Icelandair Group hf.: Transactions in relation to share repurchase program

In Week 11 2018, Icelandair Group hf. (The "Company”) purchased 25,201,160 of its own shares. The total purchase price is ISK 388,451,312, as detailed below:

 Prior to the aforementioned share repurchase, the Company owned 160,657,337 of its own shares but now owns 185,858,497 of its own shares, corresponding to 3.72% of the Company‘s total share capital.

The trade is in accordance with a share repurchase program authorized by the Annual General Meeting on the 3^rd of March 2017 and has been put in motion according to an announcement published in Nasdaq Iceland on the 1^st of March 2018.

Icelandair Group hf. has acquired 46,398,497 of its own shares under the program which corresponds to 0.93% of the total share capital and the total value of repurchased shares amounts to ISK 727,195,384. According to the program, The Company may not purchase more than 50,000,000 of its own shares, corresponding to 1.00% of the total share capital. The total consideration for shares under the program shall not exceed ISK 750 million. The share repurchase program is valid until September 3^rd 2018 or until the total allowed amount of shares are purchased by the Company, whichever happens first.

The share repurchase program is executed in accordance with Chapter VIII. of Act No. 2/1995 on Public Limited Companies and Chapter II of the Annex to Regulation No. 630/2005 on Inside Information and Market Abuse, with later amendments.

For further information, please contact:

Bogi Nils Bogason, CFO
bogi@icelandairgroup.is
Tel: +354 665 8801