Icelandair Group hf. - Company Announcement

Icelandair Group purchases two Boeing 757 200 aircraft

Icelandair Group has purchased two Boeing 757 200 aircraft which the Group
previously had on a long term lease. It was decided to acquire the aircraft
from the Lessor due to the favourable purchase price being offered.  The
majority of the purchase price was financed with a loan of roughly 24 million
USD with the maturity of 6 years.  The two aircraft have been used in
Icelandair´s route network and they will continue to operate within that
network.  Björgólfur Jóhannson President and CEO of Icelandair Group: “Given
the estimated usage time of the aircraft the net effect of the acquisition on
the Group accounts will be positive, which was a leading factor in the
decision.” 

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