Icelandair Group — Major Shareholding Notification 2019

May 8, 2019

1

FJÁRMÁLAEFTIRLITIĐ

THE FINANCIAL SUPERVISORY ACT IN EFFECTIVE 1855 AND

STANDARD FORM – NOTIFICATION OF THE ACQUISITION OR DISPOSAL OF MAJOR PROPORTIONS OF VOTING RIGHTS

VOTING RIGHTS ATTACHED TO SHARES – ARTICLE 85 OF THE ACT ON SECURITIES TRANSACTIONS NO. 108/2007

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached¹: Icelandair Group hf. (ICEAIR – ISIN IS0000013464)

2. Reason for the notification (please tick the appropriate box or boxes):
   ☑ an acquisition or disposal of voting rights
   ☐ an acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached
   ☐ an event changing the breakdown of voting rights

3. Full name of person(s) subject to the notification obligation²: PAR Investment Partners, L.P.

4. Full name of shareholder(s) (if different from the person mentioned in point 3.)³: N/A

5. Date of the transaction and date on which the threshold is crossed or reached⁴: 7 May 2019

6. Threshold(s) that is/are crossed or reached: 5% and 10% exceeded

7. Notified details:

A) Voting rights attached to shares
Class/type of shares (if possible using the ISIN CODE)	Situation previous to the Triggering transaction		Resulting situation after the triggering transaction⁵
	Number of Shares	Number of Voting rights⁶	Number of shares	Number of voting rights⁷		% of voting rights
			Direct	Direct⁸	Indirect⁹	Direct	Indirect
IS0000013464	50,250,000 (below minimum threshold)	50,250,000 (below minimum threshold)	675,250,000	675,250,000	0	12.42%	0%
SUBTOTAL A (based on aggregate voting rights)	50,250,000 (below minimum threshold)	50,250,000 (below minimum threshold)	675,250,000	675,250,000		12.42%

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FJÁRMÁLAEFTIRLITID

THE FINANCIAL INSTRUMENT ACTIVITIES REVISED

B) Financial Instruments
Resulting situation after the triggering transactiona)
Type of financial instrument	Expiration Date a)	Exercise/Conversion Period/Date a)	Number of voting rights that may be acquired if the instrument is exercised/converted	% of voting rights
		SUBTOTAL B (in relation to all expiration dates)
Total (A+B) [if applicable]	number of voting rights	% of voting rights
---	---	---

1. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable a)b): N/A
2. In case of proxy voting: N/A
3. Additional information: N/A

Done in Boston, Massachusetts, on 7 May 2019.

For and on behalf of

PAR Investment Partners, L.P.

Steven M. Smith,

Chief Operating Officer and General Counsel