Financial Results for Q3 2007


• Net Q3 profit 2007 was ISK 2.1 billion compared to a net profit of ISK 2.6
billion in Q3 2006. 
• Total revenue for Q3 2007 was ISK 20.0 billion compared to ISK 19.5 billion
for Q3 2006, an increase of 3%. 
• EBITDAR for Q3 2007 was ISK 5.3 billion compared to ISK 5.5 billion for Q3
2006. 
• EBITDA for Q3 2007 was ISK 3.7 billion compared to ISK 4.4 billion for Q3
2006. 
• EBIT was ISK 2.8 billion in Q3 2007 compared to ISK 3.7 billion in Q3 2006. 

• Total Assets at the end of Q3 ISK 69.9 billion compared to ISK 76.6 billion
at year end 2006. 
• Equity ratio is 37% at the end of Q3 compared to 34% at year end 2006. 
• Net operating cash ISK 3.9 billion at the end of Q3 2007 compared to ISK 6.4
billion at the end of Q3 2006. 

• Net profit in first 9 months in 2007 was ISK 1.0 billion compared to ISK 3.2
billion in first 9 months 2006. 
• Total revenue for first 9 months 2007 was ISK 48.1 billion compared to ISK
43.6 billion for first 9 months 2006, an increase of 11%. 
• EBITDAR for first 9 months 2007 was ISK 8.9 billion compared to ISK 8.5
billion for first 9 months 2006. 
• EBITDA for first 9 months 2007 was ISK 5.0 billion compared to ISK 5.7
billion for first 9 months 2006. 
• EBIT was 2.6 billion ISK in first 9 months 2007, but was ISK 3.7 billion in
the first 9 months of 2006. 


Jón Karl Ólafsson, CEO of Icelandair Group, comments:

"The profit of Icelandair Group in Q3 2007 is below expectations, but our
EBITDA profits for the year 2007 will be one of the best in our history or 5.6
billion ISK. 

We will not reach our goal of higher profits in 2007, than in 2006, the best
year in the company's history. The main reasons are lower passenger revenue
from increased capacity in Icelandair scheduled operations, caused by, among
other things, the strong ISK and pressure on yields. Furthermore, the strong
ISK also influenced export from Iceland and affected cargo revenue and the
project status for cargo charter operations was worse than predicted. 

There are exciting times ahead for the Group. In Q3 Icelandair Group finalized
the acquisition of the Czech airline, Travel Service, and the Latvian Charter
airline Latcharter, two fast growing Central-European airlines which both
broaden the scope and strengthen the foundation of the Group. These two
profitable airlines will operate at least 23 aircraft and with a turnover of
ISK 23-25 billion account for a quarter of the Group's expected total
turnover.”

Attachments

icelandair group hf 30 9 2007-obx_1.pdf icelandair_group_q3_2007_en.pdf