Icelandair Group hf. - Company Announcement

Financial restructuring formalities not completed

Icelandair Group hf. (the "Company") announced on 21 October 2010 that
agreements relating to the financial restructuring had been signed that very
same day. The sale of certain assets, which were not a part of the Company's
core assets, was one of the components of the restructuring. It was stated in
the announcement that the sales and purchase agreement contained standard
reservations, e.g. regarding the approval of relevant authorities. The plan was
to finalise those formalities today, the 15th of December. It has now become
clear that the process will take a longer time. The plan is now to finalise the
formalities before the end of January 2011. 

For futher information please contact
Bogi Nils Bogason, CFO Icelandair Group, tel:354-665-8001