11% growth in international flights in 2018 N

• Number of passengers projected at 4.5 million
• Available seat kilometres set to increase by 11% between years
• New Boeing 737 MAX jets introduced

Icelandair's Route Network in 2018 is set to expand by 11% over this year’s schedule. The number of passengers in 2018 is projected at 4.5 million, up by four hundred thousand from the current year. Flights will be introduced to three new destinations, Cleveland and Dallas in the United States and Dublin, Ireland, in addition to Berlin, which will be added to the Route Network this coming November. The number of flights to current destinations in North America and Europe will also be increased.

Early next year, Icelandair will introduce three new 160-seat Boeing 737 MAX 8 aircraft, bringing the number of aircraft in use to 33 next summer, 26 of the type 757 and four of the type Boeing 767-300, in addition to the new 737s. This growth will contribute to the ongoing strengthening of the tourist industry in Iceland, thereby reinforcing the continued growth and development of Icelandair Group's other operations.

Available seat kilometres are projected to grow by 11% between years, with the number of flights on international routes increasing by 10%. The difference in percentages is explained by the proportionally greater increase in flights to North America than to Europe.

Icelandair has introduced a new travel option, Economy Light, which enables customers to travel at a lower price, without the inclusion of a luggage allowance. Passengers booking on Economy Light will enjoy the same services on board as other passengers, with 10 kg of carry-on baggage included.

Björgólfur Jóhannsson, CEO of Icelandair Group: "We are continuing to focus on profitable organic growth in the Company's international flights next year, in continuation of the growth of recent years. With the new option of Economy Light, we are expanding the range of our services to meet more diverse customer needs. Over the next four years we will be taking delivery of a total of 16 Boeing MAX aircraft. Their introduction will open a variety of opportunities for us to continue developing new markets and increasing our number of connecting flight options still further."

For further information, please contact:

Björgólfur Jóhannsson President and CEO, Icelandair Group, tel. +354-896-1455. Bogi Nils Bogason, CFO, Icelandair Group, tel. +354-665-8801. Birkir Hólm Guðnason, CEO Icelandair, tel. +354-864-7177.