Due to extraordinary circumstances concerning Sterling in Denmark filing for bankruptcy Icelandair Group and the airline Icelandair announce the following:

The Investment Company Fons is owner of Sterling and Iceland Express. The major shareholders of Sterling do NOT hold Icelandair Group shares. There is no ownership or operational connection between Fons and Icelandair Group. There are no connections between the airline Sterling in Denmark and Icelandair Group, in fact Sterling and sister company Iceland Express are in direct competition with Icelandair and sister companies. Icelandair and Iceland Express are competitors and no shareholder connection between the two companies at all.

Icelandair Group is an international Group of 12 companies with worldwide operations and an aviation history spanning over 70 years. Revenue is generated from different geographic areas and service sectors, and only 25% of the Group‘s revenue are in Icelandic kronas. The Group does business in many currencies but the bulk of the turnover is in Euros, Dollars, and Czech kronas. Falling world fuel prices in the past weeks have a favorable effect on the operations of the Groups’ companies.

Sign.
Björgólfur Jóhannsson CEO Icelandair Group
Birkir Hólm Gudnason CEO Icelandair

For further information on Icelandair Group financial information and press releases please check our website at www.icelandairgroup.com.

Icelandair Group financial results for the first 8 months of 2008.

The total turnover of the Group is ISK 72 billion, an increase of 68% from the same time last year
EBITDA is ISK 6,3 billion, an increase of 43% from the same time last year
EBIT is ISK 3.9 billion, an increase of 58% from the same time last year
EBT is ISK 2,6 billion, an increase of 169% from the same time last year
Cash position at the end of August is ISK 6,7 billion

Contact Information

Gudjon Arngrimsson

VP Corporate Communications

Icelandair

Contact via E-mail