Icelandair Group hf. - Company Announcement

EBITDA forecast 2011 has not changed

In light of news regarding an email sent by the Managing Director of Icelandair
ehf. to employees that said that an increase in fuel prices would have a
negative impact on the profit of the company, it is hereby announced that the
profit forecast that was published on 14 February 2011 by Icelandair Group has
not changed. The forecast predicted that the EBITDA would amount to ISK 9.5
billion. The email referred to the decrease in the EBITDA forecast for 2011
from the actual numbers in 2010 in the amount of ISK 3 billion, despite a
significant capacity increase from 2010 to 2011 in the amount of ISK 3 billion,
as has been previously announced. This decrease is because of increase in fuel
prices and further factors as was announced on 14 February 2011. 



Further information:

Bjorgolfur Johannsson, President and CEO, +354 896-1455