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Name: ICELANDAIR
7JetSet7 Code: ICE
Status: Operational
Region: EUROPE
City: REYKJAVIK
Country: ICELAND
Employees 1230
Web: icelandair.net
Email: sales@icelandair.is
Telephone: +354 5050 300
Fax: +354 5050 350
Sita: REKBZFI
Background
(definitions)

Click below for data links:
ICE-1998-07-A
ICE-1998-07-B
ICE-2004-02 757-27B
ICE-2004-05 JETGREEN-A
ICE-2004-05 JETGREEN-B
ICE-2004-07 -1ST6MTHS-2004
ICE-2004-07 LOFTLEIDER
ICE-2005-01 BAB-757 MRO
ICE-2005-12-FL OWNER
ICE-2006-01 757 WINGLETS-B
ICE-2006-01-757 WINGLETS-A
ICE-2006-02 FL OWNER-A
ICE-2006-02 FL OWNER-B
ICE-2006-02 FL OWNER-C
ICE-2008-01 2007-STATS
ICE-2009-03 BADNEWS
ICE-2010-04-VOLCANIC ERUPTION
ICE-2010-04-VOLCANIC ERUPTION-A
ICE-2010-04-VOLCANIC ERUPTION-B
ICE-2010-04-VOLCANIC ERUPTION-C
ICE-2010-04-VOLCANIC ERUPTION-D
ICE-2011-05-VOLCANO ERUPTION
ICE-2012-01 - 2011 RECORD PASSENGERS
ICE-2015-08 - Update-A.jpg
ICE-2015-08 - Update-B.jpg
ICE-2015-08 - Update-C.jpg
ICE-2015-08 - Update-D.jpg
ICE-2015-08 - Update-E.jpg
ICE-2015-08 - Update-F.jpg
ICE-2015-08 - Update-G.jpg
ICE-2015-08 - Update-H.jpg
ICE-2015-08 - Update-I.jpg
ICE-2015-08 - Update-J.jpg
ICE-2016-05 - 757 Iceland to Montreal.jpg
ICE-Cabin Attendant - 2015-04.jpg
ICE-CARGO
ICE-HAPPY HOLIDAYS 2009-12
ICE-LOGO
ICE-MAP
ICE-ROUTE MAP
ICE-VISIT ICELAND

FOUNDED IN 1937 AND ICELANDAIR STARTED OPERATIONS IN 1973. FLAG CARRIER. FORMERLY ICELANDAIR-FLUGFELAG ISLANDS HF, AND LOFTLEIDIR HF. DOMESTIC & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER AND CARGO, JET AIRPLANE SERVICES.

ADDRESS:
REYKJAVIK AIRPORT
IS-101 REYKJAVIK, ICELAND

Iceland (the Republic of Iceland) was established in 1918, covers an area of 103,000 sq km, its population is 0.3 million, its capital city is Reykjavik, and its official language is Icelandic.

APRIL 1937: ICELANDAIR (ICE) WAS FORMED THROUGH THE MERGER OF FLUGFELAG ISLANDS (THE ORIGINAL ICELANDAIR) AND OPERATING DOMESTIC AND EUROPEAN FLIGHTS.

JUNE 1944: LOFTLEIDIR ICELANDIC AIRLINES WAS FORMED AND STARTED OPERATING LOW-COST TRANSATLANTIC SERVICES.

OCTOBER 1979: AFTER THE MERGER IT WAS A HOLDING COMPANY FOR THE 2 AIRLINES, BUT ASSUMED ALL OPERATING RESPONSIBILITIES

JANUARY 1993: TO NEW YORK, BALTIMORE, ORLANDO, FORT LAUDERDALE, AMSTERDAM, HAMBURG, STOCKHOLM, FRANKFURT, PARIS, FAROE ISLAND, MILAN, BARCELONA, VIENNA, LUXEMBOURG, COPENHAGEN, OSLO, LONDON, GLASGOW, ZURICH, COLOGNE, & SALZBURG.

1992 = +5.6% (RPK) (TRAFFIC), +4.4% PASSENGERS (PAX), -12.5% FREIGHT TRAFFIC (FTK).

JANUARY 1994: 1993 = -2.4% (RPK) TRAFFIC.

STUDYING 737 EXTENDED TWIN-ENGINE OPERATIONS (ETOPS) TO HALIFAX.

1,273 EMPLOYEES (INCLUDING 142 FLIGHT CREW (FC), 192 CABIN ATTENDANTS (CA), 155 MAINTENANCE TECHNICIANS (MT).

115 757 (ETOPS) FLIGHTS/MONTH OVER NORTH ATLANTIC.

JANUARY 1995: 1994 = +$9.1 MILLION (NET PROFIT) (-$2.7 MILLION): +28.7% PAX, 70.2% LF (LOAD FACTOR) (66%) 6TH HIGHEST IN ASSOCIATION OF EUROPEAN AIRLINES (AEA).

SEPTEMBER 1995: +1 ORDER (JANUARY 1996) 757-200ER (RB211-535E4).

JANUARY 1996: 1995 = +4.0% (RPK), +4.1% (PAX), +5.4% (FTK).

737-400 (PW166) LEASED TO MAERSK AIR (MRS) UNTIL APRIL 1996. 1 757-2Q8, (ILF) LEASED.

MARCH 1996: 1 757-200 DELIVERY.

APRIL 1996: NEW MAINTENANCE FACILITY DOING CONTRACT MAINTENANCE FOR 737, 757 & F 50'S. CONTRACT FOR 2 +2 MAERSK AIR (MRS) F 50 "D" CHECKS & 2 (SAS) F 50 "D" CHECKS.

1 737-400 (CFM56-3C1), EX-MAERSK AIR (MRS) DELIVERY.

JULY 1996: (http://www.centrum.is/icelandair).

DECEMBER 1996: MARKETING AGREEMENT WITH SOUTHWEST AIRLINES (SWA) FOR CLEVELAND TO BALTIMORE TO EUROPE.

171 (ETOPS) (757) FLIGHTS/MONTH ON NORTH ATLANTIC

MARCH 1997: ICELANDAIR (ICE) ESTABLISHED A SUBSIDIARY, AIR ICELAND TO OPERATE DOMESTIC AND SELECTED SHORT HAUL ROUTES.

757-27B (24135) RETURNED TO AIR HOLLAND (HOL).

APRIL 1997: 1,400 EMPLOYEES.

FISCAL YEAR (FY) 1996 = +$10 MILLION (+$10 MILLION).

JUNE 1997: OK FOR ROUTE TO MINNEAPOLIS IN 1998 (6TH USA GATEWAY, AND 1ST OUTSIDE USA EAST COAST).

AT PARIS AIR SHOW, ANNOUNCES $272 MILLION, 2/8 ORDERS (JANUARY 1998) 757-200'S (RB211-535E4), & 2 ORDERS (APRIL 2001) 757-300'S (RB211-535E4).

JULY 1997: CELEBRATES 60TH YEAR ANNIVERSARY!

185 120 MINUTES (ETOPS) 757 FLIGHTS/MONTH OVER NORTH ATLANTIC.

AUGUST 1997: COOPERATIVE PACT WITH SOUTHWEST AIRLINES (SWA) EXTENDED TO INCLUDE CHICAGO MIDWAY, LOUISVILLE, AND PROVIDENCE, RHODE ISLAND THROUGH BALTIMORE. SPECIAL $298 ROUND TRIP, FOR 4 USA CITIES TO LUXEMBOURG.

IN APRIL 1998, TO MINNEAPOLIS (757-200, 22C, 167Y).

SEPTEMBER 1997: 1 F 50 (PW125B), EX-MAERSK AIRLINES (MRS).

OCTOBER 1997: NOW 6 NORTH AMERICAN AND 18 EUROPEAN DESTINATIONS.

1 737-300 (23811), EX-LUFTHANSA (DLH), (ILF) 4 YEAR LEASED.

120 MINUTES (ETOPS) OVER NORTH ATLANTIC: 165 737 FLIGHTS; 187 757 FLIGHTS/MONTH.

737-3Q8C (23766), EX-AIR BELGIUM (ABL), (ILF) LEASED, UNTIL APRIL 1998.

DECEMBER 1997: HEAVY MAINTENANCE CONTRACT FOR 4 AIR HOLLAND (HOL) 757'S, AND 5 TRANSWEDE (TNS) 757'S, FOR 3 YEARS.

JANUARY 1998: 1 757-208 (28989 "BRYNDIS") DELIVERY.

4 OF 5 737'S FLYING 18 FLIGHTS/MONTH 120 MINUTES (ETOPS) OVER NORTH ATLANTIC. 4 757'S FLYING 195 FLIGHTS/MONTH 120 MINUTES (ETOPS) OVER NORTH ATLANTIC.

APRIL 1998: 1,400 EMPLOYEES.

JUNE 1998: 757-236 (449-25620) OPERATED FOR GREENLANDAIR (GRL), COPENHAGEN TO NUUK, GREENLAND, WET-LEASED. THIS AIRPLANE IS ON (ICE)'S AIR OPERATING CERTIFICATE (AOC). 3 DAYS/WEEK, THIS AIRPLANE IS WET-LEASED TO SWEDISH COMPANY NOVAIR (NOO) FOR CHARTER FLIGHTS, SWEDEN TO THE MEDITERRANEAN.

JULY 1998: (ETOPS) FLIGHTS/MONTH (& TOTAL) OVER ATLANTIC: 4 737-300'S
/-400'S (120 MINUTES) = 22 (328); 5 757 (120 MINUTES) = 190 (12,104).

AUGUST 1998: 50TH ANNIVERSARY! - "THE HIPPIE AIRLINE THAT GREW UP." ICELAND'S POPULATION IS 270,000. 10% OF LANDMASS IS COVERED WITH ICE & 75% IS CONSIDERED UNINHABITABLE. OWNS 65% OF DOMESTIC AIR ICELAND: 3 F 50'S, 3 FAIRCHILD METROS, AND 2 DHC-6 TWIN OTTERS, STAFF 200 INCLUDED IN (ICE)'S 2,200 EMPLOYEES, CARRIES 280,000 PAX.

(ICE) PROJECTS TO CARRY 1.3 MILLION PASSENGERS.

SEPTEMBER 1998: FISCAL YEAR (FY) 1997 = -$4.15 MILLION (+$9.47 MILLION).

OCTOBER 1998: STARTS FIRST TRANSATLANTIC, ALL-CARGO SERVICE FROM BOSTON LOGAN AIRPORT. THIS IS "GREAT NEWS FOR NEW ENGLAND IMPORTERS OF SEAFOOD AND FOR EXPORTERS" TO REYKJAVIK (737-3S3F).

1ST 6 MONTHS = 1.67 BILLION (RPK) (+8.8%), 70.2% LF (-.5), 27.77 MILLION (FTK) (-6.7%), 580,000 (PAX) (-9.8%).

DECEMBER 1998: +2 ORDERS 757-200'S ($131 MILLION) (MAY CONVERT TO 757-300).

JANUARY 1999: DEFERS DECISION TO LAUNCH 737F TO UK AFTER INTRO OF 757 TO GLASGOW, SCOTLAND (6/WEEK).

737-408 (24804) SOLD TO TRANS-SPORT (SPORTSJET), PHOENIX.

FEBRUARY 1999: KRISTINN HALLDORSSON, DIRECTOR FLEET MANAGEMENT; & VALDIMAR SAEMUNDSSON, DIRECTOR TECHNICAL OPERATIONS.

APRIL 1999: 1,774 EMPLOYEES (INCLUDING 210 FLIGHT CREW (FC), 360 CABIN ATTENDANT (CA), & 233 MAINTENANCE TECHNICIANS (MT)).

(http://www.icelandair.is). (info@icelandair.is). SITA: REKBZFI.

757-208 (NT862, TF-FIO) DELIVERY (RB211-535E4B).

MAY 1999: 1998 = +$2 MILLION (-$4 MILLION): 1.3 MILLION PASSENGERS (PAX) (+18%).

JUNE 1999: 737-400 (25063) SOLD TO BOULLIOUN (BOU), & LEASED BACK.

SEPTEMBER 1999: 1ST 8 MONTHS = 2.57 BILLION (RPK) (+2%), 39.9 MILLION (FTK) (+12%), 942,000 (PAX) (+7%).

1 757-200PF (RB211-535E4) (24456), EX-CHALLENGE AIR CARGO (CHA), (AWW) 5 YEAR LEASED. 737-3S3QC (23811), RETURNED TO (ILF). 757-200PF OPERATED LIEGE - KEFLAVIK - NEW YORK, PARTLY ON BEHALF OF TNT (TNB).

OCTOBER 1999: MAINTENANCE CENTER: CONTACT: VIKTOR VIGFUSSON, MANAGER BUSINESS & ADMINISTRATION (viktor@icelandair.is), HAS 12,500 SQ M HANGAR WITH 2 BAYS & BACKSHOPS FOR 737'S & F 50'S "A" - "D" CHECKS & 757'S "A" - "C" CHECKS, INCLUDING AVIONICS UPGRADES, COMPOSITES REPAIRS, CORROSION PREVENTION & CONTROL PROGRAM (CPCP), AND SHEET METAL WORK.

NOVEMBER 1999: NEW CORPORATE IMAGE WITH LOGO OF GOLDEN WINGS ON A DEEP BLUE BASE. GOLDEN YELLOW STANDS FOR THE FIERY DETERMINATION, AND THE GOLDEN LIGHT, OF THE ICELANDIC SUNSETS, WHILE THE DEEP BLUE REPRESENTS QUALITY, AND NORDIC ASSOCIATIONS.

1 757-200F HAS HAD HALF OF ITS CAPACITY PURCHASED BY (TNT) FOR SCHEDULED FREIGHTER SERVICE BETWEEN LIEGE, BELGIUM, ICELAND, AND NEW YORK.

SELLS 3 737-400'S, AND LEASES BACK. PLANS TO REPLACE THEM WITH 4 NEW 757'S THROUGH 2003.

FEBRUARY 2000: IN MAY 2000, TO DUSSELDORF.

1 757-200 (RB211-535E4) (24838), EX-CONDOR (CDF), AVIATION INVEST INTERNATIONAL LEASED.

MARCH 2000: 1999 PRE-TAX = +$4.3 MILLION: 1.3 MILLION PAX INTERNATIONAL; 71.4% LF (-2.5); 24K TONS CARGO (+26.4%). 1999 = 3.74 BILLION (RPK) (-.8%); 75.90 MILLION (FTK) (-11%); 1.34 MILLION (PAX) (+3%).

APRIL 2000: 1,769 EMPLOYEES (INCLUDING 209 FLIGHT CREW (FC), 347 CABIN ATTENDANTS (CA), & 212 MAINTENANCE TECHNICIANS (MT)).

1ST QUARTER = 696.06 MILLION (RPK) (+2%); 29.7 MILLION (FTK) (+243%); 252,000 (PAX) (+17%).

1 757-200 WET-LEASED TO CONDOR (CDF) ON WEEKENDS (THURS - SUNDAY), MAY - OCTOBER 2000, FOR OPERATIONS FRANKFURT - BALEARIC & CANARY ISLANDS. 737-408 (24352) RETURNED TO SUNROCK (SNR), LEASED TO BRUSSELS INTERNATIONAL (BXI). 757-208 DELIVERY.

JULY 2000: THIS IS THE 1,000 ANNIVERSARY OF LEIF ERIKSSON'S DISCOVERY OF NORTH AMERICA.

1999 = +$20.8 MILLION (+$6.7 MILLION): 3.74 BILLION (RPK) (-.8%); 75.9 MILLION (FTK) (-11%); 1.35 MILLION (PAX) (+3%); 1,769 EMPLOYEES.

(http://www.icelandair.com).

757-27B (24838, TF-FIW) HAS UNIQUE ICELANDAIR "HOLIDAYS" TITLES. PLANS TO CONVERT TO FREIGHTER, ITS NEW 757-200 AND REPLACE ITS LEASED 737-300F. PLANS TO ORDER 1 757-200F, FOR 2002, OR 757-300F IF OFFERED.

SEPTEMBER 2000: 1ST 6 MONTHS = 421.87 MILLION (RPK) (+13%); 90 MILLION (FTK) (+93%); 156,000 (PAX) (+12%).

NOVEMBER 2000: IN DECEMBER 2000, CODE SHARE WITH SCANDINAVIAN AIRLINES (SAS) TO ORLANDO, ADDING TO EXISTING BALTIMORE/WASHINGTON, BOSTON, AND MINNEAPOLIS.

1ST 9 MONTHS = +$4.5 MILLION (+$23 MILLION), DUE TO HIGHER FUEL COSTS, UNFAVORABLE EXCHANGE RATE, & RISING DOMESTIC COSTS.

DECEMBER 2000: 1ST 9 MONTHS = 3.07 BILLION (RPK) (+6%), 83.3 MILLION (FTK) (+703%), 1.16 MILLION (PAX) (+9%).

