Icelandair Group hf. - Company Announcement

Loss due to Dash 8 aircraft

One of two Dash 8 aircraft operated by Air Iceland ehf. (the Airline), a wholly
owned subsidiary of Icelandair Group hf., suffered a mishap when landing in
Nuuk, Greenland, last Friday, as has been reported in the Icelandic press. A
loss was suffered on the aircraft's hull and motors, which was substantial. The
Airline is insured for all possible loss, except loss due to decreased revenue
as the Airline has to operate on one less aircraft during the course of the
next few weeks. It has not been established how much loss that will be but it
will not have a significant impact on Icelandair Group hf. 



For further information please contact

Bjorgolfur Johannsson, President and CEO, + 354 896 1455