Icelandair Group hf. - Company Announcement

Traffic Data September 2011

Icelandair carried 168 thousand passengers in September which is a record
passenger number for the month of September and an increase of 15% as compared
to September last year.  Capacity was increased by 23% from last year and the
seat load factor was 78.3% which is above average for September. As compared to
September last year, load factor decreased by 3.7 percentage points as compared
to record load factor in September 2010.  Traffic increased most on the market
To Iceland where the increase was 24%. This is in line with the company's
strategy to increase the number of tourists to Iceland, and to decrease
seasonal fluctuations. 

Air Iceland carried 30 thousand passengers in September which equals a 9%
increase compared to last year.  Seat load factor was 66.5% and decreased
slightly between years.  Sold block hours in the capacity sector decreased by
11%. Freight increased by 4%. 

The number of available hotel room nights was up by 12% from last year and the
room utilization rate was 80.6%. Icelandair Hotel Reykjavik Natura was
renovated and reopened under a new name in June and has been well received by
guests. September was a record month in the history of the hotel. 



ICELANDAIR                     SEP 11   CHG (%)     YTD 11   CHG (%)
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Number of Passengers (PAX)    168,013       15%  1,393,620       19%
Load Factor (%)                 78.3%  -3.7 ppt      79.6%   1.0 ppt
Available Seat KM (ASK´000)   611,970       23%  4,892,249       20%
AIR ICELAND                    SEP 11   CHG (%)     YTD 11   CHG (%)
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Number of Passengers (PAX)     29,984        9%    271,918        4%
Load Factor (%)                 66.5%  -0.3 ppt      69.8%   1.6 ppt
Available Seat KM (ASK´000)    16,257       16%    141,492        9%
CAPACITY                       SEP 11   CHG (%)     YTD 11   CHG (%)
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Fleet Utilization (%)           92.3%   5.2 ppt      92.3%  -0.9 ppt
Sold Block Hours                2,703      -11%     26,603        3%
ICELANDAIR CARGO               SEP 11   CHG (%)     YTD 11   CHG (%)
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Available Tonne KM (ATK´000)   15,929       26%    130,266       11%
Freight Tonne KM (FTK´000)      6,401        4%     55,691        2%
ICELANDAIR HOTELS              SEP 11   CHG (%)     YTD 11   CHG (%)
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Available Hotel Room Nights    17,850       12%    198,852        6%
Sold Hotel Room Nights         14,385       26%    142,448        8%
Utilization of Hotel Rooms      80.6%   9.3 ppt      71.6%   1.6 ppt



For further detailed information please contact:

Bogi Nils Bogason, CFO, Icelandair Group tel: + 354 665-8801
Íris Hulda Þórisdóttir, Director Investor Relations, Icelandair Group tel: +
354 840-7010

Attachments:

Traffic Data_September2011.pdf