Icelandair Group hf. - Financial Statement Release

Icelandair Group's EBITDA in Q2 improves between years

  -- EBITDA positive by USD 50.3 million, as compared to USD 45.2 million in the
     second quarter of 2014
  -- Improvement between years explained largely by profitable organic growth
     and lower fuel prices
  -- Transport revenue up by 2%, with total revenue down by 1%
  -- Equity ratio 36% at the end of June
  -- Net cash from operations amounted to USD 86.7 million



Björgólfur Jóhannsson, President and CEO"The Group's second quarter performance was good, with EBITDA at USD 50.3
million, up by USD 5.0 million, as compared to the results of the second
quarter of 2014. The principal reason for the Company's success was the
profitable growth in the Company's international flight operations. Capacity on
international flights was increased by 15% over the quarter from last year and
at the same time the number of passengers increased by 17%. The passenger load
factor was favourable, amounting to 81.8% and up by 1.8 percentage points
between years.  In addition, the fall in the price of fuel between years had a
positive impact on the Company's results. Operation of other business
activities of the Company was also successful in the quarter. 

At the beginning of the year we issued an EBITDA-forecast projecting earnings
of USD 160-165 million, and the accuracy of the forecast was confirmed with the
publication of the first quarter report last April.  The Company's operations
have been successful in the first six months of the year, and in addition
trends in external conditions have been favourable since the publishing of Q1
Financial report in April.  Updated projections now assume an average EUR/USD
cross rate of 1.10 instead of 1.07, which will have a positive impact on
operations.  Also, the booking status for the coming months in international
flight operations has strengthened beyond the Company's projections which, all
other things being equal, will have a positive impact on performance in the
second half of the year, in particular performance in the third quarter. 
Taking all these factors into account, it is now assumed that the Company's
EBITDA for 2015 will be in the range of USD 180-185 million."



For further information please contact:

Bjorgólfur Jóhannsson, President and CEO
bubbi@icelandairgroup.is
+354 896 1455

Bogi Nils Bogason, CFO
bogi@icelandairgroup.is
+ 354 665 8801

Attachments:

Icelandair Group hf 30 6 2015.pdf

Pressrelease Q22015.pdf