180.6 22%
(ASK´000,000)

DOMESTIC AND JUL 16 JUL 15 CHG (%) YTD 16 YTD 15 CHG (%)
GREENLAND FLIGHTS

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Number of Passengers 35,016 33,492 5% 178,737 171,473 4%
Load Factor 71.6% 77.6% -5.9 ppt 71.6% 73.3% -1.7 ppt
Available Seat KM 22.8 20.1 14% 90.6 84.7 7%
(ASK´000,000)

CHARTER FLIGHTS JUL 16 JUL 15 CHG (%) YTD 16 YTD 15 CHG (%)

Fleet Utilisation 100.0% 100.0% 0.0 ppt 100.0% 100.0% 0.0 ppt
Sold Block Hours 2,169 2,180 0% 13,890 13,235 5%

CARGO JUL 16 JUL 15 CHG (%) YTD 16 YTD 15 CHG (%)

Freight Tonne KM 8,428 8,349 1% 61,794 57,460 8%
(FTK´000)

HOTELS JUL 16 JUL 15 CHG (%) YTD 16 YTD 15 CHG (%)

Available Hotel Room 45,647 42,842 7% 201,929 192,939 5%
Nights
Sold Hotel Room 41,469 38,743 7% 163,134 153,105 7%
Nights
Utilisation of Hotel 90.8% 90.4% 0.4 ppt 80.8% 79.4% 1.4 ppt
Rooms

For further detailed information please contact:

Bogi Nils Bogason, CFO, Icelandair Group tel: + 354 665-8801
Íris Hulda Þórisdóttir, Director Investor Relations, Icelandair Group tel: +
354 840-7010

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