Icelandair Group hf. - Company Announcement

Three new destinations to be added to the route network next year

Anchorage in Alaska, St. Petersburg in Russia and Zurich in Switzerland

Three new destinations will be added to the Company's international route
network next year. The destinations are Anchorage, Alaska, St. Petersburg,
Russia, and Zurich, Switzerland. The flight schedule for 2013 is now in
progress and will be announced in the next few weeks. 

There will be two flights a week to Anchorage from May 15th to September 15th.
The strength of the Company's hub and spoke route network will be utilized by
adding this destination, and passengers traveling between Alaska and Europe
will be offered a shorter and more economical way of travel. Alaska and Iceland
also cater to the same target groups as an exciting destination for people who
love the great outdoors and nature. 

There will be two flights a week to St. Petersburg from June 1st to September
17th. As this is the first direct scheduled flight in history from Iceland to
Russia this is a milestone in Iceland's aviation history. Opportunities that
lie in the route network, connecting Russia and the US, will also be utilized
by adding this destination. 

There will be two flights a week to Zurich from June 1st to September 14th. The
flights will strengthen our position in the Mid-European tourist market and
increase the options for the Company's Trans-Atlantic passengers.