Icelandair Group hf. - Company Announcement

Air Iceland has purchased Bombardier Q400 aircraft

Air Iceland has purchased three Bombardier Q400 aircraft. The total investment
will increase the total assets of Icelandair Group by 25 million USD when the
estimated sales price of the Air Iceland's five Fokker 50 aircraft has been
taken into account. The aircraft year of manufacture is 2000 and 2001 and they
will be delivered to Air Iceland in July and August this year. On delivery the
aircraft will go through an implementation process for Air Iceland's route
network but the first aircraft is expected to be used in the route network in
December 2015. The investment will be financed with cash from Icelandair Group. 



For further detailed information please contact:

Bogi Nils Bogason, CFO, Icelandair Group tel: + 354 665-8801