Icelandair Group Announcement: Traffic Data August 2012

The Company carried 271 thousand passengers on international flights in August,
which is a record for the month of August. The number of passengers was up by
9% as compared to last year. The capacity increase compared to August 2011 was
12%. The passenger load factor was 84.9% compared to 85.3% last year. The
number of passengers on the Trans-Atlantic market increased most or by 19%
compared to August in previous year. Passengers on this market were 50% of
total passengers carried on our international flights.

Passengers on regional flights and Greenland flights were 36.9 thousand in
August, which was a 3% decrease from August last year. The load factor was
69.3%, decreasing by 4.9 percentage points compared to August 2011. Sold block
hours in charter flights decreased by 11% in August. The decrease is due to
one less aircraft being deployed in charter cargo flights than last year. Cargo
transport increased by 5% as compared to August last year. The number of
available room nights at our hotels was up by 5% from previous year. The room
utilization was 88.1%, 5.8 percentage points higher than in August 2011.