FEBRUARY 2001: 1 757-208 (30424, TF-FIV) DELIVERY.

MARCH 2001: 2000 = 3.93 BILLION (RPK) (+5%), 115.10 MILLION (FTK) (+748%), 1.48 MILLION (PAX) (+10%).

1 757-200 TO BE WET-LEASED FOR THE SUMMER 3 DAYS/WEEK TO AIR SCANDIC (SCZ), BASED IN MANCHESTER, UK.

APRIL 2001: 1,769 EMPLOYEES (INCLUDING 209 FLIGHT CREW (FC), 347 CABIN ATTENDANTS (CA), & 212 MAINTENANCE TECHNICIANS (MT)).

1 737-408 (24353) RETURNED TO (TCI), LEASED TO AIR GABON (GBN).

JUNE 2001: 1ST QUARTER = -$15.6 MILLION: 755.43 MILLION (RPK) (+9%), 30 MILLION (FTK) (+26%), 279,000 (PAX) (+11%).

DELAYS DELIVERY OF 1ST 757-300 1 YEAR, TO APRIL 2002.

SEPTEMBER 2001: IN DECEMBER 2001, WILL WET-LEASE 1 757-200 TO ST MAARTEN EXPRESS FOR CHARTER SERVICE TO NEW YORK.

OCTOBER 2001: FOLLOWING AIRLINE INDUSTRY DOWNTURN, (ICE) TO CUT -275 JOBS FROM 2,550.

NOVEMBER 2001: 1ST 9 MONTHS = 296.3M (RPK) (TRAFFIC) (-17.8%); -7% (ASK) (CAPACITY); 68.1% LF (LOAD FACTOR)(-9); 8.77 MILLION (FTK) (FREIGHT TRAFFIC) (-10.5%).

JANUARY 2002: 2001 = 3.71 BILLION (RPK) (-6%); 109.6 MILLION (FTK); 1.43 MILLION (PAX) (-4%).

FLUGLEIDIR-ICELANDIC GROUP BECAME A HOLDING COMPANY WITH 11 SUBSIDIARIES, OF WHICH ICELANDAIR (ICE) WAS THE LARGEST.

MARCH 2002: 1 757-300 DELIVERY.

APRIL 2002: SIGNS DEAL WITH WASHINGTON DC-BASED, AIR EXCHANGE, TO MARKET WET-LEASE SERVICES TO OTHER AIRLINES.

1,885 EMPLOYEES.

MAIN BASE: REYKJAVIK-KEFLAVIK INTERNATIONAL (KEF).

July 2002: 2001 = -$11.71 Million (-$11.84 Million): 3.71 Billion (RPK) (-6%); 1.43 Million (PAX) (-4%); 109.6 Million (FTK) (-49%); 1,885 employees (+17.8%).

757-27B (24838, TF-FIW) & 757-256 (26242, TF-FIR), wet-leased to Aeromar Airlines (AOO).

November 2002: 1st 9 months pre-tax = +ISK 4.09 Billion (+ISK 241 Million).

(http://www.icelandair.co.uk).

Extends (ILF) lease of 757-28A (26276) until March 2004.

December 2002: Restructures into 3 subsidiaries: international services; technical services; & finance. After the reorganization, the following companies will make up the Icelandair Group, together with the holding company: Icelandair; Icelandair Cargo; Icelandair Charter & Leasing; Air Iceland; Keflavik Airport Ground Services; Keflavik Airport Technical Services; Iceland Travel; Reykjavik Excursions; Icelandair Hotels; Icelandair Hertz Car Rental; & Fjarvakur Financial Services.

January 2003: Keflavik - Verona (weekly charter), til March 2003. In May 2003, Keflavik - Billund (757-200, Wednesdays). Keflavik - Milan (MXP).

March 2003: Parent Flugleidir 2002 Pre-tax = +Isk 3.3 Billion/+$36.9 Million (-Isk 1.21 Billion): 3.19 Billion (RPK) (-18.9%); 88.65 Million (FTK) (-21.8%).

In April 2003, to resume Keflavik - New York (JFK) (757).

1,885 employees.

757-236 (26245), ex-National Airways (NAB), Sunrock (SNR) leased.

May 2003: 767-3YOER (24953, TF-FIA), CIT (TCI) leased.

June 2003: Revives the "Loftledir" name for its cargo operations and will add 767's.

July 2003: 1,770 employees. (info@icelandair.is).

September 2003: In June 2004, Keflavik - Zurich (757-200, weekly).

2002 = +$28.7 Million (-$12.4 Million): 3.19 Billion (RPK) (-14.1%); -15% (ASK); 72,1% LF (+.7); 1.2 Million (PAX) (-11.7%).

2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billions):
135 (CYP) 3.31; 136 (ETH) 3.29; 137 (GOT) 3.22; 138 (MWX) 3.19; 139 (ICE) 3.19; 140 (XIH) 3.14; 141 (IBW) 3.09; 142 (COP) 3.03; 143 (ALG) 2.98; 144 (DAT) 2.97.

October 2003: In June 2004, Keflavik to Berlin (Schonefeld), Hamburg, and Munich (757-200, weekly). Other new cities for summer will be Helsinki and Madrid.

Canceled order for 2nd 757-300.

November 2003: In June 2004, Keflavik - Madrid (757-200, weekly).

757-23APF (24868), ex-Cameroon (CAM), Ansett Worldwide (AWW) leased, wet-leased to TNT (TNB).

December 2003: 757-256 (26242) returned from Avianca (AVI). 767-383ER (25365, TF-FIB), Aviation Investors leased, wet-leased to AV8Air (AV8).

January 2004: 2003 = +ISK 1.12 Billion/+$15.67 Million (+ISK 2.6 Billion/+$32.19 Million): 3.55 Billion (RPK) (-2.6%); 70.9% LF; 1.35 Million (PAX) (-3.7%); 75.36 Million (FTK) (-18.2%).

To operate 24 charter rotations from Boston to Providenciales, Puerto Plata, and La Romana, through May 2004, for GWV Travel (using 757-208, (TF-FIN). In June 2004, Keflavik - Helsinki (3/week).

February 2004: Intends to increase capacity (ASK)'s +12% in 2004, including +20% (ASK)'s in the summer including adding service to Berlin, Hamburg, Helsinki, Madrid, Milan, Munich, & Zurich.

767-3YOER (24953) wet-leased to Volare (VLR).

March 2004: Operates Dublin - Alicante/Malaga on behalf of Jet Green Airways with a 757.

April 2004: 1st Quarter = 587.6 Million (+19.4%); 217,000 (PAX) (+15%); 7.4 Million (FTK) (-2%).

737-3S3F (CFM56-3B2) (1445-23811, /87 30 16, TF-FIE "ARNDIS") returned to (ILF). 757-236 (26245) wet-leased to Jet Green. 767-300ER to be wet-leased to Israir (ISA) in summer for 3 charter flights/week, Tel Aviv - New York.

May 2004: Replaced Britannia Airways (BRI) on Thomson.fly charters to the Caribbean from Brussels, using a 767-383ER (TF-FIB).

757-236 (26245) returned from JetGreen, Ireland, after they ceased operations after start up in early May. Then wet-leased to Air One (ADH). 757-256 (26243) wet-leased to Volare (VolareWeb) (VLR). 767-3YOER (24593) returned from Volare (VLR), wet-leased to Av8Air (AV8) to replace 767-383ER (25365) returned from (AV8), which now leased to Thomson (BRI). 767-3YOER (24953) wet-leased to Israir (ISA).

June 2004: 757-236 (26245) wet-leased to Volare (VLR). 767-383ER (25365) wet-leased to Hewa Bora (EXD).

August 2004: Agreement between AWAS (AWW) and Loftleidir Icelandic (wet-leasing subsidiary if Icelandair Group) to provide 757's & 767's for Icelandair (ICE) to provide wet-leasing services to airlines around the world.

Icelandair (ICE) Group 1st 6 months = +12 Million kronur/+$169,000 (-903 Million kronur).

757-200, ex-AV8Air (AV8), wet-leased to Astraeus (AUA).

October 2004: Icelandair (ICE) has taken a 8.4% shareholding in easyJet (EZY). Later, purchased an additional 1.7% for total 10.1% stake.

In May, Keflavik - San Francisco (767).

757-256 (26243, TF-FIU), returned from Volare (VLR).

November 2004: 767-3YOER (24953, TF-FIA), wet-leased to YES (YES).

December 2004: 7/15 orders (October 2005) 757-200 Aviation Partners Boeing (APB) blended winglets.

January 2005: Flugleidir Icelandic Group, parent company of Icelandair (ICE), $650 Million, 10/5 orders (February 2006) 737-800's. The group plans to lease the airplanes to other carriers as part of its strategy to "grow its business outside Iceland." A separate subsidiary headed by Halidor Vilhjalmsson, who is presently (ICE)'s Senior VP Finance, will manage the leasing, while Sunrock (SNR) will handle the marketing. The target of the market is China.

767-383ER (24846, TF-FOC), ex-(ICON) Capital, delivery.

February 2005: Becomes the 16th customer for the 787 Dreamliner with firm orders for 2 787-8's for delivery in 2010.

March 2005: Sigurdur Helgason President will retire at the end of May 2005 after 20 years of service.

The Flugleidir Group changed its name to the FL Group.

April 2005: The FL Group, formerly Flugleidir Icelandair (ICE), $325 Million, 5 orders (February 2007) 787-8's. Plans to lease these airplanes to other carriers.

Jon Karl Olafsson, (CEO), ex-head of subsidiary, Air Iceland.

May 2005: 2,197 employees.

1st Quarter Icelandair (ICE) Parent FL Group = +25 Million kronur/+$382,821 (-855 Million kronur): +28% fuel costs; +10% (ASK) (capacity); +14% passengers; 70% LF (load factor).

757-27 (24838) wet-leased to Blue Line (BLE).

June 2005: 757-28AF (24567, TF-FID), (AWAS) (AWW) leased for Icelandair Cargo operations in TNT (TNB) colors.

August 2005: 757-23AF (24566, TF-FIE), ex-Guyana Airways (GUY), (AWAS) (AWW) leased for Icelandair Cargo operations. This airplane was converted to freighter by Precision Conversions.

September 2005: Icelandair (ICE) owner FL Group said that it is in talks with Sterling (STR) owner Fons Eignarhaldsfelag on an investment in or purchase of (STR) and Maersk Air (MRS). Fons received regulatory clearance to move forward with the purchase of the air assets of (MRS) from A P Moeller. Talks between Icelandair (ICE) owner FL Group and Sterling (STR) owner Fons Eignarhalsfelag over a possible merger or acquisition may be close to fruition. According to Danish media, FL Group will acquire (STR), which itself is being merged with Maersk Air (MRS) of Denmark. The FL Group (ICE) also owns 13.01% of easyJet (EZY).

Icelandair (ICE) parent FL Group named Jon Sigurdsson Managing Director responsible for private equity and strategic investments.

FL Group, parent of Icelandair (ICE), as expected, reached agreement with Sterling (STR) parent Fons Eignarhaldsfelag to acquire the Danish low-fare airline for DKK1.5 billion/$241 million including DKK1.1 billion in cash and DKK400 million worth of shares in the FL Group.

The purchase price is subject to Sterling (STR)'s achieving EBITDA for 2006 of at least DKK345 million. Should it fall short, the price may be reduced by up to DKK500 million. Conversely, it may be increased if Sterling (STR) exceeds its cash flow target. FL will take over operation of the carrier on January 1, subject to approval of relevant competition authorities.

Sterling (STR), which recently absorbed Maersk (MRS), will be operated as an independent company focusing on charter and tourism markets with an emphasis on southern Europe. It operates 30 737s and expects to carry 5.2 million passengers next year. Palmi Haraldsson will continue as Chairman of the airline's board with Almar Orn Hilmarsson staying on as (CEO).

In tandem with the purchase, thge FL Group proposed a share offering to raise ISK44 billion/$733 million, boosting equity to ISK65 billion. Offer price is ISK13.6 per share and the company has received pledges for ISK39 billion, with the remaining ISK5 billion to be sold in a fully underwritten stock offering.

"With this share capital increase, we are making a fundamental change in the company," said former FL Group Chairman, Hannes Smarason, who replaced Ragnhildur Geirsdottir as (CEO). "Our aim is to become a leading significant influence investor, with focus on Europe." After the acquisition of Sterling (STR), annual revenues will be ISK100 billion.

The FL Group has been restructured to separate airline and tourist service operations from investment activities. The Icelandair (ICE) Group will handle (ICE), Icelandair Cargo, Loftleioir-Icelandic, Icelandair Technical Services and Icelandair Ground Services. In combination, these companies represent about a 3rd of total FL Group turnover and employ around 2,000. Jon Karl Olaffson, currently Icelandair (ICE) (CEO) is now head of the Group.

Bluebird Cargo (BLS) and Flugflutningar will be combined in a separate subsidiary. Companies involved in domestic tourist activities make up the third grouping, with Sterling (STR) being the fourth.

The investment activities likewise have been separated into three divisions: Private Equity, Asset Management and Portfolio Investments, and Icelease, which will be involved in airplane leasing and finance activities.

FL Group, parent of Icelandair (ICE) and Sterling (STR), raised its stake in easyJet (EZY) from 13.99% to 16.18%.

FL Group (ICE) and Kaupthing Bank signed a letter of intent (LOI) to form a company to manage 10/5 737-800s ordered by FL Group (ICE) earlier this year. FL Group (ICE) will hold 49% of the leasing venture. Lease agreements have been placed for 9 of the airplanes, five of which will go to Air China (BEJ) as previously announced. Hainan Airlines (HNA) will lease another 4 for 8 years with deliveries in August - December 2006.

November 2005: Icelandair (ICE) will launch 3x-weekly direct service between Keflavik and Orlando Sanford March 27 aboard 757-200s.

767-3YOER (24953, TF-FIA), wet-leased to Santa Barbara Airlines (BBR).

December 2005: 1st 11 months = Passenger traffic 4.06 Billion (RPK) +18.8%); Freight traffic 16 Million (FTK) (-3.8%); 1.44 Million passengers (+14.7%).

January 2006: Hitit Computer Services' Crane Frequent Flyer software was chosen by Carlson Marketing Group for Virgin Blue (VOZ)'s new loyalty program Velocity. Turkish Airlines (THY), Icelandair (ICE) and Kuwait Airways (KUW) also use Crane.

FL Group of Iceland purchased 6% of Finnair (FIN), adding to airline holdings consisting of Sterling (STR) and 16% of EasyJet (EZY), which has been the subject of recent takeover speculation. The investment in Finnair (FIN) brings the total holding by Icelandic (ICE) interests in the Nordic airline to 18%. The Finnish government has control with 57%. Finnair (FIN) plans to add an 8th long-haul airplane to support its Far East expansion, which could be an A340-300 rather than another MD-11 "depending what is available on the market," a spokesperson said. It ordered 9 A350-900s and 3 A340-300Es in December. (FIN) transported around 8.5 million passengers in 2005, an increase of +4.5% over 2004 and a record for Finnair Group (FIN). Passenger traffic (RPK)s grew +7.2% while (ASK)s increased +5.1%. This resulted in a load factor of 72.6% LF, up +1.4 points.

February 2006: Icelandair (ICE) transported 1.53 million passengers in 2005, up +14.5% over the prior year. Annual load factor was nearly 78% LF.

The FL Group announced that it intends to spin off Icelandair (ICE) Group into an independent subsidiary through a listing on the Iceland Stock Exchange as the parent "has undergone considerable changes recently and is now an investment company." Kaupthing Bank and Islandsbanki will manage the process, which is scheduled to be completed by mid-year. Further details will be available in the spring.

FL Group also has opted to sell Reykjavik Excursions and Icelandair (ICE) Car Rental, which are part of FL Travel Group, whose remaining companies will be brought into Icelandair (ICE) Group. Several other subsidiaries also will join, bringing the group's composition at the conclusion of the process to Icelandair (ICE), Icelandair (ICE) Cargo, Loftleidir Icelandic, Icelandair (ICE) Technical Services, Icelandair (ICE) Ground Services, Blafugl, Flugflutningar, Fjarvakur, Flugfelag Islands, Icelandair (ICE) Hotels and Islandsferdir.

"These changes reflect FL Group's focus on investments," (CEO) Hannes Smarason said. "We want to give the public and institutional investors the opportunity to become shareholders in the Icelandair (ICE) Group. Icelandair (ICE) Group has identified numerous potential growth areas on the international market and we have great expectations of listing the company."

Icelandair (ICE) selected the Rolls-Royce (Trent 1000) to power its 787s. It placed an order for 2 firm airplanes and 5 options in February 2005 for delivery in 2010. The engine order is worth up to $650 million at list prices and includes a lifetime maintenance agreement. The (Trent 1000) will run for the 1st time this month and is scheduled for its 1st flight on the Rolls-Royce flying testbed in the 1st quarter of next year.

