JULY 27TH, 2015

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."