Icelandair Group organic growth continues

Losses after taxes USD 18.3 million, as compared to USD 13.2 million in the preceding year

Performance in the quarter exceeded management projections

EBITDA negative by USD 8.3 million, as compared to negative USD 3.0 million last year

Passenger revenues increased by 24% between years

Total revenue increased by 10%

Equity ratio was 32% at the end of March

Net cash provided by operating activities USD 78.5 million, as compared to USD 86.1 million in the

preceding year

Björgólfur Jóhannsson, President and CEO:

“Icelandair Group’s performance over the quarter was better than our budget projected and estimates of continued growth materialised. Capacity on international flights increased by just short of a quarter in the first three months of the year, and the increase in passenger numbers over the same period was 18%. The greatest increase was in the number of passengers on the North Atlantic market, about 40%. The number of passengers in the tourist market to Iceland also increased significantly from last year, with a positive impact for all tourist services in Iceland. The Group’s freight activities have shown a turnaround. Freight charter projects have been downsized systematically, and the focus has been shifted to scheduled air freight services, which has returned good results.

At the start of the year we issued an EBITDA forecast for 2013 in the range of USD 115-120 million. The performance in the first quarter was in excess of the forecast, and in addition operating prospects are generally positive. Based on adjusted assumptions, EBITDA for the year is now projected at USD 122-127 million.”