757-204F (26962, TF-CIB), delivery.

April 2006: FL Group announced yesterday the sale of its 16.9% stake in easyJet (EZY) for approximately €325 million/$395.9 million, earning Icelandair (ICE)'s parent company some €140 million in profit from its initial investment and representing an annual return of 70%, "far surpassing" the 20% target. JPMorgan was the sole bookrunner and JPMorganCazenove was joint lead manager. FL Group said the proceeds will be "channeled into new investments during 2006." It now has liquid assets of about €600 million.

FL Group exercised purchase rights for 2 additional 787-8s on behalf of Icelandair (ICE). Delivery is scheduled for spring 2012. The airplanes are worth approximately $290 million at list prices and will be powered by (Trent 1000)s. Icelandair (ICE) will take delivery of its 1st 2 Dreamliners in 2010.

FL said easyJet (EZY) has "great prospects" and made clear that the sale was "primarily due to other investment opportunities." It has been investing in nonaviation companies since its November 2005 equity offering. However, (CEO) Hannes Smarason said, "The sale does not affect our other investments in the aviation sector and we remain committed to our investments in Icelandair (ICE), Sterling (STR) and Finnair (FIN)." The group also announced it increased its share in Finnair (FIN) to 10%.

Icelandair (ICE) and (SAS) signed an interline agreement. Icelandair (ICE) will double its frequency to Copenhagen to 4 daily flights this summer.

May 2006: FL Group, the investment firm that owns Icelandair (ICE), Sterling Airlines (STR) and other air transport and tourism companies, reported a first-quarter net profit of +ISK5.84 billion/+$82.9 million, a result that compared to a profit of +ISK25 million in the year-ago quarter and "highlight[s] FL Group's focus as an investment company specializing in strategic and private equity projects as well as hedge fund activity." During the quarter, FL Group completed its acquisition of Sterling (STR), which was announced last fall and purchased a 6% stake in Finnair (FIN). It also made plans to list Icelandair (ICE) Group on the Icelandic Stock Exchange.

Icelandair (ICE)'s pre-tax loss of -ISK677 million was improved from a loss of -ISK1.05 billion in the year-ago quarter. Sterling (STR) lost -ISK1.8 billion before taxes, a result that widened to a -ISK2.6 billion loss, including restructuring charges.

FL Group said of its airlines, "The performance of Icelandair (ICE) Group is exceptional with a seasonal loss which is much lower than the year before. The Sterling (STR) turnaround is ahead of schedule and we are pleased with the progress they are making, bearing in mind the significant seasonality of the business."

767-3YOER (24953, 4X-EAP), leased to El Al (ELA).

June 2006: Iceland and India reached an air services agreement that will allow both countries to designate as many airlines as they wish and either country to limit, suspend or revoke service by a carrier designated by the other country under certain conditions, the Indian government announced last week. Designated airlines will be allowed to fly from any point in their own country to any 2 points in the other via any two intermediate points and to any 2 points beyond. The agreement will be signed formally upon approval by both governments.

Delta Air Lines (DAL) signed a $15 million, 5-year agreement for Delta (DAL) TechOps to provide maintenance work on Icelandair (ICE)'s 767-300 components and provide inventory exchange services.

July 2006: Employees = 2,565.

Parent organization/shareholders: FL Group (100%).

Owns: Air Iceland (100%).

Alliances: Scandinavian Airlines (SAS).

Loftleidir Icelandic, the charter and (ACMI)-marketing subsidiary of Icelandair (ICE) Group, acquired a 55% holding in Latvian charter operator Latcharter Airlines (LAJ) and committed to acquire the remaining shares in the future. The move comes as a result of continuing cooperation between the companies and is part of Loftleidir's strategy to strengthen its position in the Baltic and (CIS) region as well as adding Airbus airplanes into its worldwide (ACMI) product line. Latcharter (LAJ) was established in 1992. In 2005, it carried 100,000 passengers and its turnover reached €17 million/$21.8 million, up from €13 million in 2004. It also offers wet-lease services outside the country. It employs 87 people.

August 2006: FL Group, the Reykjavik-based parent of Icelandair (ICE) Group, Sterling Airlines (STR) and other aviation and tourism businesses, reported a 2nd-quarter net profit of just +ISK118 million/+$1.7 million, narrowed from a profit of +ISK1.9 billion in the year-ago period. (CEO) Hannes Smarason cited "extremely turbulent" capital markets in the quarter as well as "difficult market conditions and seasonality in operating companies" through the 1st half of the year to explain the reduced results. But Icelandair (ICE) Group had its best-ever 1st half, with net income of +ISK3.86 billion for the 6 months ended June 30, including a 2nd-quarter net profit of +ISK1.56 billion.

Danish Low Cost Carrier (LCC) Sterling (STR), acquired officially by FL Group in the 1st quarter, reported a pre-tax loss of -ISK2.53 billion for the first half but pre-tax income of +ISK320 million for the 3 months to June 30. "The Sterling (STR) turnaround is moving according to plan while record high fuel prices and increased competition remain challenging," Smarason said.

FL Group decreased its investment in air transport somewhat in the quarter by selling its 16.9% stake in easyJet (EZY).

Icelandair announced its winter USA service from Keflavik as follows to:
- Baltimore with 4x-weekly (Mondays, Wednesdays, Thursdays, & Sundays);
- Boston with 7x-weekly;
- Minneapolis with 4x-weekly (Tuesdays, Thursdays, Fridays, & Saturdays) with no service from January 10th through March 14th;
- New York with 5x-weekly (Daily except Tuesdays & Saturdays) reducing to 4x- on January 4th (Daily except Tuesdays, Wednesdays, & Saturdays);
- Orlando Sanford with 3x-weekly (Tuesdays, Wednesdays, & Saturdays) with no service from January 9th through March 7th;

"Icelandair (ICE)'s success on the transatlantic route from the USA since 1948 has been due to our ability to quickly and easily adapt to fluctuations in the market," General Manager Americas, Gunnar Eklund said, adding that projections of reduced yields and load factors on transatlantic routes during the period forced the decision.

(SAS) Ground Services Denmark signed an agreement with Icelandair (ICE) to provide handling services for 757 flights operated by the airline from Copenhagen.

British Airways (BAB) Engineering forms a Team757 Maintenance partnership with Icelandair (ICE) Technical Services and Volvo Aero to support Boeing 757 operators. Significantly, (ICE) Technical Services will be the lead Team757 partner as integrator and client contract holder, heading technical management of the fleet and heavy maintenance, negotiating the best Maintenance Repair & Overhaul (MRO) services rates for its clients. Volvo will be responsible for inventory availability and logistics. (BAB) will supervise component support, building on its existing 80% in-house capability. Gaynor Castle, (BAB) Business Development Manager, brings together the partners' strengths in airplane and technical maintenance, inventory and material support, component repair and line maintenance.

October 2006: In 1st 9 months, Icelandair (ICE) had 3.39 billion (RPK)s (-1.9%); and 1.22 million passengers (-0.2%).

Details of FL Group's plan to spin off Icelandair (ICE) were revealed yesterday by Glitnir, an Icelandic bank that will underwrite an offering of 51% of the carrier.

The sale is expected to net the FL Group +ISK26 billion/+$364.1 million. The Icelandair Group, which employs 2,700, will be listed on the Iceland Stock Exchange by the end of 2006, Glitnir said, with a public share offering to occur prior to the listing. It said the enterprise value of Icelandair Group is ISK43 billion.

"This agreement is outstanding for all parties involved and FL Group is realizing a substantial profit from the sale of Icelandair Group," FL (CEO) Hannes Smarason said. "This transaction and the plans that are on the table create significant flexibility for further investments for FL Group. We have emphasized that the Icelandair Group, the country's most important transport company, and a leading international player in the airline industry, would be in public hands."

Glitnir said it "already has buyers for a large part of the share the bank underwrites."

Employees of the airline group will have the opportunity to purchase shares, and the stakeholders said Icelandair Group operations "will continue on all levels as normal," with no plans to change management or reduce the workforce.

Later, the FL Group completed the sale of its 51% stake in Icelandair (ICE). It will earn a €305 million/$381.5 million profit on the €410 million transaction, it said in a statement cited by press reports. The buyers were Langflug (32%), Naust (11.1%) and Blue-Sky Transport Holding (7.4%).

Icelandair (ICE) will inaugurate nonstop service from Keflavik to Gothenburg on May 17th, operating 2x-weekly on Thursdays & Sundays; to Bergen (Norway) on May 18th, operating 3x-weekly on Mondays, Wednesdays & Fridays; to Halifax on May 17th, operating 3x-weekly on Mondays, Thursdays, & Saturdays; all flights using 757-200s. On the other hand, Icelandair (ICE) will not be resuming service to San Francisco.

Icelandair (ICE) will increase the frequency on its Keflavik to New York (JFK) route by adding 2nd flight 3x-weekly from May 24th. This additional flight will operate on Tuesdays, Thursdays, & Saturdays departing Keflavik at 1030 and landing back in Iceland before midnight. Both flights will be operated with 757-200s.

Icelandair (ICE) will increase the frequency on its Keflavik to Boston route by adding 2nd flight 4x-weekly from May 25th, operating on Mondays, Wednesdays, Fridays & Sundays, departing Keflavik at 1030 and landing back in Iceland before midnight. Both flights will be operated with 757-200s.

Icelandair (ICE) will also increase the frequency on some European destinations from Keflavik. This summer, compared to last summer, the airline will operate 7x-weekly to Amsterdam, Frankfurt and Paris as well as 3x-weekly to Helsinki.

By spring, it will offer 150 weekly flights from Keflavik (KEF), a +17% increase over the 2006 schedule.

Icelandair (ICE) migrated to the Amadeus Altea Inventory and Revenue Management System by (PROS). The airline already used Altea Reservation, the online booking solution Amadeus e-Travel Airline Suite and e-Ticket Server.

757-208 (24760, TF-FII) wet-leased to Air Mediterrannee (AMV).

November 2006: Precision Conversions delivered a 757-200F converted freighter to Icelandair Cargo (ICE). Modification was performed at Flightstar Aircraft Services in Florida.

767-300ER (TF-LLA), wet-leased to Ghana International Airlines (GHN).

January 2007: Serial airline investor FL Group (ICE) was busy over the holidays, announcing that it had purchased a 5.98% stake in American Airlines (AAL) parent (AMR) Corp for >$400 million and selling Low Cost Carrier (LCC) Sterling Airlines (STR) for €210 million/$277 million in cash and a 3-year shareholder loan to Icelandic consortium Northern Travel, of which FL Group (ICE) is a member.

FL Group (ICE) now is (AMR)'s 3rd-largest shareholder with 12.8 million shares. It said it has been building the stake "for a considerable period of time" and made the announcement once it exceeded the 5% reporting threshold.

"We believe AMR Corp is well positioned to take advantage of the growing USA air travel market," FL (ICE) (CEO) Hannes Smarason said. "The supply-demand balance has improved considerably over the last several years and the company enjoys one of the best positions in the industry to take advantage of that as well as to build auxiliary revenues."

FL (ICE) sold stakes in Icelandair (ICE) and easyJet (EZY) last year and holds 23% of Finnair (FIN). Acquired in late 2005 following its merger with Maersk Air (MRS), Sterling (STR) was the last of FL (ICE)'s wholly owned airline subsidiaries.

Northern Travel, comprising Fons (44%), FL (ICE) (34%) and Sund (22%), will be a "major force" in travel and tourism in Northern Europe, Smarason said. The sale includes the entirety of Iceland Express (ICX), 51% of UK-based Astraeus (AUA) and portions of Swedish and Danish travel agencies.

"The sale of Sterling (STR) into the larger leisure group is a logical step to increase the value of Sterling (STR)," FL (ICE) said. Northern Travel expects to realize €1.26 billion in turnover and transport 7.5 million passengers this year.

"We believe that this unique combination of assets will have a great effect on the Nordic travel and tourism market," Northern Travel Chairman Palmi Haraldsson said. "The company is heavily represented in all the Nordic countries and intends to increase its representation through various means."

Icelandair (ICE) chose (SAS) Ground Services for handling at Oslo, Bergen, Stockholm Arlanda and Gothenburg.

757-27B (24838, TF-FIW), wet-leased to Yakutia Air (SYL).

February 2007: FL Group of Iceland (ICE) raised its stake in American Airlines (AAL) parent (AMR) Corp to 8.63%. The company purchased a 5.98% share in December and now with the additional investment "appears" to be (AMR)'s largest single shareholder, the "Fort Worth Star Telegram" reported. "We have been following the airline industry in the USA, and we believe (AMR) Corp presents strong prospects for 2007," FL (ICE) (CEO) Hannes Smarason said.

March 2007: Icelandair (ICE) Group reported a -ISK550 million/-$8.3 million loss in the 3 months ended December 31, its 1st quarter since splitting from investment company FL Group. The company was acquired by a consortium called Icelandair (ICE) Group Holding, which then merged with Icelandair (ICE) Group on November 1. Full-year figures, which showed a +ISK2.62 billion profit, were presented on a pro-forma basis "to provide information about how the Group's operations and cash flows might have been," if the sale occurred at the beginning of 2006. Year-ago comparisons were not provided. Principal investors in Icelandair (ICE) Group are Langflug (32%), Naust (14.8%) and Fjarfestingafelagid Mattur (11.1%).

The company reported 3-month revenues of ISK12.59 billion, expenses were ISK12.25 billion and the operating result was a -ISK394 million loss. The scheduled airline (ICE) operation posted a -ISK390 million net loss on revenues of ISK9.29 billion. Icelandair (ICE)Group comprises 14 subsidiaries. Based on the full-year pro-forma report, the company posted an operating profit of +ISK3.33 billion on revenues of ISK56.14 billion and costs of ISK50.09 billion.

(ICE) announced contracts for a new Thales (THL) In-Flight Entertainment (IFE) i4500 system and new seats from Aviointeriors worth a combined ISK1.8 billion. The deals are part of its effort to renew its 757 fleet and "a clear statement that (ICE) intends to offer full service on board," (CEO) Jon Karl Olafsson said.

Starting May 11th, Keflavik - Helsinki, using 757-200s.

Icelandair (ICE) chose (SAS) Ground Services as its new provider at Paris Charles de Gaulle (CDG).

April 2007: "Discover the World Marketing" now is representing Icelandair (ICE) in Spain and Portugal.

May 2007: Icelandair (ICE) Group's 1st-quarter loss more than doubled to -ISK1.23 billion/-$19.5 million from -ISK588 million in the year-ago quarter, as the expanding airline invested in network growth, airplane introduction and training. (ICE) said the result was "in accordance with our plans" and that it still expected to surpass the +ISK2.62 billion pro forma profit earned in 2006. The Icelandair (ICE) Group split from investment firm FL Group last November. Operating revenue rose +24% to ISK11.91 billion against a +21.6% climb in costs to ISK11.99 billion. Operating loss narrowed to -ISK833 million from -ISK1.13 billion. "Operations are in accordance with plan, but we are experiencing negative exchange rate effects in the quarter, as well as positive effects due to sales profit in airplane trading," (CEO) Jon Karl Olafsson said. During the quarter, the company's Icelease subsidiary signed agreements regarding the purchase, sale and leaseback of 5 737-800s, 1 737-300F freighter and 2 757-200s, for which it earned an estimated profit of +ISK1.2 billion. "The Group's strategy is to grow in this field, relying on knowledge of international airplane trade and financial markets," Olafsson said.

Starts Keflavik - Bergen, - Gothenburg, - Halifax, using 757-200s. Icelandair (ICE) launched 3x-weekly seasonal service between Reykjavik and Halifax.

Icelandair (ICE) Group signed a letter of intent (LOI) to acquire Travel Service (TSF), the largest private airline in the Czech Republic and owner of Low Cost Carrier (LCC) Smart Wings (TVS). Travel Service (TSF) operates charter flights to and from Prague and Budapest in addition to Smart Wings (TVS). Its revenue in 2006, when it carried >1.8 million passengers, totaled €190 million/$256.9 million. Its fleet comprises 12 737s. No acquisition price was released.

This signing marked the start of the due diligence process, which is expected to take a "few weeks," Icelandair (ICE) said, adding that it aims to sign a final purchase agreement by mid-June. "Icelandair (ICE) will purchase 50% of the shares before the end of June and the remaining 50% during 2008," it said. (CEO) Jon Karl Olafsson said, "We have been looking towards Eastern Europe, where we think that we have good business opportunities with our knowledge and experience. It is obvious that if Icelandair (ICE) Group acquires Travel Service (TSF), it will grow fast this year. This airline is, regarding number of passengers and fleet, close to Icelandair (ICE)'s scheduled operations in size. We consider this a good investment."

