Traffic Data December 2016 The Company carried 2

The Company carried 220 thousand passengers on international flights in December. The number of passengers was up by 19% as compared to December last year. The capacity increase totalled 24% between years. The passenger load factor was 77.2% compared to 79.2% in December 2015. Passengers on regional flights were close to 21 thousand in December, increasing by 17% between years. In 2016 The Company started flights to Aberdeen in Scotland on Bombardier Q400 aircraft. Until now the Aberdeen flights have been included in international traffic data but from December 1^st they will be accounted for with regional flights.  Year to date numbers have been adjusted accordingly. Regional capacity increase in December was 59% compared to last year, main reason being the Aberdeen flights. Sold block hours in charter flights remained the same between years in December. Cargo transport decreased by 3% year-on-year. The room utilisation at the Company’s Hotels was 67.9%, compared to 60.7% in December last year.

The Company has never carried more passengers on international flights than in 2016.  The total number of passengers carried was nearly 3.7 million, an 20% increase from previous year. The passenger load factor was 82.2%, decreasing by 1 percentage point from 2015 which was a record year. The total number of passenger on regional flights was 323 thousand, increasing by 9%. Sold block hours on charter flights increased by 1% and cargo transport was up by 5%. The room utilisation at the Company’s Hotels for the total year was 81.5% and has never been higher.

For further detailed information please contact:

Bogi Nils Bogason, CFO, Icelandair Group tel: + 354 665-8801 Íris Hulda Þórisdóttir, Director Investor Relations, Icelandair Group tel: + 354 840-7010