Icelandair Group hf. - Company Announcement

Effects of Eruption and Volcanic Ash on Icelandair Group

Over the course of the last days, the employees of Icelandair Group have worked
diligently to minimize the effects of the volcanic eruption in Eyjafjallajokull
on the Group‘s operations. 
The eruption and the volcanic ash have affected most companies within the
Group, in particular the operations of Icelandair, Icelandair Cargo and
Bluebird. In addition, some disruptions have been in the operations of Iceland
Travel and Vita. Icelandair Group estimates that the Group‘s total daily loss
amounts to ISK 100 million due to flight disruptions and other complications. 
Despite closures of European airspace Icelandair has added new flights to its
schedule when possible. Over the weekend Icelandair flew to Norway and Scotland
and scheduled flights from Iceland to Finland and Sweden commenced this
morning. Furthermore, several cargo flights have been operated between Iceland
and Europe since the eruption started. 
According to the latest weather information Keflavik airport will remain open
throughout the week. No disruption has been in Icelandair‘s scheduled flights
to the USA and Icelandair will continue to operate flights from Europe to the
USA over the course of the week. 
Icelandair Group prides itself on offering best possible services to its
customers. The company wants to extend its gratitude to its clients which have
shown understanding of the inconvenience that this situation has caused. 

For further information, please contact:
Björgólfur Jóhannsson, CEO, tel.+354- 896 -1455
Bogi Nils Bogason, CFO, tel.+354-665-8801