Avion Aircraft Trading placed a firm order for 8 A330-200F freighters, increasing its Memo of Understanding (MOU) commitment by 2. The order follows finalization of a 1st leasing arrangement with Icelandair (ICE) Cargo for 4 A330-200Fs, Airbus said. Deliveries will start in 2010. Rolls-Royce (RRC) said Avion Aircraft Trading selected the (Trent 700) to power the 8 A330-200F freighters ordered. The engine order is worth approximately $300 million at list prices. Deliveries are scheduled to begin in 2010.

June 2007: (CHAMP) Cargosystems said 28 "of the world's leading cargo carriers" are switching over to the new Web-enabled and Java-based version of (ULD) Manager. Among them are Air China (BEJ), Finnair (FIN), Icelandair (ICE), and Saudi Arabian Airlines (SVA).

July 2007: Canada and Iceland signed an "open skies" agreement, that replaced a Memo of Understanding (MOU) signed in 1995, and will allow Icelandair (ICE), which currently serves Halifax, to launch a Toronto service next spring. It said flights will operate 5x- to 7x-weekly. (ICE) said additional Canadian destinations "are under consideration for future development."

August 2007: Icelandair (ICE) Group, while admitting that "increased network capacity has not led to the passenger revenue growth we had hoped for," reported a +ISK205 million/+$3.1 million 2nd-quarter profit that represented a plunge from pro forma earnings of +ISK1.25 billion in the year-ago quarter. "Extensive investment in added capacity and fleet enlargement throughout the Group characterizes the 1st 6 months and opens up new opportunities for increased revenue in the 2nd half," (CEO) Jon Karl Olafsson said, warning that while forward bookings "are looking better," the company expects "ongoing pressure on yield due to hard competition."

Revenue rose +11.8% to ISK16.19 billion, as income from transport activities climbed just +0.8% to ISK9.69 billion. Expenses were up +15.1% to ISK14.87 billion, and (EBIT) dropped to ISK686 million from ISK1.12 billion in the year-ago quarter. The scheduled airline (ICE) segment reported a +ISK359 million net profit. In the 1st half, the group reported a -ISK1.02 billion loss, reversed from the year-ago semester's +ISK658 million profit.

The company will complete the acquisition of Czech carrier Travel Service (TSF) in the 2nd half and said it plans to implement a "new Group organization structure" in the coming weeks. "We still expect a good profit in 2007, and a better result than in 2006," Olafsson said. "However, we will have to work hard to reach our goals for 2007."

November 2007: 1st 6 months = 1.84 billion (RPK)s (-1.4%) traffic; 688,000 passengers (+1.3%).

December 2007: Icelandair (ICE) said it will terminate its operation at Baltimore/Washington International, effective January 13, citing "escalating costs and decreasing revenues." (ICE) will continue flying from New York (JFK) and Boston, Minneapolis/St Paul, and Orlando Sanford, and will add Halifax and Toronto to its list of North American gateways next spring. "We are fine-tuning the Icelandair (ICE) route network and our capacity in an effort to increase profitability," President & (CEO) Jon Karl Olafsson said.

Finnair (FIN) said the FL Group (AID)/(ICE), the 2nd-largest shareholder in the carrier behind the Finnish government, reduced its stake to 12.7% from 24.4% by selling 15 million shares. The Icelandic investor said the move "is in line with FL Group (AID)/(ICE)'s strategy to lower exposure to the aviation sector" and would result in a -ISK2.8 billion/-$44.4 million loss. FL Group (AID)/(ICE) said it remains the 2nd-largest shareholder and "continues to support Finnair (FIN)'s ambitious growth strategy."

Finnair (FIN) said approximately 5,300 investors participated in the €248.5 million/$357.9 million share offering, that concluded December 17, and 99.6% of the 39.2 million shares were subscribed for. It said the joint global coordinators of the sale will "seek to procure purchasers" for the remaining shares "as soon as practicable" and that it soon will announce the final results of the issue.

January 2008: 2007 statistics: 4.25 billion (RPK)s passenger traffic +.1%; 5.69% capacity (ASK)s; -1.4 load factor for 74.7% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "ICE-2007-STATS."

April 2008: Finnair (FIN) and Icelandair (ICE) signed a code share agreement effective next month. Finnair (FIN) will place its code on Icelandair (ICE)'s Keflavik - Helsinki Vantaa (HEL) service, while the latter will place its code on Finnair (FIN)'s (HEL) - Warsaw.

June 2008: Icelandair (ICE) reported a -ISK1.7 billion/-$22.6 million loss in the "normally negative" 1st quarter, deepened from a -ISK1.2 billion loss in the 1st 3 months of 2007. Revenue rose +18% to ISK14 billion and operating loss was -ISK1.7 billion. Icelandair (ICE) Group (CEO) Bjorgolfur Johannsson said the quarter still "was somewhat better than anticipated in much more difficult conditions than last year." Fuel costs increased by +ISK1 billion year-over-year , and the 2007 result also was boosted by +ISK1.2 billion in proceeds from airplane sales.

Icelandair (ICE) will cut 20% of its workforce of 1,230 employees as a result of financial pressures brought on by rising fuel prices, it announced. The reduction of approximately -240 staff will occur in the fall. The airline also will reduce its winter flying schedule by -14% and cease serving Berlin Tegel, Toronto, and Minneapolis/St Paul from Keflavik. Service to Paris Charles de Gaulle will be reduced, while flights to New York (JFK) will increase.

(ICE) said it has reached agreement with an unidentified party to lease out its 1st 787 and also opted to discontinue growth at Icelandair Cargo. "Through these and other actions [including reentry into the travel agency market, and the negotiation of short-term wage contracts with employees], we are solidifying our core operations, reducing risk and strengthening Icelandair (ICE) Group for the future," it said.

August 2008: Icelandair (ICE) Group 2nd quarter = net profit of $5 million (+$3 million).

(TIMCO) Aviation Services (ASC) said Icelandair (ICE) selected it to perform "C" checks on 757s. The first check took place last month at (TIMCO) (ASC)'s Macon facility.

October 2008: Iceland itself may be threatened with sinking beneath the financial waves, but the eponymous IcelandAir (ICE) group was able to step up with an upbeat 8-month trading statement showing turnover up 2 3rds to IcKr72 billion/$729 million, and (EBIT) up +58% to IcKr3.9 billion. Iceland's weak exchange rate and easing fuel prices have helped, along with its geographic diversity. IcelandAir (ICE) owns a dozen different companies including Czech carrier, Travel Service (TSF).

Icelandair (ICE) announced a series of enhancements including a premium economy cabin, new InFlight Entertainment (IFE)-equipped seats, a flexible fare structure featuring six different categories, new airplane interiors, new cabin crew (CA) uniforms and an upgraded website scheduled to go live on November 1.

Npvember 2008: The Icelandair (ICE) Group reported a 3rd-quarter net profit of +ISK4.39 billion/+$30.5 million, up +65% on a pro-forma basis from +ISK2.66 billion last year, but warned that "the future outlook is uncertain" because of the slowing global economy. Revenue rose +51% to ISK41.47 billion, while expenses increased +53% to ISK35.28 billion, owing in part to a +110% jump in fuel costs to ISK9.98 billion. (EBITDA) lifted +40% to ISK6.18 billion. The company said that "sustained liquidity is a key focus point" going forward, adding, "Due to the sudden economic downturn, plans have been implemented to tackle cost and revenue issues. Diversity, flexibility and bottom-line focus will get us through the current turmoil."

January 2009: Icelandair (ICE) will operate seasonal flights from Keflavik to Stavanger and Dusseldorf May 8 - September 29.

Singapore and Iceland announced the conclusion of an "open skies" agreement that includes 7th freedom rights for both passenger and cargo flights.

February 2009: A huge 4th-quarter loss related to the collapse of Iceland's banking and financial sector last fall dragged the Icelandair Group to a -ISK7.47 billion/-$65.9 million full-year deficit, reversed from a +ISL257 million profit in 2007. With Iceland's economic meltdown, came a rapid depreciation of its currency, meaning fewer locals could afford international travel.

Revenue soared +77.7% year-over-year to ISK112.74 billion, owing largely to a more-than-threefold increase in airplanes and crew leasing revenue. Operating loss of -ISK5.69 billion compared to a +ISK2.34 billion profit in the prior year. Fuel costs nearly tripled.
"In the first nine months of 2008, the Group's operations were successful and a good operating year was expected despite a projected 4th-quarter loss. The events that transpired in Iceland in October and their consequences drastically altered the operating conditions and for that reason we regard the operating results of the year as relatively strong," (CEO) Bjorgolfur Johannsson said.

The scheduled airline, Icelandair (ICE) segment posted a -ISK5.63 billion/-$90 miliion loss as opposed to a +ISK1.03 billion profit in 2007. Operating loss was -ISK5.2 billion, reversed from a +ISK1.15 billion surplus. The group's 4th-quarter net loss was -ISK10.57 billion, widened considerably from the -ISK780 million deficit reported in the year-ago period. Impairment of intangible assets accounted for "just over" ISK6.4 billion of the quarterly result "based on the prospect that individual companies of the group are facing a more challenging business environment than before," it said.

(ICE) said its "future prospects are decent" but that the current year will feature "a large reduction in private consumption in Iceland" that "will result in substantially less demand." An influx of foreign tourists, however, may boost the group's travel and hotel subsidiaries, while lower fuel costs will help on the operational front.

The Icelandair Group owns Travel Service (TSF) which owns low cost carrier (LCC) SmartWings (TVS) and a variety of other business units. Icelandair (ICE) itself, connects Europe with North America, and accounts for just 35% of the company revenues.

IntraPoint, the USA and Norway-based provider of "Crisis Manager" software and services, signed an agreement with the Icelandair Group to implement its Crisis Manager Web-based software solution for handling incidents and crises.

March 2009: Icelandair (ICE) will launch 4x-weekly, Reykjavik - Seattle service on July 22 aboard a 757-200ER.

SEE ATTACHED - - "ICE-NEWS-MAR09-A."

April 2009: Timco Aviation Services (ASC) will provide line maintenance transit checks for Icelandair (ICE) at Minneapolis/St. Paul.

757-225 (22691, TF-LLY), wet-leased to Air Sylhet (SHR).

May 2009: Islandbanki, formerly Glitnir, increased its share of the Icelandair Group to 47% from 5%, both the bank and IcelandAir (ICE) announced. The parties said the move "will not affect the daily operations of the company" and that Islandbanki will sell the stake "in an open and transparent sales process as soon as possible." The shares acquired were pledged as security for loans to finance other shareholders' investment in Icelandair (ICE).

"Discover the World Marketing" is handling sales and marketing for Icelandair (ICE) in Italy. It already handles the carrier in Spain and Portugal.

July 2009: Icelandair (ICE) launched 4x-weekly, Seattle - Reykjavik service and will begin 2x-weekly, Reykjavik - Brussels flights in June 2010.

October 2009: Icelandair (ICE) is acquiring another 757 and growing its flight schedule by +10% next year. Will add 2 new destinations: Brussels and Trondheim.

November 2009: Icelandair (ICE) Group airlines flew 341.7 million scheduled (RPK)s in October, a +6% increase from the year-ago month, on a +4% rise in capacity to 460.2 million (ASK)s. Load factor rose +1.6 points to 74.2% LF and unit revenue was up +9% to ISK8.03.

The Icelandair Group said 3rd-quarter (EBITDA) rose +35.5% year-over-year to +ISK8.4 billion/+$68.2 million on a +29% surge in revenue to ISK53.7 billion, although release of its full financial report was postponed until December because its financial restructuring "has not been finalized." It warned that depreciation and financial costs "increase[d] considerably" from the 2008 3rd quarter. The company was -ISK4.98 billion in the red through the 1st half of 2009 compared to a -ISK1.28 billion deficit in the year-ago semester.

Oxford Aviation Academy signed a 5-year agreement with Icelandair (ICE) for provision of simulator training for 757s and 767s as well as DHC-8-100/-300 training for Air Iceland.

December 2009: The Icelandair Group reported a +ISK3.96 billion/+$32.3 million 3rd-quarter profit, down -9.7% from the +ISK4.39 billion earned in the year-ago period, and announced an agreement with co-owner Unimex Group to sell 20% of its stake in Czech Low Cost Carrier (LCC) Travel Service (TSF) at a -ISK889 million loss.

The transfer of shares to Unimex subsidiary Canaria Travel will reduce Icelandair (ICE)'s share in (TSF) to 30%. "As an Icelandic company with balance sheet that is being restructured, it is difficult to support the financing of our foreign subsidiaries," CEO, Bjorgolfur Johannsson said, adding along with release of the company's third-quarter results that the restructuring has been the "main focus all this year."

Group revenue rose +29% year-over-year to ISK53.64 billion and (EBIT) was up +35% to ISK6.88 billion from ISK5.12 billion in the 2008 3rd quarter. The scheduled airline and tourism segment posted a +ISK4.11 billion profit, up +91% from the year-ago period, on a +17% lift in revenue. Passenger numbers were down -5.3% and passenger revenue dropped -6.3%, with load factor level at 82% LF.

"The decision has been made to simplify [our] business model, emphasizing the opportunities inherent in Icelandair (ICE)'s route network, tourism in Iceland and related operations, and our sights have been set on organic growth in these fields," Johannsson said. "Work on the restructuring will continue in the coming weeks." It has placed its Travel Service (TSF) stake and its Bluebird Cargo (BLS) and SmartLynx (LAJ) subsidiaries under a separate holding company and intends to "sell them when market conditions are favorable."

(ICE) remained in the red through the 1st 9 months of 2009, losing -ISK1.02 billion, a reversal from the +ISK3.1 billion profit posted in the year-ago period. (EBIT) fell -23.3% to ISK3.34 billion. The company said it is targeting full-year (EBITDA) of ISK6.5 billion. It was ISK7.46 billion through September.

February 2010: Icelandair (ICE) said January unit revenue climbed +3% year-over-year to ISK7.57/5.89 cents. (ICE) flew 196.2 million (RPK)s traffic during the month, a +21% increase. Capacity rose +19% to 312.4 million (ASK)s and load factor was up +1.3 points to 62.8% LF.

(ICE) has announced a new business plan that will see Icelandair (ICE) concentrating on its core business, scheduled services from its Reykjavik Keflavik base and passenger and cargo wet-lease contracts. As part of the plan (ICE) is planning to sell its stakes in Bluebird Cargo (BLB), SmartLynx (LAJ) and Travel Service Airlines (TFS) with its Smartwings (TVS) division. It has already sold a 20% stake in Travel Service (TFS) to Czech tour operator Canaria Travel and is planning to sell the remaining 30% stake when market conditions are more favorable.

(ICE) has again wet-leased its single 767-300ER to Travel Service Airlines (TFS) for the winter season. The airplane has previously been operating scheduled services on behalf of Kabo Air (KAB) but has now been replaced with an Icelandair (ICE) 757-200.

March 2010: Icelandair (ICE) machinists (MT) went on strike over a pay dispute, disrupting operations for several hours. (ICE) said it planned to resume flights at 4 pm local time.

April 2010: Icelandair (ICE) was forced to relocate its airplane fleet to Glasgow airport, Scotland when Iceland's Eyjafjallajokull volcano (located in SE Iceland) erupted. The giant volcanic ash cloud that followed spread for thousands of miles at a height of between 22,000 ft and 34,000 ft and caused significant airspace closures across most of Europe for about 6 days.

Volcanic ash from the Eyjafjallajokull volcano eruption on Wednesday April 14th in SE Iceland caused dramatic disruption to air traffic in Europe, with many airlines cancelling services throughout the following 5 days owing to airspace closures but questioning whether European Union (EU) governments and Air Traffic Control (ATC) providers were overreacting.

Severe restrictions on civil flights across most of northern and central Europe remained in place until over the following weekend. This included airspace over Austria, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, most of France, most of Germany, Hungary, Ireland, northern Italy, the Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Slovakia, Sweden, Switzerland, Ukraine, and the UK. In some areas, upper airspace was made available for limited flights. But rather than easing, the restrictions spread on Sunday April 18: 11 airports in Spain closed as did Bulgarian airspace.

(IATA) (ITA)'s "initial and conservative" estimate of the financial impact on the airline industry is at least $200 million per day in lost revenue. It added that carriers would incur further costs for rerouting airplanes, maintaining parked airplanes at various airports and providing care for stranded passengers. The Association of European Airlines (AEA) said 63,000 flights were cancelled over 4 days.

The (AEA) and Airports Council International Europe jointly called for an "immediate reassessment of flight restrictions," asserting that non-passenger test flights conducted by several European airlines "have revealed no irregularities at all." The organizations questioned the "proportionality of the flight restrictions currently imposed."

