Icelandair Group hf. - Financial Statement Release

Good third quarter results

  -- Profit after taxes amounted to USD 103.1 million, up by USD 17.3 million
     from the preceding year
  -- EBITDA amounted to USD 150.9 million, as compared to USD 123.9 million in
     the third quarter of 2014
  -- The EBITDA ratio was 35.1%, as compared to 29.6% in the corresponding
     period of last year
  -- Total revenue increased by 3%, the increase at a fixed exchange rate is 13%
  -- The equity ratio was 46% at the end of September
  -- The EBITDA guidance for 2015 increased to USD 210-215 million



BJÖRGÓLFUR JÓHANNSSON, PRESIDENT AND CEO:

“Our performance in the third quarter was good and our business operations were
successful. We updated our EBITDA guidance earlier this week, and now we
project it in the range of USD 210-215 million. The increase is a result of the
Company's good performance in the third quarter, largely stemming from
increased passenger revenues and lower fuel costs, but in addition maintenance
expenses were lower than anticipated. Also, the performance outlook for the
fourth quarter has improved, mostly as a result of a stronger booking situation
in our international flights; in addition, the trends in external factors have
favoured the Company since our last quarterly report.” 

The outlook for Icelandair Group is favourable. The international flight
schedule for 2016 was presented in early September, with the capacity up by 18%
from 2015. The number of passengers transported is projected at 3.5 million,
compared to 3.0 million passengers in the current year. Competition in the
market has never been more fierce and it is likely to intensify in the near
future, both to and from Iceland and across the Atlantic. The tourist industry
is developing, with the tourist season becoming longer, which means less
seasonal fluctuations and greater opportunities for development around the
country. 

The Icelandic tourist industry is going through a period of rapid growth and
conditions last summer were very challenging, particularly at Keflavik
International Airport. Our staff did an excellent job over the peak season.” 



For further information, please contact:

Björgólfur Jóhannsson, President and CEO of Icelandair Group
tel: +354-896-1455

Bogi Nils Bogason, Chief Financial Officer of Icelandair Group
tel: +354-665-8801

Attachments:

Pressrelease Q32015.pdf

Icelandair Group hf 30 9 2015.pdf