Icelandair Group hf. - Company Announcement

Effect of the volcanic eruption in Grimsvotn on Icelandair Group

Keflavik International Airport has been closed since 9:00 AM yesterday due to
the volcanic eruption in Grimsvotn. According to the newest weather and ash
forecasts it is assumed that Keflavik airport will reopen tonight and flights
will be back on schedule tomorrow. If those forecasts will realize and no
further disruptions will occur related to the eruption Icelandair Group
estimates that its economic damage due to this will be minimum and its EBITDA
forecast of ISK 9.5 billion will remain unchanged. 



For further information please contact:

Bogi Nils Bogason, CFO Icelandair Group tel: +354 665 8801

Iris Hulda Thorisdottir, Director Investor Relations Icelandair Group +354
8407010