Icelandair Group hf. - Company Announcement

EBITDA forecast for 2015 increased to USD 210-215 million

The results for the third quarter 2015 will be better than anticipated when the
last EBITDA forecast was published, according to a draft interim financial
statement for the third quarter. The prospects for the fourth quarter are also
better and the revised EBTIDA forecast for 2015 is USD 210-215 million. 

According to the draft interim financial statement EBITDA for the third quarter
is approx. USD 150 million compared to USD 124 million last year. Higher
passenger revenue, lower fuel cost and lower maintenance cost than anticipated
are the main reasons for better results in the third quarter. 

The forecast for the fourth quarter assumes that EUR/USD will be 1.12 on
average. The fuel price in October has already been established, but the
forecast assumes that the fuel price will be USD/tonne 480 in November and
USD/tonne 550 in December, not considering hedging. 

The interim financial statement for the quarter will be published after the
markets have closed on October 29th and an investor presentation will be held
on October 30th at 8:30 am. 



For further information:

Bjorgolfur Johannsson, President and CEO
bubbi@icelandairgroup.is
+ 354 896 1455

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