Icelandair Group hf. - Company Announcement

-Financial Restructuring Completed

Icelandair Group hf. (the Group) announced on 31 January 2011 that all
documents were in an agreed form between the Group and its lenders and the only
matter which was delaying the closing was the approval of the Icelandic
Competition Authority which is necessary to sell assets to a company owned by
the lenders. All necessary approvals have now been provided and all documents
relating to the financial restructuring have now been signed. The financial
restructuring of the Group is therefore now completed. 

Further information:

Björgólfur Jóhannsson, President and CEO                 +354 896 1455
Bogi Nils Bogason, CFO                                                +354 665
8801