RECORD UNIT REVENUES IN THE FIRST QUARTER OF 2023

• Operating income of USD 233.3 million increasing by 47% year-on-year
• Strong revenue generation in the passenger network with a record Q1 RASK of 7.6 US cents
• Severe weather disruptions in January and February negatively affected results
• Cargo results below expectations due to challenging market and operational conditions
• EBIT loss of USD 61.6 million
• EBIT ratio improving by 10.3 percentage points between years
• Loss of USD 49.1 million compared to USD 49.7 million last year
• Investments related to peak season included in operating expenses
• Capacity increased by 38% year-on-year in the passenger network
• 664 thousand passengers carried; 57% more than in Q1 last year
• Load factor of 78.2%, the highest in Q1 since 2016
• Strong liquidity position of USD 458 million
• Forward bookings for next six months more than 40% over last year

BOGI NILS BOGASON, PRESIDENT & CEO

"The performance of our passenger route network improved significantly in the first quarter, driven by
strong revenue generation with record unit revenue and improved utilization and yields. As we continued
to increase capacity, transporting almost 60% more passengers than in the same period last year, we
also reached the highest Q1 load factor in seven years. The market to Iceland was particularly strong
accounting for 43% of total passengers, significantly contributing to the Icelandic tourist industry during
the off season.

However, fuel prices, weather-related disruptions and Inflation impacted the results more than expected.
In addition, the performance of our cargo operation was below projections due to unfavorable market
conditions and irregularities in our cargo flight schedule. The market outlook for cargo remains
challenging and our focus over the next weeks and months will be on restoring profitability. Our aircraft
leasing business performed well in the quarter and is expected to continue to deliver strong results
throughout the year.

The prospects for the remainder of the year are positive, despite continued inflation and some
challenges in our operating environment. Our flight schedule this summer will be the largest in
Icelandair’s history, with 54 destinations, of which four are new. Demand for travel is robust with forward
bookings for the next six months significantly higher than last year.

I would like to thank all our employees for their hard work as we prepare for the high season. Our training
center is currently running almost 24/7 and it is a great pleasure to welcome around 1,100 new
employees to our outstanding team to realize the record flight schedule in the summer.

Looking to the longer term, we are well-positioned to seize the opportunities ahead with our unique route
network based in the strategic location of Iceland, our extensive commercial infrastructure and strong
financial position. Underpinning our future growth is our decision to acquire Airbus A321XLR aircraft,
which will not only allow us to further develop our business model on the transatlantic market but also
provide opportunities to enter new and exciting markets.”

WEBCAST 28 APRIL 2023
An investor presentation will be webcast in relation to the publication of the results at 8:30 GMT on
Friday, 28 April 2023, at http://icelandairgroup.is. Bogi Nils Bogason, President & CEO of Icelandair
Group, and Ivar S. Kristinsson, CFO, will present the Company’s results and answer questions. The
presentation and Q&A will take place in English.


Contact information

Investors: Íris Hulda Þórisdóttir, Director of Investor Relations. E-mail: iris@icelandair.is
Media: Ásdís Pétursdóttir, Director of Communications. E-mail: asdis@icelandair.is

Attachments

• Icelandair Group hf. Q1 2023
• Pressrelease Q1 2023