(KLM) and Lufthansa (DLH) were among the carriers that performed test flights over the following weekend. (KLM) operated 1 on Saturday and was scheduled to operate nine more later. The technical inspection conducted after Saturday's 737-800 flight, which climbed to an altitude of 41,000 ft, "revealed that no problems had been encountered and that the quality of the atmosphere is in order," (KLM) said. (KLM) President & (CEO) Peter Hartman estimated the combined financial impact of lost revenue and costs for stranded passengers at €5 million/$6.8 million - €10 million daily. "This is rather dramatic," he told Dutch media. He confirmed that (KLM) does not have insurance that covers this event.

(SAS) warned it would lay off up to -2,500 employees temporarily in Norway, if airplanes remained grounded. It later announced that nearly all of its flights would be cancelled, though it did say "a few domestic flights" would operate in Norway.

Several European carriers, including Finnair (FIN) and Lufthansa (DLH), grounded their entire fleets. Ryanair (RYR) said it had cancelled all scheduled flights to/from the UK, Ireland, Denmark, Finland, Norway, Sweden, Belgium, the Netherlands, France, Germany, Poland, and the Baltic States.

Eurocontrol said there were 10,400 flights in European airspace 2 days after the eruption compared to 28,000 normally and approximately 5,000 on the Saturday April 17 compared to 22,000 on a normal Saturday.

The situation forced airlines in North America and Asia to cancel a high percentage of their Europe-bound flights. The USA Air Transport Association (ATA) said USA carriers cancelled 282 of 337 scheduled Saturday April 17 transatlantic flights. Meanwhile, hundreds of thousands of passengers were stranded at airports across Asia over the weekend as airlines in the region halted nearly all flights to Europe, though some to southern Europe were still operating.

SEE ATTACHED "AIRLINER WORLD" MAGAZINE ARTICLE ON THE VOLCANO ERUPTION - - "ICE-2010-04-VOLCANO ERUPTION-A/B/C/D/E."

SEE ATTACHED - - "ICE-2010-04-VOLCANIC ERUPTION."

July 2010: Alaska Airlines (ASA) entered into a code share agreement with Icelandair (ICE) under which (ICE) will place its code "on select Alaska flights," the carriers said. Agreement also includes a reciprocal frequent flier partnership to be launched this fall.

"As we celebrate 1 year of service from Seattle-Tacoma International Airport, we are pleased to strengthen the bridge for West Coast travelers wanting to explore Europe," Icelandair (ICE) General Manager for the Americas Thorsteinn Egilsson said. "Alaska Airlines (ASA)'s route network complements passengers connecting through Seattle on Icelandair (ICE)."

"Alaska Airlines (ASA) is delighted to welcome Icelandair (ICE) as our newest Mileage Plan and code share partner," stated Alaska Director of Customer Loyalty & Marketing Programs, Rick Rasmussen. "Icelandair (ICE) offers affordable and convenient options for our customers to earn or redeem miles for travel to Iceland and beyond."

August 2010: Icelandair (ICE) will boost its 2011 summer transatlantic flight schedule June 1 to September 12, with daily afternoon flights from New York and Boston to its hub at Reykjavik's Keflavik International Airport. As part of the augmented summer service, (ICE) will operate two daily flights to/from New York, Boston and Paris.

(ICE) said it will operate daily, Seattle (SEA) - Helsinki service from June 14, 2011 and 2x-weekly, (SEA) - Hamburg flights from June 3, 2011. (ICE) will operate 4x-weekly, seasonal Washington Dulles – Reykjavik Kleflavik service May 17 to September 13.

November 2010: (SAS) and Icelandair (ICE) reached a code share agreement effective November 8 under which the carriers will operate service beyond (SAS)'s Copenhagen and Stockholm hubs to Berlin, Gothenburg, Hamburg, Milan, Munich, Vilnius, Zurich, and Warsaw.

December 2010: Mxi Technologies was selected by Icelandair (ICE) Technical Services to provide its Maintenix software for total-care services provided to Icelandair (ICE) and international operators.

February 2011: Icelandair (ICE) chose "Discover the World Marketing" to assist (ICE) in expanding sales and marketing development in Estonia, Latvia, Lithuania, Hungary, Russia, and the Ukraine.

March 2011: Cabot Aviation arranged the sale of 1 (RB211-535E4-B)-powered 757-23NER (30233), to Icelandair (ICE), on behalf of Flycorp. Cabot said the airplane was delivered new to ATA (AAT) in 2000 and subsequently operated by (VIM)-Avia (MOV) in Russia and Aurela (LSK) in Lithuania.

May 2011: JetBlue Airways (JBL) and IcelandAir (ICE) launched an interline partnership under which customers can book a single combined ticket for (JBL) and (ICE)-operated flights. (ICE) will launch 2x-daily service to Reykjavik (RKV) from Boston and New York (JFK) June 1, and Washington Dulles - (RKV) service on May 17.

Iceland’s aviation authorities (Isavia) closed Keflavik International Airport to all inbound and outbound air traffic Sunday May 22 following the previous day's eruption of the Grimsvotn volcano. “A no-fly zone, which covers a 120-nautical mile radius around the eruption, has been put in place,” Isavia Spokeswoman Hjordis Gudmundsdottir told Icelandic broadcaster "(RUV)." The eruption started about 6 pm Saturday in a crater underneath Vatnajokull glacier, about 90 miles/145 km SE of Iceland capital Reykjavik. The volcano is the most active in Iceland and its last eruption ended in 2004. “The ash is very fine and is now drifting to the SE,” Iceland’s Civil Protection Department said on its website.

Eurocontrol on Sunday said, “There is currently no impact on European or transatlantic flights and the situation is expected to remain so for the next 24 hours.” It said it was advised by the Icelandic Met Office Saturday evening that the Grimsvotn volcano in Iceland had erupted. “The plume of ash has reached a height of 12 km/7.4 miles) or higher around Iceland and is currently drifting in a north-eastern direction,” it stated on its website, adding that “airplane operators are constantly being kept informed of the evolving situation.”

Icelandair (ICE), the country’s largest airline, said all its flights from (KEV) had been canceled. “Keflavik International Airport (KEV) will be closed May 22, due to volcanic ash concentration being above operable levels. (ICE) continues to monitor the situation along with aviation safety guidelines and will not operate flights unless cleared by air traffic control (ATC) authorities,” it said. SEE ATTACHED "ASSOCIATED PRESS" ARTICLE & PHOTO IN "THE SEATTLE TIMES" - - "ICE-2011-05-VOLCANO ERUPTION."

Following the eruption of the Grimsvötn volcano on May 21, the European Aviation Crisis Coordination Cell (EACCC), set up on May 19 2010 following the eruption of the Eyjafjallajokull, has been activated. The (EACCC) held its 1st meeting and during the meeting, the participants, who include the European Commission (EC), EUROCONTROL, (EASA), Air Navigation Service Providers, Airlines, and airport associations, shared information on the current situation in European airspace as well as on its possible evolution. They agreed a number of recommendations for managing the potential impact on European airspace while respecting established safety levels.

The (EACCC) will recommend that they adopt a revised approach, in line with guidance material developed by (ICAO) – ‘Management of Flight Operations with Known or Forecast Volcanic Cloud Contamination’. This approach allows airlines to decide if they will fly in areas contaminated by ash, on the basis of a safety risk assessment accepted by the relevant national supervisory authority. The material is currently subject to (EASA) rule-making procedures and in this respect, (EASA) will circulate a letter to all affected during the course of the day providing them with additional information on this approach.

Norwegian Air Shuttle (NWG) said it signed a letter of intent (LOI) with Icelandair (ICE) to acquire 3 Rolls-Royce (RRC) (Trent 1000)-powered 787-8 Dreamliners that (ICE) currently has on order.

Two of the 787s are expected to be delivered during the 1st half of 2013 and the 3rd in early 2015.

June 2011: Icelandair (ICE) expanded its Nordic network by launching a seasonal service between Reykjavik (KEF) and the main airport for Sweden’s 2nd-largest city, Gothenburg Landvetter (GOT), on June 24. The 2x-weekly flights are scheduled to connect to 1 of the (ICE)’s banks for North American flights. Operated with 183-seat 757-200s until August 15, flights compete with Iceland Express (ICX)’s 3x-week.

September 2011: Icelandair (ICE) will launch 4x-weekly, Reykjavik Keflavik – Denver 757-200 service on May 11.

November 2011: Icelandair (ICE)'s 3rd quarter results were a +$47 million net profit and a high 20% opeating margin, as revenues increased +15% but operating costs were +22%, with fuel costs +55% and +20% more (ASK) capacity.

December 2011: As flag carrier of Iceland, Icelandair (ICE) serves 18 destinations in Europe and 8 across the Atlantic in North America from its main base at Keflavik International Airport (KEF).

(IATA) Code: FI - 108. (ICAO) Code: ICE (Callsign - ICEAIR).

Parent organization/shareholders: Icelandair Group (100%).

Owns: Air Iceland (100%).

Alliances: Alaska Airlines (ASA); Finnair (FIN); and Scandinavian Airlines (SAS).

Main Base: Reykjavik Keflavik International Airport (KEF).

International, Scheduled Destinations: Amsterdam; Baltimore-Washington; Barcelona' Berlin; Boston; Copenhagen; Denver; Dusseldorf; Frankfurt; Glasgow; Helsinki; London; Madrid; Manchester; Milan; Minneapolis/St Paul; Munich; New York; Orlando; Oslo; Paris; San Francisco; Seattle; Stockholm; & Zurich.

January 2012: Icelandair (ICE) has announced 2 new routes from its Reykjavik Keflavik hub:
Reykjavik Keflavik - Akureyri: 4x-weekly seasonal service between June 7 and September 30 operated by Air Iceland;
Reykjavik Keflavik - Denver: 4x-weekly 757-200 starting on May 10.

Icelandair (ICE) will no longer serve Berlin and Dusseldorf International next summer season due to heavy competition from Air Berlin (BER) and Lufthansa (DLH).

(ICE) plans for +15% (ASK) capacity growth in 2012, due to new year-round flights to Denver. (ICE) also hopes to boost inbound tourism during offpeak seasons and for now sees promising 4th quarter advance bookings. Its 3rd quarter consisted of 45% connecting traffic, 38% traveling to Iceland and 17% traveling from Iceland.

March 2012: Icelandair (ICE) will launch 2x-weekly, London Gatwick - Reykjavik Keflavik 757-200 service on October 18.

April 2012: The (IMS) Company has been selected by Air Niugini (NIU) to supply its (RAVE) in-flight entertainment system for installation on its 767 long-haul fleet. Integration will be performed by Icelandair (ICE) Technical Services, beginning in the spring of 2013. It is the 9th airline to choose the seat-centric solution.

May 2012: On May 10, Icelandair (ICE) inaugurated flights to its seventh USA destination, Denver from its Reykjavik (KEF) hub.

July 2012: Icelandair (ICE) has signed a contract with California-based, Row 44 to equip its entire fleet of 16 757s with Wi-Fi. The fleet installation is expected to begin in the 2012 4th quarter and is scheduled for completion by fall 2013.

August 2012: Icelandair (ICE) will launch seasonal, Reykjavik service to Anchorage (2x-weekly May 15 to mid-September), Zurich (2x-weekly, June 1 to September 14) and St Petersburg (2x-weekly June 1 to September 17).

September 2012: Pratt & Whitney (PRW) signed a contract for its engine management program (EMP) service; a 5-year (EMP) agreement with Icelandair (ICE) covering 8 (PW4060) engines.

October 2012: Icelandair (ICE) launched 2x-weekly, Reykjavik - London Gatwick 757 service on October 18, increasing to 3x-weekly from spring 2013.

(ICE) has added a 767-300ER (25000, TF-LLB) to its fleet again. The 767-300ER currently operates on a wet-lease contract on behalf of SBA Airlines (BBR) on routes from Caracas to Miami International (MIA), Panamá City Tocumen International (PTY) and Tenerife Norte (TFN). It had previously also been operated for (BBR) by Icelandair (ICE)'s Latvian charter subsidiary, SmartLynx Airlines (LAJ). (ICE) dry-leases 2 other 767-300ERs to Air Niugini (NIU) on a long-term lease.

December 2012: Icelandair (ICE) has agreed to a $1.2 billion order for 12 737 MAX 8 and 9 airplanes, with purchase rights for additional 12 airplanes. These will add to (ICE)’s current all-Boeing (TBC) fleet of 23 757 planes used for cargo and passenger operations.

"This commitment is the result of our research into what airplane manufacturers have on offer to help us strengthen and grow our fleet and our network towards the future," said Bjorgolfur Johannsson Icelandair Group President & (CEO).

(ICE)’s commitment for the 737 MAX is Boeing’s latest announced order for its next generation single-aisle airplane, following a large order from SilkAir (SLK) in November. The 1st delivery to (ICE) is scheduled for the 1st half of 2018.

January 2013: In 2012, Icelandair (ICE) has +187% (RPK) traffic, on +16% (ASK)s, producing a +80% LF load factor for its 1st time.

(ICE) will resume seasonal summertime service to Halifax in the Canadian maritime province of Nova Scotia ending in early November.

February 2013: Icelandair (ICE) has placed a firm order for 16 Boeing 737 MAXs valued at >$1.6 billion at list prices.

The order, originally announced as a commitment for 12 737 MAXs in December 2012, has been increased to 16 airplanes and includes 737 MAX 8s and 9s, as well as purchase rights for eight additional 737 MAXs. Boeing (TBC) said the (ICE) order brings total 737 MAXs ordered to date to 1,180.

Icelandair (ICE) currently operates a fleet of 23 757s.

Global Aerospace Design Corporation and Icelandair (ICE) Technical Services expanded an existing partnership. Global will now provide engineering services for the Air Niugini (NIU) 737NG interior reconfiguration program.

April 2013: Icelandair (ICE) and WestJet (WJI) have signed an interline agreement. (ICE) passengers will be able to potentially connect to >80 (WJI) cities in the Americas, and the Caribbean and (WJI) passengers will gain access to >20 (ICE) destinations throughout Europe.

Passengers will be able to connect to each carrier’s flights in Toronto and Halifax, to which Reykjavik-based (ICE) provides seasonal services.

Separately, (ICE) announced it will launch 4x-weekly, Reykjavik Keflavik - Newark, New Jersey services from October 28. Newark will be (ICE)’s 11th destination in North America.

(ICE) has bought 2 757-200s, which it previously had on long-term lease, for an undisclosed sum.

Announcing the deal, the Icelandair Group said: “The 2 757-200S have been used in charter projects and they will continue to operate as such. The Icelandair Group also sees opportunities to use the airplanes later in its international scheduled operations.”

Icelandair (ICE) operates 23 757s, comprising a mix of 757-200s, 757-200PF/PCFs and 757-300s.

In February, (ICE) placed a firm order for 16 737 MAXs valued at >$1.6 billion at list prices, building on an original 12-strong commitment, which was announced in December.

May 2013: Icelandair (ICE) reported a 1st-quarter net loss of -$18.3 million, widened 38.6% from a -$13.2 million loss in the year-ago period.

(ICE) commenced seasonal flights on the 5,400 km route from its Reykjavik Keflavík (KEF) base to Anchorage (ANC) on 15 May. The service is offered with 2x-weekly frequencies and operated until mid-September using winglet-equipped 757-200s. Birkir Holm Gudnason (CEO) of Icelandair (ICE), commented: “In addition to opening up a new market for Icelandic tourism, travelers will now have a refreshing new option when flying from Alaska to Europe.”

Air Niugini ((IATA) Code: PX, based at Port Moresby Jacksons airport (POM)) (NIU) has taken delivery of a 757-27B (24838, TF-FIW), on wet-lease from Icelandair ((IATA) Code: FI, based at Reykjavik Keflavik airport (KEF)) (ICE). Despite their geographical distance, (NIU) has become a prolific customer of Icelandair (ICE)'s jets with 2 of (ICE)'s 767-300s (25365, P2-PXW and 30341, P2-PXV), currently based out of Port Moresby on dry-lease contracts.

July 2013: Icelandair (ICE) and Canada’s Porter Airlines have signed an interline agreement that will connect passengers between North America and >20 European Icelandair (ICE) destinations. Passengers can book a combined e-ticket for Porter and (ICE) flights, including checked-through baggage. Connections from >10 Canadian cities are now offered between Halifax, Boston, Washington Dulles, and Newark.

August 2013: The Icelandair Group has posted a 2nd-quarter net profit of +$18.5 million, up +29.1% from 2nd-quarter 2012 net profits of +$14.3 million. The company’s 2nd-quarter performance is a major, yet seasonally predictable, turnaround from the 1st quarter’s net loss of -$18.3.

September 2013: Icelandair (ICE) is tapping a new Canadian air traffic agreement to add new links from Reykjavik to Edmonton and Vancouver in 2014, which it will serve using 3 additional Boeing 757s. (ICE) begins 4x-weekly, Iceland - Edmonton service on March 26. Vancouver 2x-weekly, will run May 13 - October 12. Service to Geneva 2x-weekly, is from May 24 - September 23.

