Icelandair Group hf. - Financial Statement Release

First quarter performance exceeds management expectations

  -- First quarter loss totalled USD 13.2 million
  -- Strong organic growth with total income 21% in excess of the first quarter
     of 2011
  -- Increase in number of tourists to Iceland increased income from
     tourist-related services
  -- Net cash from operations USD 86.1 million
  -- Equity ratio was 31%



Björgólfur Jóhannsson, President and CEO

“The Company's performance in the first quarter exceeded our expectations and
the quarter was characterised by continued organic growth. The increase in
income amounted to 21% between years, with passenger revenues up by 31%. The
number of passengers increased both on international flights and on regional
flights. The great increase in number of tourist travelling to Iceland had a
positive impact on tourism services. 

At the beginning of the year we issued an EBITDA forecast for 2012, where we
projected EBITDA in the range of USD 90-98 million. Since then the trends in
operating conditions have mostly been positive. Based on current assumptions,
EBITDA for the year is now projected at USD 100-105 million.” 



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:

Icelandair Group Pressrelease_Q1_2012.pdf

Icelandair Group hf 31 03 2012.pdf