Icelandair Group hf.: Agreement signed with the Icelandic Pilots Association

Icelandair Group hf., Icelandair ehf. and The Icelandic Airline Pilots
Association (FIA) have signed a collective-bargaining agreement which is valid
until 31 December 2019. The agreement will now be presented to FIA members who
will vote on the agreement. 

Bjorgolfur Johannsson, CEO of Icelandair: "For this round of negotiations, both
parties used different approach than from before. The goal was to secure
competitive wages for our pilots in an international comparison, while
strengthening the competitiveness of the Company. With this agreement, we have
taken constructive steps which we are satisfied with. Equally as important, the
parties to the agreement have agreed to continue their cooperation for the
furthering of our common goals." 

Ornolfur Jonsson, Chairman of FIA: "Pilots are fully aware that the competitive
conditions of the Company are ever-changing. During the last few years, demand
for the services of pilots has increased. We are pleased that with this
agreement we have managed to strengthen the mutual benefit of Icelandair and
FIA. We believe it's a new beginning of a common path of Icelandair and FIA." 

Further information:

Bjorgolfur Johannsson, President and CEO
[e-mail]
+ 354 896 1455

Bogi Nils Bogason, CFO
[e-mail]
+ 354 665 8801