OCTOBER 10TH, 2016

Icelandair Group contemplating the issuance of USD bonds

Icelandair Group hf. has entered into an agreement with Pareto Securities to look into the possibility of issuing USD denominated bonds. If the transaction will be completed the proceeds will be used to finance pre-delivery payments for new aircraft and general corporate purposes. Meetings with possible investors will take place as of October 10th 2016.