Icelandair (ICE) recently announced planned capacity increases for 2014, with two new routes to North America and one new route to Europe and additional frequencies on two North American and eight European routes. This will grow its international flight schedule by +18%, on top of +16% planned growth in 2013, and take Icelandair (ICE)’s international passenger number’s to 2.6 million in 2014. Looking further out, it has ordered 16 737 MAX airplanes to add to its fleet from 2018 to 2021.

Part of one of Europe’s more profitable airline groups, (ICE)’s success in recent years owes much to its use of its Reykjavik hub to capture passenger flows between North Europe and North America. However, the global financial crisis and the heavy losses of 2008 and 2009 remain fresh in the memory. Moreover, although its markets are relatively less penetrated by (LCC)s, the environment is likely to become increasingly competitive. In terms of unit costs, (ICE) is efficient, but not low-cost. It cannot afford to stand still in this respect.

October 2013: Icelandair (ICE) further increased the number of destinations it offers across the USA with the launch of services from its Reykjavik (KEF) hub to New York Newark, New Jersey (EWR) on October 28th. The new destination, which is (ICE)’s 2nd in New York and 8th in the USA, is offered with 4x-weekly frequencies. Winglet-equipped 757-200s are deployed on the 4,200 km route.

Icelandair (ICE) will decide on whether to nearly double the size of its in-house maintenance facilities or to outsource more work to 3rd-party providers by year end.

February 2014: Icelandair (ICE) posted a net profit of +$56.4 million for 2013, up from +$44.3 million for the previous year and “considerably better” than projected at the start of the year, President & (CEO) Björgólfur Jóhannsson said.

Revenue rose +14%, from $899 million to $1.02 billion, while passenger numbers climbed +12%, from 2.02 million in 2012 to 2.25 million last year. Capacity increased +16%, while passenger numbers rose +12%.

In comments accompanying the results, Jóhannsson said 2013 had seen a focus on several factors including reducing the seasonality of its business, improving synergies between companies in the Icelandair Group and particular emphasis on cost control.

(ICE)’s services are concentrated on transatlantic traffic and the inbound tourism market had shown “significant growth,” into which other companies in the Group had successfully tapped, he said.

The (EBITDA) figure was $143.7 million and forecasts for 2014 show this to be virtually static, in the $145 million to $150 million range.

Jóhannsson said the main reasons for this were anticipated stiffer competition leading to lower yields, rising fuel costs and currency exchange developments. Labor agreements with some sections of the work force had also expired, which created a degree of uncertainty.

Indeed, (EBITDA) for the 1st quarter is expected to be negative, due to costs involved in expansion of operations being front-loaded at the start of the year.

Nevertheless, with its current sound financial position and business model, the Icelandic flag-carrier is well positioned for future growth, he said.

Icelandair (ICE) increases Reykjavik - Edmonton service to 5x-weekly from 4x- for its summer schedule beginning March 5.

(ICE), which operates an all-Boeing 757 fleet, last year placed an order for 16 737 MAX 8 and 9s, plus 8 options.

March 2014: Icelandair (ICE) has added Edmonton (YEG) to its expanding North American network, with the launch on March 5th of a new 4X-weekly service from Reykjavik/Keflavik (KEF). The 4,940 km route will be operated by (ICE)’s 183-seat 757s and will face no direct competition. Edmonton becomes (ICE)’s fourth destination in Canada to be served non-stop, joining Halifax, Toronto, and Vancouver.

April 2014: Icelandair (ICE) has completed installation of Emteq's 115VAC Quasar II lighting system to its 1st 757 airplane.
Emteq's Quasar II has a 2-inch node resolution with customizable colors, and (ICE) worked with the airplane lighting system manufacturer to create an interior "Northern Lights" scene, a mixture of blue and green throughout the cabin.

(ICE) has gone "beyond what anyone else in the industry is doing with mood lighting," with its Northern Lights concept. The addition of the Emteq lighting system goes beyond just an interior upgrade for (ICE) though, according to Helgi Mar Bjorvinsson, (ICE)'s Senior VP Marketing & Sales. “Less maintenance and lower fuel consumption was an important case for the upgrade, as well as the desire to create a unique passenger experience and to utilize the lighting for branding purposes," said Bjorvinsson.

May 2014: Icelandair (ICE) on May 13th launched its latest route to North America, with the introduction of 2x-weekly (Tuesdays and Sundays) flights from Reykjavik/Keflavik (KEF) to Vancouver (YVR). The 5,700 km sector will be flown by (ICE)’s 757s until October 12th and faces no direct competition. This becomes (ICE)’s 4th destination in Canada as it already serves Edmonton, Halifax, and Toronto. In addition, (ICE) also flies to 8 destinations in the USA.

Icelandair (ICE) expanded its seasonal offering with new service from its Reykjavik/Keflavik (KEF) hub to Geneva (GVA) on May 24th. The 2,649 km sector to the 2nd most populous city in Switzerland will be operated 2x-weekly (Tuesdays and Saturdays) until September 23rd, utilizing the flag carrier’s 183-seat 757-200s. No other carrier serves this airport pair. This is (ICE)’s 2nd route to the Swiss market as it already flies to Zurich with 4x-weekly operations.

Icelandair (ICE) will move from seasonal, 4x-weekly, Keflavik - Washington Dulles service to year-round service beginning in January 2015.

The Icelandic Parliament has banned all industrial action by Icelandair (ICE) pilots (FC). The Icelandic Airline Pilots Association (FIA) had reportedly planned to strike for 9 days between May 9 and June 3, which would have affected 600 flights and 100,000 passengers. (ICE) was forced to cancel 26 flights on May 9.

If (ICE) and (FIA) do not reach an agreement by June 1, an arbitration court will decide pilot (FC) wages and benefits before July 1. The “agreement is in broad terms in line with agreements already signed on the Icelandic labor market this year, and will now be presented by (FIA) to its members, that will vote electronically on the agreement in the next 7 days.”

Several Icelandic (ICE) media reports have said the strike action could cost between ISK1.5/$13.3 million to ISK1.7 billion. However, the Icelandair Group said it is not certain what losses it faces due to the (FIA) strike.

In addition, it is expected that Icelandair (ICE) cabin crew (CA) will also negotiate a new wage agreement.

Later, the Icelandair Group signed a temporary wage agreement with the Icelandic Airline Pilots Association (FIA), which is valid until September 30. Under the terms of the contract, the Icelandair Group and the (FIA) will jointly work toward a long-term contract.

August 2014: Icelandic authorities raised aviation alert levels to orange, after seismic activity around one of the country’s volcanoes was detected.

A swarm of >2,500 earthquakes in 3 days has been measured by Icelandic experts with the country’s meteorological office around the Barðarbunga volcano, that could indicate signs of an impending eruption.

Experts raised the alert level from yellow green to yellow on August 16, and then to orange on August 18 after the strongest earthquakes detected around the volcano since 1996.

While officials say there is no sign that magma has been detected moving to the surface, they say that increased activity has prompted them to raise the alert level, because in case of a sub-aerial eruption “an ash plume of potential concerns for aviation will be generated.”

Barðarbunga (one of Iceland’s largest volcanic systems) sits underneath a glacier and has shown signs of activity over the last 7 years, but has not erupted since 1910.

Officials say this activity reduced after the eruption of the Grímsvötn volcano in 2011, which caused some limited disruption to air travel, although not as severe as that caused by the eruption of the Eyjafjallajökull volcano in 2010, which caused major disruption to air travel across Europe and the USA.

However, the new wave of activity at Barðarbunga has already generated hundreds of earthquakes, with many over a magnitude of 3 on the Richter scale.

Since the 2010 eruption, Iceland has introduced a 5-tier warning system for the aviation community, using colors to display possible activity: Gray indicates a quiet volcano and red indicates an eruption is imminent or in progress. The orange alert, issued for Barðarbunga indicates the volcano “shows heightened or escalating unrest with increased potential of eruption.”

September 2014: Icelandair (ICE) will launch new service to Portland International airport in May 2015, bringing its North American network to 14 cities. (ICE) will serve the Oregon city 2x-weekly from its Reykjavik hub on a 183-seat Boeing 757-200 from May 20th 2015 through October 21st 2015.

Passengers will be able to connect in Reykjavik to (ICE)’s flights on to the European continent, as well as in Portland to Alaska Airlines (ASA)’s flights to destinations on the USA west coast. “The past 6 years have been very positive for (ICE) and we aim to continue on the same path in 2015," said Birkir Holm Gudnason (ICE) (CEO).

Portland complements (ICE)’s service to Seattle/Tacoma and Vancouver in the Pacific NW.

The announcement comes a week after German leisure carrier Condor (CDF) announced that it would begin 2x-weekly seasonal service to Portland from Frankfurt in June 2015. No other carriers fly between Portland and Reykjavik.

Icelandair Technical Services, the Maintenance Repair & Overhaul (MRO) provider, Technical Services, Design Services and Component Services provider for the Icelandair Group and 3rd-party operators, has completed its upgrade to Maintenix version 8 by (Mxi) Technologies.

February 2015: News Item A-1: JetBlue (JBL) and Icelandair (ICE) to Become Code share Partners from WCARN.com, February 06, 2015.

JetBlue Airways (JBL), New York's "Hometown Airline," and Icelandair (ICE), the flagship carrier of Iceland, have today filed an application with the USA Government to enter into a bilateral code share partnership that will offer customers easy connections between the 2 airlines' networks with a focus on gateways in Boston, New York/(JFK) and Reykjavik.

Customers will enjoy combined ticketing and baggage transfer, when connecting between the two carriers. Both airlines offer personal in-flight entertainment, comfortable leather seating, and best-in-class customer service. Flights will become available for sale pending regulatory approval.

"We continuously look to expand and enrich our partnerships with some of the greatest airlines in the world to offer more options to our customers. Icelandair (ICE) is the perfect partner, with its customer-friendly approach, and an impressive and growing network of flights between the USA and scenic Iceland. We welcome customers from Iceland and across Europe aboard our flights, so they too can try our award-winning JetBlue (JBL) Experience," said JetBlue (JBL) President, Robin Hayes.

"As (ICE) enters 2015, we continue to strengthen our network, with more gateways, more frequency and more destinations. With today's announcement, we're pleased to bolster our partnership with (JBL) for the great benefit of our mutual passengers. We look forward to developing our relationship together and realize the great benefits for our passengers. Both (ICE) and (JBL) have a similar business model with routes that complement each other and a focus on customer satisfaction. We will expand our outreach together giving travelers on both (ICE) and (JBL) even more options when traveling, more connections across the globe, and a more pleasant travel experience to and from Europe," said Icelandair (ICE) (CEO) Birkir Holm Gudnason.

Under the proposed code share, the JetBlue (JBL) "B6" code will be placed on 7 Icelandair (ICE) routes between the USA and Reykjavik's Keflavik International Airport (KEF), and 8 routes to Scandinavia and Continental Europe available non-stop, via (ICE)'s Reykjavik hub (subject to receipt of government operating authority):

• Amsterdam, Netherlands (AMS)

• Anchorage, Alaska (ANC)

• Birmingham, United Kingdom (BHX)

• Boston, Massachusetts (BOS)

• Copenhagen, Denmark (CPH)

• Glasgow, United Kingdom (GLA)

• Helsinki, Finland (HEL)

• Manchester, United Kingdom (MAN)

• Newark, New Jersey (EWR)

• New York City, New York (JFK)

• Orlando, Florida (MCO, later 2015)

• Oslo, Norway (OSL)

• Seattle, Washington (SEA)

• Stockholm, Sweden (ARN)

•Washington DC (IAD)

The Icelandair (ICE) 'FI' code will be placed on JetBlue (JBL) flights to allow connections beyond (JBL)'s focus cities: Boston and New York/(JFK) to:

• Austin, Texas (AUS)

• Baltimore, Maryland (BWI)

• Chicago, Illinois (ORD)

• Detroit, Michigan (DTW)

• Fort Lauderdale-Hollywood, Florida (FLL)

• Los Angeles (LAX)

• Orlando, Florida (MCO)

• Newark, New Jersey (EWR)

• Philadelphia, Pennsylvania (PHL)

• Pittsburgh, Pennsylvania (PIT)

• Raleigh-Durham, North Carolina (RDU)

• San Francisco, California (SFO)

• Tampa, Florida (TPA)

• Washington DC ((DCA) and (IAD))

The airlines have successfully partnered on an interline basis since 2011, and look forward to the further cooperation this code share agreement brings.

About Icelandair (ICE):

(ICE), Iceland's leading airline since 1937, offers non-stop flights to 13 cities in North America and >20 destinations in Europe. With quick and easy connections through Iceland's award-winning Keflavik International Airport, (ICE) provides 1 of the fastest travel times across the Atlantic. Only (ICE) allows passengers to take an (ICE) Stopover for up to 7 nights at no additional airfare. For more information, visit Icelandair.com.

About JetBlue Airways (JBL):

(JBL) is New York's "Hometown Airline", and a leading carrier in Boston, Fort Lauderdale/ Hollywood, Los Angeles (Long Beach), Orlando, and San Juan. (JBL) carries more than >32 million customers a year to 87 cities in the USA, Caribbean, and Latin America with an average of 825 daily flights. Upcoming destinations include: Cleveland on April 30; Reno-Tahoe, Nevada on May 28; and Grenada on June 11, 2015 (subject to receipt of government operating authority).

News Item A-2: The Icelandair Group reported a 2014 net profit of +$66.5 million, up +18% from +$56.4 million year-over-year.

Revenue for the year rose +8.8% to $1.11 billion from $1.02 billion in 2013. (EBITDA) climbed 7% to $154.3 million, despite fears that a May pilot (FC) strike would adversely affect the Group’s yearly growth.

The Icelandair Group consists of Icelandair (ICE) itself, as well as regional carrier Air Iceland and leasing and charter operator Loftleidir. The group also operates hotels.

Passenger numbers climbed +15% from 2.26 million in 2013 to a record 2.6 million in 2014. Load factor was up +1.1% to 80.4% LF. The increase in passenger numbers was greatest on the Europe - North America service via Iceland, where numbers rose +23%. This is the Group’s largest market, accounting for 48% of passengers in 2014.

“The Group’s performance in 2014 exceeded management projections from the beginning of the year, with (EBITDA) at the upper limits of the company’s most recent earnings estimate,” President & (CEO) Björgólfur Jóhannsson said.

He said the Group’s strong performance was the result of “a number of interacting positive factors.” These included falling fuel prices, increased demand in the North American market, and good results from charter operations.

Negative factors (such as the depreciation of the euro against the dollar and “significantly higher than anticipated” maintenance costs relating to the Group’s freighters) were not enough to stall the company’s progress.

The outlook remains good, Jóhannsson said. “We are assuming continued profitable organic growth in the Icelandair Group’s operations in 2015. The Group’s international flight schedule will be +14% higher than in 2014. On the whole, prospects in the Icelandic tourist market are positive, and we also believe that the outlook for cargo and charter operations in 2015 is encouraging.” Projected (EBITDA) is in the range of $160 to $165 million.

News Item A-3: Icelandair (ICE) began 2x-weekly, Birmingham (BHX) - Reykjavik Boeing 757 service. It also increases London (LGW) - Reykjavik with an additional Saturday service from June 6. (ICE) currently flies 7x-weekly on this route to Reykjavik, with 2x-daily from London (LHR), 4x-weekly from Manchester, and 5x-weekly from Glasgow.

March 2015: Icelandair (ICE) is breaking with tradition, adding its 1st 2 Boeing 767s to its formerly all-757 fleet, and switching 5 aging Air Iceland Fokker F 50s for 3 Bombardier Dash 8-Q400s.

“Both the Boeing 767 and Dash 8-Q400 airplanes can service markets that the current fleet cannot, which will enable us to go into new markets and connect them to the current route network,” (ICE) said. It has not been decided whether the new airplanes will be purchased or leased.

This year Icelandair (ICE) will operate 23 Boeing 757-200s and a single 757-300. (ICE) owns all these airplanes, apart from 2 which will be returned to their lessor this autumn. From spring next year, these 2 leased airplanes will be replaced with a pair of 767-300s.

The 767-300 holds 260 passengers, compared with the 183-seat 757-200s and the 220-seat 757-300, and it has a greater range.

“Operating one type of airplane has been very economical for (ICE), but when the route network and the fleet reach a certain size, it becomes more feasible to have a broader range of airplanes in the fleet. High load factors all year round and limited number of landing slots on certain airports also support this decision,” (ICE) Group President & (CEO) Bjorgolfur Johannsson said.

The Icelandair Group wet lease subsidiary, Loftleidir-Icelandic, has operated 767s in the past, which have been maintained by (ICE).

