Icelandair Group hf.: Traffic Data February 2018

The number of passenger on international flights was 191 thousand in February
and decreased by 5% compared to February last year. The decrease is mainly due
to less passengers on the tourist market to Iceland.  The demand was not in
line with the total capacity increase on that market. The total capacity
decreased by 1% and the passenger load factor was 74.3% compared to 75.9% in
February last year. 

The number of passengers on domestic and regional flights were just short of 22
thousand, decreasing by 3% compared to February last year. There was a great
deal of weather disruptions during the month, and thus a significant number of
domestic flights were cancelled.  The capacity in February was 11% higher than
in February last year, due to flights to Belfast in cooperation with
Icelandair, which started in June 2017 and flights on the route between
Keflavik and Akureyri which started in the end of February 2017.  The passenger
load factor was 62.6%. 

Sold block hours in charter flights increased by 44% between as a result of new
long-term assignments. Freight increased by 24% due to more import to Iceland,
but a strike in the seafood industry in Iceland last year, which effected the
export of fish negatively, also affects the comparison. The number of sold room
nights at the Company's Hotels was down by 5% from last year. The main reason
is closing of hotel rooms in Icelandair Hotel Natura due to renovation.  The
number of sold hotel rooms increased between years at all other hotels. The
room utilisation was 81.6% compared to 85.6% in February 2017. 

INTERNATIONAL FLIGHTS      FEB 18   FEB 17   CHG (%)   YTD 18   YTD 17   CHG (%)
--------------------------------------------------------------------------------
Number of Passengers      190,720  200,264       -5%  399,646  405,998       -2%
Load Factor                 74.3%    75.9%  -1.6 ppt    73.1%    74.7%  -1.6 ppt
Available Seat KM           767.5    772.8       -1%  1,675.5  1,628.0        3%
 (ASK'000,000)                                                                  
                                                                                
DOMESTIC AND REGIONAL      FEB 18   FEB 17   CHG (%)   YTD 18   YTD 17   CHG (%)
 FLIGHTS                                                                        
--------------------------------------------------------------------------------
Number of Passengers       21,850   22,494       -3%   44,149   42,719        3%
Load Factor                 62.6%    68.0%  -5.4 ppt    60.0%    65.1%  -5.1 ppt
Available Seat KM            12.5     11.3       11%     26.5     22.4       18%
 (ASK'000,000)                                                                  
                                                                                
CHARTER FLIGHTS            FEB 18   FEB 17   CHG (%)   YTD 18   YTD 17   CHG (%)
--------------------------------------------------------------------------------
Fleet Utilisation          100.0%   100.0%   0.0 ppt   100.0%    99.1%   0.9 ppt
Sold Block Hours            2,694    1,871       44%    5,709    3,718       54%
                                                                                
CARGO                      FEB 18   FEB 17   CHG (%)   YTD 18   YTD 17   CHG (%)
--------------------------------------------------------------------------------
Freight Tonne KM            9,337    7,525       24%   19,854   14,922       33%
 (FTK'000)                                                                      
                                                                                
HOTELS                     FEB 18   FEB 17   CHG (%)   YTD 18   YTD 17   CHG (%)
--------------------------------------------------------------------------------
Available Hotel Room       25,116   25,116        0%   52,923   52,923        0%
 Nights                                                                         
Sold Hotel Room Nights     20,503   21,511       -5%   39,211   40,745       -4%
Occupancy of Hotel Rooms    81.6%    85.6%  -4.0 ppt    74.1%    77.0%  -2.9 ppt

For further 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

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