Icelandair Group hf. - Financial Statement Release

Operational results in 2012 the best ever

  -- Earnings before taxes USD 57.4 million, up by USD 28.9 million between
     years
  -- Increase in income between years was 14%
  -- Fourth quarter EBITDA at USD 5.9 million, up by USD 7.0 million between
     years
  -- Equity ratio 39% at year-end 2012, up from 36% at year-end 2011
  -- Net interest-bearing debts reduced by USK 72.1, down to USD 18.1 at
     year-end
  -- The Board of Directors proposes a dividend of ISK 1.5 billion to
     shareholders in 2013



Björgólfur Jóhannsson, President and CEO:

“Icelandair Group's operational performance in 2012 was the best in the
Company's history.  The year was characterised by profitable organic growth,
and the operation of the Company's largest business units was successful.
Earnings before taxes amounted to USD 57.4 million, as compared to USD 28.5 in
the preceding year. It is apparent that the Company's clear strategy with focus
on the core business and the dedication of our staff are the key to these
excellent results. 

Fourth quarter operations were good, with EBITDA at USD 5.9 million, increasing
between years by USD 7.0 million. The capacity on international flights was
increased by 26% from the fourth quarter of last year, and at the same time the
number of passengers increased by 21%. The increase was greatest on
North-Atlantic flights, as it has been over the course of the year.  It was
extremely satisfying to watch the number of our passengers grow by 24% in
fourth quarter, as an increase of this magnitude is crucially important for
Icelandic tourist industry in the wintertime. This trend is consistent with our
strategy of reducing still further the seasonal fluctuations in Icelandic
tourism and developing Iceland as a year-round destination. 

At the end of 2012 the Company's balance sheet is strong and its liquidity
position is good.  Equity stands at USD 295.9 million and the equity ratio at
39%. Cash and marketable securities have increased by USD 26.1 million from the
beginning of the year, and now amount to ISK 132.8 million.  The Company is
therefore in good shape for continued profitable organic growth. 

Prospects in the Company's operations are favourable, and our estimates project
EBITDA in the range of USD 115-120 million in 2013.” 



For further information, please contact:

Björgólfur Jóhannsson President and CEO, Icelandair Group, tel. +354-896-1455
Bogi Nils Bogason, CFO, Icelandair Group, tel. +354-665-8801

Attachments:

Pressrelease_Q4_2012.pdf

Financial Statement Icelandair Group hf 31 12 2012.pdf