Icelandair regional carrier Air Iceland was considering whether to perform a cockpit and interior upgrade on its 5 owned Fokker F 50s, or to replace them with a newer type. The Bombardier Dash 8-Q400 and ATR 72 were in the running, but as Air Iceland already operates two heavily modified Dash 8-Q200s,3 Dash 8-Q400s were tipped as the most logical choice.

“If we changed the fleet, the alternatives would be the Bombardier Dash 8-Q400 or ATR 72,” Air Iceland Managing Director Arni Gunnarsson said during the interview last June. “We could see a bigger airplane as a good alternative. We operate 10- to 12-flights per day to our main destination, Akureyri, so we could downsize the frequencies and still meet the market needs. Maybe three airplanes would be sufficient.”

The Dash 8-Q400 may also be capable of flights to the Faroe Islands, which Air Iceland currently serves through a code share operated by Atlantic Airways.

(ICE) has now confirmed that all five Fokker F 50s will be sold and replaced with 3 Dash 8-Q400s. This will take Air Iceland to a 5-airplane, all Bombardier (BMB) fleet comprising 3 Dash 8-Q400s and 2 Dash 8-Q200s.

“The Dash 8-Q400 airplane can seat 74Y passengers while the Fokker F 50 takes 50Y passengers. Air Iceland’s operations will be simplified and optimized as number of airplanes decrease and synergies will increase as all airplanes will be from the same manufacturer. As the Dash 8-Q400 is faster and has a longer range, Air Iceland sees opportunities in new markets. The company will be better equipped to service the domestic market as the airplanes are larger and travel time will be shorter. The airline aims to increase the number of foreign tourists on board its airplane going forward,” Icelandair (ICE) said.

The group also has 16 Boeing 737 MAXs on order, which will ultimately be used to replace its 757s.

April 2015: News Item A-1: Icelandair (ICE) said its first-quarter results should be better than forecast at the beginning of the year, largely as a result of increased sales and better fleet utilization.

In an interim first-quarter financial statement, (ICE) said it expected its (EBITDA) for the quarter to be negative in the range of $2 million to $4 million. Load factor on international flights was +4.9% points higher than the year-ago quarter, and the exchange of the euro to the USA dollar had been more favorable than expected.

Icelandair (ICE) said prospects for the full year were favorable, with bookings for the peak season looking promising. The forecast for 2015 now assumes that euro/dollar exchange rate will be 1.07 on average for the last nine months of the year, as against the 1.15 assumed in the forecast published in February.

(ICE) said: “The strengthening of the USA dollar against the European currencies has and will have a bad influence on the company’s results, especially during the high season. Better results in (1Q) leads to an unchanged forecast for the full year, despite unfavorable development in currency rates.”

(ICE) anticipates that (EBITDA) will be in the range of $160 - $165 million for the full year, up from $154.3 million in 2014.

(ICE) stressed, however, that “the results are very sensitive to external factors such as currency and fuel price fluctuations and uncertainty in the labor market in Iceland can have significant impact on the results.”

News Item A-2: "Service with Distinction" by Routes News, Graham Newton, April 30 2015.

Icelandair (ICE) hopes its rapid connections will make it stand out from the crowd. (ICE) is part of a distinctive business model. It is the largest subsidiary of the Icelandair Group that also contains travel companies, hotels and ground services. Nevertheless, this eclectic mix has proven extremely successful.

Underpinning the success is a constant evaluation of potential new destinations. Most recently, (ICE) has been opening up the Canadian market, sensing strong opportunities on the trans-Atlantic route and exploiting a natural, northern-latitudes connection.

Only slightly further south, flights to Portland, Oregon, will start in May 2015. Andrés Jónsson, General Manager for Icelandair (ICE) in the UK, is bullish about the prospects for this service as there are few direct flights to the city out of Europe.

It is this strategy, Jónsson explains, that has also seen (ICE) choose to name Birmingham (BHX) as its 5th UK gateway, beginning February, 2015. “Birmingham airport is well located between London and Manchester but has a lack of connections to North America,” he said. “Our service will be the fastest way to go to 8 out of our 14 destinations in North America from (BHX). We have seen big growth in tourist numbers into Iceland from our destinations across the UK and believe (BHX) fits well within our portfolio for Iceland and North America.”

Jónsson said that for many of (ICE)’s routes, (ICE) represents the fastest way to travel. Half of the 14 destinations out of London Gatwick and Birmingham provide the shortest trip duration for the destination. 6 flights out of Glasgow and 4 from Manchester are equally expeditious.

(ICE) has many other selling points too. There is a refreshingly generous baggage allowance, for example (2 23kg bags plus 10kg carry-on is allowed to North America for economy (Y) passengers).

Passengers can also stopover in Iceland for up to a week with no additional air fare. But if speed is more your thing, Keflavik International Airport offers short connection times of 60 - 90 minutes.

Indeed, Guðjón Arngrímsson, VP Corporate Communications, Icelandair (ICE), says the airport is playing its part in (ICE)’s success. “We are constantly working with our partners to strengthen our product and it seems to be working quite well,” he noted. “Our home airport in Iceland is growing with us at a steady rate.”

To maintain its profitable path, (ICE) will be exploring all available distribution channels to ensure every customer is served is the most appropriate manner. “Icelandair (ICE) has been in the market for 70 years and we have a good long history with the travel trade while our online sales have also developed very well,” said Jónsson.

“Our aim is to continue to grow within all channels and we have close co-operation with tour operators and travel agents,” he continued. “Our destinations in North America and gateways out of the UK have been growing fast for the last 5 years. We can experience different opportunities within each channel to serve our destinations.”

“We think it is fantastic how social media is making companies rethink how they interact with the market. We try to incorporate our brand values in a conversation that benefits and interests customers as well as ourselves.”

News Item A-3: Icelandair (ICE) ordered the Scandinavian Avionics Electronic Flight Bag (EFB) solution for its fleet of Boeing 757s. The (EFB) consists of 2 10.1-inch Panasonic tablets, and installation begins this fall.

May 2015: News Item A-1: The Icelandair Group has reported a net loss of -$14.55 million for the quarter ended March 31, narrowed from a -$26.72 million loss recorded in the year-ago period.

Icelandair (ICE) attributed the improved financial performance to an increase in passenger numbers, a record 1st-quarter passenger load factor and lower fuel prices.

Total group revenue for the quarter was down -3% to $186.1 million, but transport revenue increased +6% to $128.34 million. Transport accounted for 69% of total revenue, up +5.4% points year-over-year.

Total group expenses for the quarter fell -8% to $188.3 million.

President & (CEO), Björgólfur Jóhannsson said: "Our performance in the 1st quarter surpassed our projections and significantly exceeded the results of the 1st quarter of 2014. The principal explanation lies in the substantial increase in the number of passengers on our international flight routes and efficient utilization of both the seating capacity of our airplanes and our hotel rooms; the lower fuel price also has a significant impact on the comparison between years. The capacity increase in the quarter was +12%, but at the same time the number of passengers increased by +19% and the load factor was 79.2% LF, a 1st-quarter record.”

Passenger numbers on international flights increased +19% in the 1st quarter, reaching 477,400; load factor was up +4.9% points to 79.2% LF. (ASK)s were up +12% to 1.776 billion year-over-year.

The regional and Greenland market fared slightly less well in the first quarter, with passenger numbers down -3% to 63,000. (ASK)s also declined to 28.4 billion, a -4% decrease from the year-ago period. However, load factor was up +0.8% points to 71.4% LF.

Looking forward, Icelandair (ICE) said prospects across the group's route network operations were favorable.

“The year is off to a good start [and] the booking status for the coming months is favorable, with bookings for the summer in line with the company’s projections,” it said. (ICE) will be replacing 2 of its 183-seat Boeing 757-200 airplanes with 2 larger 767-300s, which can seat 260 passengers and have greater operational range than the 757s, opening up new market potential for Icelandair (ICE). The larger airplanes are scheduled to begin operating in the spring 2016. In addition, (ICE) will replace its 5 50-seater Fokker F 50 airplanes on (ICE)’s regional and Greenland routes with 3 70-seater Bombardier Dash 8-Q400s that will operate alongside the 2 existing Dash 8-Q200s.

“The company’s business operations are extremely dependent on external circumstances, such as fluctuations in currency exchange rates and fuel prices,” Jóhannsson cautioned, however. “The strengthening of the USA dollar against European currencies has a negative impact on the company's results, particularly during the peak season.”

As a result, (ICE)’s (EBITDA) forecast “for the year as a whole, remains unchanged, despite results exceeding anticipations in the first quarter,” he said.

News Item A-2: Icelandair (ICE) on May 19th launched its 1st flights to Portland (PDX) in Oregon, on the USA West Coast. The 5,993 km sector from (ICE)’s hub at Reykjavik/Keflavik (KEF) will be flown 2x-weekly using (ICE)’s fleet of classic 757s. Flights depart Iceland on Tuesdays and Thursdays, while departures from Portland take place on Wednesdays and Fridays. No other airline operates this route. Portland becomes (ICE)’s 10th USA destination and 14th in North America. Icelandair (ICE) also serves Seattle-Tacoma, which is not much more than <200 kilometres north of Portland. (ICE) has already announced that Chicago will become its next USA destination, starting next March.

August 2015: News Item A-1: The Icelandair Group has reported a 2nd-quarter (EBITDA) of $50.3 million, up +11.3% from $45.2 million in the year-ago period, due to profitable organic growth and lower fuel prices.

Transport revenue was up +2%, with total revenue down -1%. Equity ratio was 36% at the end of June. Icelandair (ICE) said net cash from operations was $86.7 million.

Icelandair Group President & (CEO) Björgólfur Jóhannsson said the principal reason for the improved results was the profitable growth in the company’s international flight operations, which increased +15% year-over-year. The number of passengers increased +17%. Load factor was 81.8% LF, up +1.8% points year-over-year.

“At the beginning of the year, we issued an (EBITDA) forecast projecting earnings of $160 to $165 million, and the accuracy of the forecast was confirmed with the publication of the 1st-quarter report last April,” Jóhannsson said.

“Updated projections now assume an average EUR/USD cross rate of 1.10 instead of 1.07, which will have a positive impact on operations,” he said. “Also, the booking status for the coming months in international flight operations has strengthened beyond the company’s projections which, all other things being equal, will have a positive impact on performance in the 2nd half of the year, in particular performance in the 3rd quarter. Taking all these factors into account, it is now assumed that the company’s (EBITDA) for 2015 will be in the range of $180 to $185 million.”

News Item A-2: Icelandair (ICE) has taken delivery of its 1st Boeing 767 from lessor (GE) Capital Aviation Services (GECAS) (GEF), marking an increase in capacity from its current all-Boeing 757 fleet.

The Boeing 767-300ER delivery marks the finalization of fleet plans outlined in March, which included the introduction of 2 Boeing 767s into Icelandair’s mainline operation and 3 Bombardier Dash 8-Q400s for regional subsidiary Air Iceland.

An (ICE) spokesman confirmed that the (GEF) delivery, announced by the lessor on August 20, is its 1st of type. (ICE) is taking a pair of 767s, although only 1 of these will be sourced from (GEF).

Icelandair (ICE), which has been a long-term 757 operator, will use the 767s to access markets it cannot reach with its current fleet. The 767-300 holds 260 passengers, compared with (ICE)’s 183-seat 757-200s and its 220-seat 757-300, and it has a greater range.

In the longer term, it is planning to replace the 757s with the 16 Boeing 737 MAXs it has on order.

Icelandair Group wet lease subsidiary, Loftleidir-Icelandic, has operated 767s in the past, which have been maintained by Icelandair (ICE).

September 2015: Icelandair (ICE) resumed 4x-weekly, Keflavik - Orlando service.

October 2015: Icelandair (ICE) is now expecting to deliver a full-year (EBITDA) of $210 to $215 million, compared with its original $160 to $165 million guidance, due to higher revenues and lower fuel and maintenance costs.

(ICE) had already upgraded its guidance to $180 to $185 million at the release of its 2nd-quarter results. However, its 3rd-quarter results (due for formal release at the close of business on October 29) will be “better than anticipated,” rising from $124 million to $150 million.

It has therefore ramped up its full-year outlook, based on an average euro to USA dollar exchange rate of 1.12 and fuel prices of $480 per tonne in November and $550 in December, excluding hedging.

Looking ahead to 2016, Icelandair (ICE) is planning to add +18% capacity (including new routes to Chicago, Montreal and Aberdeen) and increase its passenger numbers to 3.5 million, up +450,000 on 2015.

“A total of 26 airplanes will be used in the route network next summer, +2 more than this summer,” (ICE) said. These additional airplanes will be a pair of Boeing 767-300s, marking an upgauge from the Boeing 757s that form the backbone of Icelandair (ICE)’s fleet.

(ICE) has almost tripled its international network and passenger numbers since 2009. “In recent years, the company has been building up a secondary bank of flights with departures just before noon. Growth of the secondary bank presents an opportunity for 2 different departure times within the same day, eliminates the congestion at Keflavik Airport and supports the primary bank. In 2016, much of the growth will be outside the primary bank and not in the summer high season,” (ICE) said.

News Item A-2: "Icelandair Raises (3Q) Profits 20% as Fleet Upgrade Approaches" by (ATW) Alan Dron, November 3, 2015.

Icelandair (ICE) recorded a 3rd-quarter profit of +$103.1 million, up +20% from a net profit of +$85.8 million in the year-ago period. 3rd-quarter operating income was up +3% to $429.4 million year-over-year.

A combination of higher passenger revenues and lower fuel costs were the main reasons behind the improvement, Icelandair (CFO) Bogi Nils Bogason said.

9-month net profits rose +37% to +$111 million, compared to +$81 million for the year-ago period.

Full-year (EBITDA) is now estimated to be in the $210 - $215 million range, compared to +$154 million last year, with prospects for the last quarter of the year showing strengthening bookings, (ICE) said.

3rd-quarter passenger numbers rose +18% to 1.14 million, outstripping a +15% rise in (ASK)s to 4 million. Load factor for the quarter rose +3.1% to a record 87.3% LF year-over-year. (ICE) said 56% of passengers transited through its Reykjavik hub. For years, the Icelandic capital has served as a stopover point for passengers connecting between Europe and North America.

This year has seen the start of a fleet renewal for (ICE), which has long championed the Boeing 757 for its relatively long, thin routes. Its existing fleet consists of 24 Boeing 757-200s and 757-300s, which are being joined by 2 Boeing 767s. 3 Bombardier Dash 8-Q400s will replace 5 Fokker F 50s next year. In 2018, the 1st of 16 Boeing 737 MAX variants (9 -8s and 7 -9s) will start to arrive.

January 2016: (STG) Aerospace was selected by Icelandair (ICE) to install its next generation saf-Tglo SuperSeal UltraLite (SSUL) photo-luminescent floor path lighting for its Boeing 767 airplanes, becoming the 1st 767 operator for this newly certified system.

March 2016: Icelandair (ICE) on March 9 inaugurated flights to its 6th UK destination by launching services from its Reykjavik/Keflavik (KEF) base to Aberdeen (ABZ). (ICE) also serves Birmingham, Glasgow, Manchester, as well as London’s Heathrow (LHR) and Gatwick airports from the Icelandic capital. The 1,334 km sector will be served 4x-weekly by Air Iceland, which will use its 74-seat Dash 8-Q400s on the route.

April 2016: Icelandair (ICE) begins Boeing 767 Chicago (ORD) flights to 16 North American gateways with connections from 6 UK airports including London (LHR) and (LGW), Birmingham, Manchester, Glasgow, and Aberdeen airports.

May 2016: News Item A-1: Icelandair (ICE) commenced services between Reykjavik/Keflavik (KEF) and Montreal (YUL) on May 19. The 3,726 km sector will be served by (ICE) 4x-weekly using its 757-200s. The city pair will face direct competition from (WOW) air, with it having only launched services 2 weeks previous. Montreal becomes the 5th destination for (ICE), with it also serving Edmonton, Halifax, Toronto Pearson and Vancouver.

News Item A-2: Icelandair (ICE) has agreed to buy 2 more 767-300s.

(ICE) has signed a purchase agreement for +2 more Boeing 767-300s, which will undergo a complete refurbishment before entering service.

November 2016: "Icelandair May Consider Third-Party Services Long-Term" by James Pozzi, November 2016.

With the influx of new airplanes, Icelandair (ICE) has made significant changes to its maintenance operation in the past 5 years. Jens Thordarson, (ICE)’s VP Technical Operations, tells James Pozzi, MRO-Network.com about (ICE)'s (MRO) adjustments.

JP: (ICE)’s fleet is undergoing a modernization strategy. How is (ICE) meeting the challenge of managing maturing aircraft and welcoming new-gen models like the Boeing 737MAX into its fleet?

Read Jens Thordarson, (ICE) VP Technical Operations interview in "Management" below.

