* The total turnover of the Company was ISK 14 billion, increasing by 18% from the corresponding quarter of last year * Owing to seasonal fluctuations in flights and tourism, results are normally negative in the first quarter, and at this time EBITDA was negative by ISK 857 million * EBIT was negative by ISK 1.7 billion * Losses after taxes amounted to ISK 1.7 billion, as compared to ISK 1.2 billion for the corresponding period of the preceding year. * No sales profit of aircraft entered into books in the first quarter 2008, 1.2 billion in the first quarter 2007. * Core operations stronger * Assets amounted to ISK 73.8 billion at the end of Q1, as compared to ISK 66.8 at year-end 2007 * The equity ratio was 34% * Net cash from operations was ISK 3.1 billion * Icelandair Group's organisation chart has been streamlined, Sigþór Einarsson becomes deputy CEO * New managers have been appointed at Icelandair and restructuring projects have been launched * The first Boeing 787 Dreamliner aircraft has been leased out Björgólfur Jóhannsson CEO of Icelandair Group: “Icelandair's operation in the first quarter was somewhat better than anticipated in much more difficult conditions than last year. The Company's fuel costs have increased by just short of ISK one billion from the corresponding period of 2007, and in addition gains on sold assets amounting to ISK 1.2 billion were entered in the book in Q1 of last year. Our backlog in charter operations is good, and the same is true of the booking position in Scheduled Airline. However, we foresee continued high fuel prices, and we are working on the assumption that these prices, together with the uncertain economic climate, will impact demand in airline services and tourism. One of our principal challenges now is to react to the changed circumstances and prepare the Company for a new future. We are in the process of adapting the companies within Icelandair Group to the new reality through streamlining and improved flexibility. We have simplified the structure of the Group, and Sigþór Einarsson becomes the Groups´ deputy CEO. The recently appointed CEO of Icelandair, Birkir Hólm Gudnason, has already made changes in Icelandair and there are further changes ahead. An agreement has been concluded on leasing the first Boeing 787 Dreamliner that the company has on order. Icelandair Cargo growth plans have been discontinued. A decision has been made for the company to re-enter the travel agency market. Short-term wage contracts have been negotiated with airline staff. Through these and other actions we are solidifying our core operations, reducing risk and strengthening Icelandair Group for the future.