Icelandair Group hf. - Company Announcement

Traffic Data December 2011

Icelandair Group volume of business increased substantially in 2011

Icelandair's volume of business increased substantially in 2011. Icelandair
increased its capacity by 18% from the preceding year. Passengers were 1.75
million, up by 260 thousand, or 18%. The passenger load factor was the best in
the company's history, at 79.3%, up by 0.9 percentage points. Passengers on Air
Iceland flights were 353 thousand, increasing in number by 3% between years.
The company successfully focused on expanding its flights to Greenland, and in
addition the number of passengers on domestic flights also increased between
years. The number of sold hours in our capacity sector was almost the same in
2011 as in 2010. Air freight on scheduled flights increased by 7%. Available
hotel room nights in Icelandair hotels were 253 in all, up by 7% between years.
 The utilization of hotel rooms was 67.9%. 

Icelandair flew 100 thousand passengers in December, 10% more than in December
last year. The increase in capacity between years was 10%, and the passenger
load factor was 74.2%, slightly down from last year. Passengers flying with Air
Iceland were approximately 25 thousand in December up by 2% between years. The
number of sold hours in our capacity sector fell by 12% between years. Air
freight increased by 31%, as compared to December last year. The utilization of
hotel rooms in Icelandair Hotels was 43.6%, increasing by 3.3 percentage points
in comparison with the corresponding month last year. 

This year the company will celebrate the 75th anniversary of its foundation.
The company's history goes back to 1937 when an airline, Flugfélag Akureyrar,
was founded at Akureyri on the north coast of Iceland. The company has always
focused on marketing Iceland as a destination for foreign tourists and a
favourable stopover option for transatlantic passengers. The company's business
activities have seen substantial growth since 2008, and the increase in
scheduled flights between the years 2009 and 2012 is projected at over 50%.
Icelandair Group CEO Björgólfur Jóhannsson: “Icelandair's flight schedule in
its anniversary year will be its largest ever. If everything goes according to
plan, the number of passengers will increase by 250 thousand this year, to
approximately two million.  There are also plans to increase the number of Air
Iceland's flights to Greenland, in addition to increasing our market share in
the charter market out of Iceland through Ferd.is. A new hotel will open in
Reykjavík Harbour this spring. Through this continued growth we will keep on
supporting the Icelandic tourist industry and the Icelandic economy while at
the same time laying a foundation for the operation of our company.” 



ICELANDAIR                     DEC 11   CHG (%)     YTD 11   CHG (%)
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Number of Passengers (PAX)    100,118       10%  1,744,065       18%
Load Factor (%)                 74.2%  -0.4 ppt      79.3%   0.9 ppt
Available Seat KM (ASK´000)   375,993       10%  6,169,070       18%
AIR ICELAND                    DEC 11   CHG (%)     YTD 11   CHG (%)
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Number of Passengers (PAX)     24,750        2%    353,127        3%
Load Factor (%)                 64.0%   0.6 ppt      69.3%   1.1 ppt
Available Seat KM (ASK´000)    12,198        3%    179,740        7%
CAPACITY                       DEC 11   CHG (%)     YTD 11   CHG (%)
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Fleet Utilization (%)           97.9%  -2.1 ppt      93.5%  -1.1 ppt
Sold Block Hours                2,886      -12%     34,524        0%
ICELANDAIR CARGO               DEC 11   CHG (%)     YTD 11   CHG (%)
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Available Tonne KM (ATK´000)   11,945       16%    168,759       11%
Freight Tonne KM (FTK´000)      7,569       31%     77,991        7%
ICELANDAIR HOTELS              DEC 11   CHG (%)     YTD 11   CHG (%)
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Available Hotel Room Nights    17,905        9%    253,052        7%
Sold Hotel Room Nights          7,811       18%    171,924       10%
Utilization of Hotel Rooms      43.6%   3.3 ppt      67.9%   1.9 ppt

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 - Desember.pdf