Icelandair Group hf. - Company Announcement

Traffic Data March 2011

Record Q1 load factor at Icelandair but fuel prices squeeze margins

Icelandair carried 13% more passengers in Q1 2011 than in Q1 2010 and had a
record load factor of 71%.  Fleet utilisation in the capacity segment is up
between years.  Air Iceland carried fewer passengers in Q1 2011 than in Q1 2010
mainly due to cancellation of flights relating to bad weather and because of
Vestmanneyjar route was ceased in 2010. "Despite strong demand and a high load factor at Icelandair EBITDA in Q1 2011
will be lower than in Q1 2010.  The main reason for this is high fuel prices. 
Booking status for the summer is good and currency development will to some
extent recoup higher fuel price.  Our EBITDA forecast of ISK 9.5 billion is
unchanged for the year 2011 according to present assumptions." says Björgólfur
Jóhannsson, President and CEO of Icelandair Group. 



ICELANDAIR                Mar 11   Mar 10   CHG (%)   YTD      YTD      CHG (%) 
Number of Passengers       96,639   87,839       10%  257,814  227,691       13%
 (PAX)                                                                          
Load Factor (%)             76.7%    74.4%   2.3 ppt    71.0%    68.1%   2.9 ppt
Available Seat            346,698  315,857       10%  990,918  888,079       12%
 Kilometers (ASK´000)                                                           
AIR ICELAND               Mar 11   Mar 10   CHG (%)   YTD      YTD      CHG (%) 
Number of Passengers       27,978   29,247       -4%   76,978   79,828     -3.6%
 (PAX)                                                                          
Load Factor (%)             69.6%    72.8%  -3.2 ppt    68.6%    69.3%  -0.8 ppt
Available Seat             12,768   11,824        8%   35,353   32,949        7%
 Kilometers (ASK´000)                                                           
CAPACITY                  Mar 11   Mar 10   CHG (%)   YTD      YTD      CHG (%) 
Fleet Utilization (%)       94.6%    86.4%   8.2 ppt    95.1%    88.3%   6.8 ppt
Sold Block Hours            2,731    2,719        0%    8,557    7,975        7%
ICELANDAIR CARGO          Mar 11   Mar 10   CHG (%)   YTD      YTD      CHG (%) 
Available Tonne            13,733   12,596        9%   36,445   34,293        6%
 Kilometers (ATK´000)                                                           
Freight Tonne Kilometers    7,186    7,924       -9%   18,554   20,075       -8%
 (FTK´000)                                                                      
ICELANDAIR HOTELS         Mar 11   Mar 10   CHG (%)   YTD      YTD      CHG (%) 
Available Hotel Room       16,492   16,492        0%   47,880   47,640        1%
 Nights                                                                         
Sold Hotel Room Nights      9,675   10,294       -6%   25,124   27,486       -9%
Utilization of Hotel        58.7%    62.4%  -3.8 ppt    52.5%    57.7%  -5.2 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

Attachments:

Traffic Data March2011.pdf