JANUARY 7TH, 2013

Icelandair Group: Traffic Data December 2012

The Company carried 120 thousand passengers on international flights in
December. The number of passengers was up by 20% as compared to December last
year. The capacity increase compared to December 2011 was 27%. The passenger
load factor was 72.7% compared to 74.3% last year. Passengers in 2012 amounted
to a record 2 million, which represents an increase of 16% from previous year.

Passengers on regional and Greenland flights were roughly 22 thousand in
December, which was a 9% decrease from December last year. The load factor was
66.5%, increasing by 3.6 percentage points compared to December 2011. Sold
block hours in charter flights decreased by 17% in December. The decrease is
due to one less aircraft being deployed in charter cargo flights than last year
as well as decreased utilization due to maintenance. Cargo transport decreased
by 2% as compared to December last year. The number of available room nights
was up by 28% from previous year. The room utilization was 46.1%, 2.5
percentage points higher than in December 2011.