Icelandair Group hf. - Company Announcement

Estimated loss due to pilots strike

If the strike which has been called by The Icelandic Airline Pilots Association
(FIA) lasts for the entire period that it has been called for, it is estimated
that Icelandair Group will lose 13-15 million dollars. That includes lost
income when saved cost of cancelled flights has been withdrawn, in addition to
direct estimated cost of assistance to passengers. Neither possible loss due to
FIA's overtime ban nor loss due to fewer bookings for flights that are not
cancelled are included. Nor are the possible long term effects that the strike
may have on Icelandair Group and Iceland as a tourist destination. 



Further information:

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

Iris Hulda Thorisdottir, Director Investor Relations
iris@icelandairgroup.is
+ 354 840 7010