February 2017: News Item A: The Icelandair Group reported a 2016 net profit of +$89.1 million, down -20% from +$111.2 million in net income for 2015.

Revenue for the year increased +12.8% to $1.3 billion from $1.1 billion in 2015. (EBITDA) fell -3% to $219.8 million. (ICE) reported total international passenger numbers of 3.7 million in 2016, up +19.5% from 2015. International traffic was up +21.7% to 11.2 billion (RPK)s; international capacity increased +23.2% year-over-year to 13.7 billion (ASK)s, producing an international passenger load factor of 82.2% LF, down -1 point from 2015.

Regional flight passengers for the year totaled 322,700, up +8.9% from 2015. Load factor for the year on regional flights was 69.3% LF, down -5.1 points from 2015.

Passenger numbers climbed +15% from 2.26 million in 2013 to a record 2.6 million in 2014. Load factor was up +1.1% to 80.4% LF. The increase in passenger numbers was greatest on the tourist market to Iceland, a +23% rise year-over-year, accounting for 38% of total passenger numbers in 2016. On the Europe - North America service via Iceland, which at 50% is the company’s largest market, passenger numbers were up +22% in 2016.

Cargo traffic also increased in 2016, rising +4.9% from 2015 to 105.4 million (FTK)s.

As of December 31, 2016, (ICE)’s fleet totaled 48 airplanes, up +5 from 2015. 40 airplanes are owned; 8 are leased. The fleet comprises 29 Boeing 757-200s, 1 757-300, 6 767-300s, 1 737-700, 2 737-800, 2 Bombardier Dash 8-Q200s, 3 Dash 8-Q400s and 4 Fokker F-50s. The company has ordered 16 new 737 MAX 8 and MAX 9 airplanes, which are scheduled for delivery beginning in the 1st quarter of 2018. “The results for the year are the 2nd best in the company’s 80-year history, and on the whole operations were successful over the year in challenging conditions,” Icelandair (ICE) President & (CEO) Björgólfur Jóhannsson said.

But Jóhannsson cautioned about a recent turn of events that could make 2017 a troubling year. “At the beginning of this year, it is clear that circumstances are very challenging. (ICE)’s flow of bookings has taken a negative turn. Bookings are slower than expected, and average airfares in the market have fallen below projected levels,” Jóhannsson said. “We have seen news confirming that this development is affecting the airline industry in general. This trend can principally be traced to increased competition, but it can also be argued that uncertainty resulting from changes in international politics has affected demand. Currency trends have been unfavorable for the company compared to last year; in addition, fuel prices are rising.”

“We need to look to the future and determine how we intend to meet these changed circumstances. Icelandair (ICE) will make adjustments in the structure of its air fares and increase the diversity of its product offerings to meet increased competition and changed patterns of consumer behavior,” Jóhannsson said.

News Item A-2: Icelandair (ICE) is to undertake a modification program on its Boeing 757-200 fleet, through fitting them with Aviation Partners Boeing (APB)’s Scimitar Blended Winglets (SBW).

With 25 757-200s (plus a single 757-300) in its fleet, (ICE) the Icelandic flag carrier is the largest user of the Boeing narrow body outside North America.

The (SBW) uses existing Blended Winglet technology but adds new, aerodynamic “Scimitar” tips and a small outboard aerodynamic trailing edge wedge, which further cuts drag and increases the airplane’s efficiency. The airplanes already carry the earlier-generation Blended Winglet.

Work to fit the new aerodynamic devices has already started, with the 4th aircraft undergoing the modification and (ICE) expects to have 17 retrofitted by the start of the northern hemisphere summer season.

(ICE) Fleet Managing Director Andri Grétarsson said, “By adding the (SBW) to our 757-200 Blended Winglet fleet, we will further cut fuel consumption by >-1% on many flights, and therefore reduce emissions. This kind of technology helps us with our ongoing drive for carbon neutral growth by 2020.”

Like Nordic nations generally, environmental factors weigh heavily in Iceland. (ICE) has been rigorous in examining its flight operations to find economies, from reducing the amount of paper carried and extra water stored in the airplane’s tank, to implementing environmentally friendly airplane design updates.

2 767-319ER (26971, TF-ISP "ELDJA;" 28745, TF-ISW "GULLBORG"), ferried Xiamen to Keflavik.

May 2017: News Item A-1: The Icelandair Group reported a 1st-quarter 2017 net loss of -$34.9 million, widened from the -$17 million loss for the 2016 (1Q). The 1st quarter of the year is traditionally the weakest of the year for many airlines, but Icelandair (ICE)’s result was the heaviest (1Q) loss it had suffered for several years. Yields dipped -13% compared to (1Q) 2016 and the group was affected by adverse currency exchange rates.

Capacity grew +20% to 2.6 billion ASKs, with roughly two-thirds of that figure coming as a result of increased services to North America; the bulk of (ICE)’s flights connect Europe to North America via Keflavik airport in Iceland. However, Iceland itself has seen something of a boom as a tourist destination in recent years.

(ICE) saw a -9% drop in the price it paid for fuel in (1Q) 2017 compared to a year earlier and said that 59% of its estimated fuel usage over the coming year had been hedged at a “weighted average swap price” of $517/tonne.

In his outlook for the coming year, Icelandair Group President & (CEO) Björgólfur Jóhannsson said that among measures to improve profitability, an extra row of seats would be added to (ICE)’s fleet of 25 Boeing 757-200s, to lower unit cost by 2% to 3%. (ICE) still largely relies on the 757-200, with an additional single 757-300 and 4 767-300s making up the remainder of the fleet. It also leases in additional capacity and operates turboprops for domestic services.

The company plans to complement its 757s with a batch of 737 MAX 8s and 9s.

Icelandair (ICE) also intends to introduce measures to give (ICE) greater visibility on internet search engines and has consolidated its physical sales operation by closing sales offices in central Europe and Scandinavia. (ICE) said it expects “significant cost savings” to result from a review by (IATA) consultants of airplane and passenger handling services at Keflavik.

Greater utilization of belly cargo space is also being undertaken, while reducing the number of dedicated cargo flights operated. This move has already brought significant cost savings, Jóhannsson said, with more expected through 2017.

The group is anticipating an improved (EBITDA) of $145 to $155 million for 2017, up +$5 million on its previous forecast in February 2017. This is despite challenging conditions on North Atlantic routes, with fierce competition and a further reduction in yields anticipated.

News Item A-2: Icelandair (ICE) has selected USA technology company ViaSat to provide high-speed Wi-Fi for its incoming fleet of 16 Boeing 737 MAX 8s and 9s. The airplane retrofit will begin in March 2018 and continue through 2020, enabling passengers to browse the internet and stream content on flights to 18 North American and >25 European destinations. “Our investment in new technology, from ViaSat, will deliver 1 of the best internet experiences in the skies,” (ICE) Senior VP Sales & Marketing Guðmundur Óskarsson said.

The system will connect the 737 MAXs to the ViaSat-2 Ka-band satellite network over North America and the Atlantic Ocean, switching to ViaSat and Eutelsat’s Ka-band KA-SAT network over Europe. “This is a watershed moment for ViaSat, as this is the 1st time an airline will use our technology to offer full internet connectivity and internet streaming to passengers over the Atlantic Ocean,” ViaSat commercial mobility VP & General Manager Don Buchman said.

June 2017: Icelandair (ICE) continues to grow on transatlantic routes, but (ICE)’s expansion is affected by capacity limits at its Reykjavik hub and increasing competition from low-cost carriers (LCCs). “In 2016, (ICE) has grown >20%; this year we expect +12% growth. Around 50% of our business includes transfers between North America and Europe,” Icelandair Group President & (CEO) Björgólfur Jóhannsson said in an interview at the (IATA) (AGM) in Cancun.

August 2017: Iceland-based capacity solution provider Loftleidir Icelandic is to undertake a management contract with (TACV) Cabo Verde Airlines (TCV), as the archipelago’s government seeks to restructure and privatize the national carrier.

Cabo Verde (Cape Verde in English) is a cluster of islands off the NW coast of Africa that has become an increasingly popular holiday destination in recent years, especially for European tourists seeking to escape the continent’s winter months.

(TACV) Cabo Verde Airlines (TCV) operates a small network of routes to Western Europe, South America, West Africa and Providence, Rhode Island in the USA with a single Boeing 757-200.

One of the aims behind the agreement is to strengthen (TCV) so it can contribute to Cabo Verde’s potential as a year-round tourist destination. The Cabo Verde government also hopes to develop Cabo Verde’s geographic position as a connecting hub, linking 4 continents.

Loftleidir Icelandic is a subsidiary of Icelandair (ICE) and handles charter and (ACMI) wet-lease operations for (ICE). Its roles at (TCV) will include Network Planning, Marketing, Sales & Distribution Planning as well as the restructuring of (TCV)’s fleet.

Loftleidir-Icelandic operates as a capacity solution provider concentrating mainly on airplane and maintenance projects as well as consulting services. In addition to Boeing 757s, which makes up the bulk of Icelandair (ICE)’s fleet, it also operates 737-700 and 737-800s.

“We look forward to assisting (TACV) Cabo Verde Airlines (TCV) in developing further its untapped potential as a key player in the future air hub in Cabo Verde,” Loftleidir Icelandic Senior VP Marketing & Sales Erlendur Svavarsson said. “We believe that (TACV) Cabo Verde Airlines (TCV) is in a great position to take advantage of the unique geographical location of Cabo Verde. To this end, we will draw on the Icelandair (ICE) Group’s successful experience in building a hub-and-spoke system to support an air hub operation in Cabo Verde.”

Cabo Verde’s Minister of Economy & Employment José Gonçalves described the arrangement as “a mutually beneficial agreement with Loftleidir Icelandic leading to the restructuring and privatization of our national airline (TCV).

“We are very proud that Cabo Verde is in a privileged position as one of the very few countries in Africa to boast 4 international airports classified as Category 1 by the USA (FAA) and is a national airline certified as an (IOSA) Operator under the (IATA) Operational Safety Audit Program.

“The 2 companies have a long-standing relationship, and for decades Icelandair (ICE) provided ground support to (TACV) Cabo Verde Airlines (TCV) at Boston Logan Airport in the USA,” he said.

September 2017: Icelandair (ICE) began its 12th USA destination from its Reykjavik/Keflavik hub on September 6, with the introduction of 2x-weekly (Wednesdays and Sundays) flights to Tampa (TPA). The 5,779 km route is operated on (ICE)’s 183-seat 757-200s and faces no direct competition. Becoming Keflavik’s 23rd route in North America, the new service further consolidates the USA as the airport’s largest country market served.

November 2017: 757-27B (32-24838, TF-FIW "BURFELL") leased to (TACV) (TCV).

Fleet:
(definitions)

Click below for photos:
ICE-737 MAX - 2013-02
ICE-757
ICE-757 - 2016-05.jpg
ICE-757 TF-FIO
ICE-757 WINGLETS
ICE-757-200
ICE-757-200 - 2015-02
ICE-757-200-1
ICE-757-200-H
ICE-757-208
ICE-757-256 - 2015-02
ICE-757-256 - 2015-08.jpg
ICE-757-256 - 593-26242 - 2017-09.jpg
ICE-757-300
ICE-757-300-1ST DLVRY
ICE-757-308
ICE-757-308-X
ICE-767-300 - 2017-02.jpg
ICE-767-383ER
ICE-767-3YOER
ICE-787

November 2017:

0 737-3S3F (CFM56-3B2) (1445-23811, /87, TF-FIE "ARNDIS"), WET-LST (TNB). RTND (AWW) 2004-05. FREIGHTER.

0 737-408 (CFM56-3) (1721-24353, /89 TF-FIB; 2032-245063, /91 TF-FID, (BOU) LSD 1999-06). (24532 RTND 2000-04, LST (BXI). 24353 RTND (TCI), LST (GBN) 2001-04. 24804 SOLD. 25063 RTND, LST (CRM) 2002-05. (ETOPS). 147 PAX.

1 737-700 (CFM56-7B).

2 +8/5 ORDERS 737-800 (CFM56-7B), 5 TO BE LST (BEJ), 4 TO BE LST (HNA) 8 YRS, 2006-08 OT 2006-12.

16/8 ORDERS (2018-02) 737 MAX 8, 153Y & MAX 9, 172Y:

9/? ORDERS (2018-02) 737 MAX 8, 152Y:

7/? ORDERS 737 MAX 9, 172Y:

1 757-2YO (26151, TF-FIK), (GEF) LSD 2009-10, EX-(G-ZAPU).

1 +2 ORDERS 757-200 (RB211-535E4).

1 757-204PCF (RB211-535E4) (440-26962, /92 TF-CIB), 2006-03. (ICE) CARGO OPS. FREIGHTER.

6 757-208 (RB211-535E4) (273-24739, /90 TF-FIH "HAFDIS;" 281-24760, /9O TF-FII "FANNDIS;" 368-25085, /91 TF-FIJ "SURTSEY;" 780-28989, /98 TF-FIN "ELDBORG;" 859-29436, /99 TF-FIO "KRAFLA" - SEE PHOTO; 916-30423, 4/00 TF-FIP "LEIFUR ERIKSSON") (ALL 757'S (ETOPS). 24760 RTND, LST (AVI) 2004-12. 24760; RF (BMA). 24760; WET-LST (AMV) 2006-10. 24760; WET-LST (NIU) 2008-03. 24760; RF (BBR) 2010-06. WINGLETS. 16C, 173Y.

2 757-208 (RB211-535E4) (30423, TF-FIP "SNAEFELL;" 956-30424, /01 TF-FIV "GUDRIDUR PORBJARNARDOTTIR"). WINGLETS. 22C, 167Y.

3 757-223 (24595, TS-ISF "LAKI;" 24606, TS-ISK "ELDFELL;" 25295, TF-ISL "ORAEFAJOKULL" 2012-07).

1 757-225 (155-22691, TF-LLY), WET-LST (SHR) 2009-04.

1 757-23APF (RB211-535E4) (237-24456, /89 TF-FIG), EX-(CHA), (AWW) 5 YR LSD 1999-09. FREIGHTER.

2 757-23AF (RB211-535E4) (257-24567, /90 TF-FID, 6/05; 255-24566, /89 TF-FIE, 2005-08), (AWW) LSD. (ICE) CARGO OPS. FREIGHTER.

0 757-23APF (RB211-535E4) (314-24868, /94 TF-FIT), EX-(CAM), (AWW) LSD 2003-11. WET-LST (TNB). RTND 2004-07. (ICE) CARGO OPS. FREIGHTER.

1 757-23N (TF-FIC), IN LIGHT PINK "UNITED NATIONS" TITLES. SEEN FRANKFURT AIRPORT (FRA) 2011-11.

1 757-23NER (RB211-535E4) (895-30233, /99 LY-SKR), EX-(LSK)/(MOV)/(AAT). FLYCORP ST TO (ICE). 220Y.

1 757-256 (RB211-535E4) (29310, TF-FIA "HERDUBREID;" 200Y.

1 757-256 (RB211-535E4) (593-26242, /94 TF-FIR "VENNAJOKULL"), WITH "80 YEARS OF AVIATION 1937 - 2017" ON FUSELAGE, EX-(ARE), (CIF) LSD, WET-LST (AOO) 2002-07. RETURNED. WITH WINGLETS. 200Y.

1 757-256 (RB211-535E4) (603-26243, /94 TF-FIU "HEKLA"), WET-LST (VLR) 2004-05. RF (VLR) 2004-10. 200Y.

1 757-256 (R211-535E4) (616-26244, /94 TF-FIT "HELGAFELL"), (SNR) LSD 2005-04. WET-LST (AXY) 2005-04. 214Y.

1 757-256 (RB211-535E4) (617-26245, /94 TF-FIS), EX-(NAB), (SNR) LSD 2003-03. RF (AVI) 2003-12. WET-LST JET GREEN 2004-04. RF JETGREEN 2004-05. WET-LST (ADH) 2004-05. WET-LST (ISA) 2004-06. WET-LST (VLR) 2004-07. RF (VLR) 2004-10. 12C, 190Y.

2 757-256 (RB211-535E4) (26247, TF-ISV; 26249, TF-ISJ), EX-(EI-DUA & EI-DUD) 2015-11.

1 757-256 (RB211-535E4) (30052, TF-FIZ "KEILIR"). 200Y.

1 757-27B (RB211-535E4) (302-24838, /90 TF-FIW "BURFELL"), EX-(CDF), (VNI) LSD 2000-02, WET-LST (SCZ) 2001-06; WET-LST (AOO) 2002-07. LST (AXY) 2005-02. WET-LST (BLE) 2005-05. RF (BLE) & WET-LST (SYL) 2007-02. 24838; WET-LST (NIU) 2013-05. 24838; LEASED TO (TACV) (TCB), CAPE VERDE 2017-11. 14C, 194Y.

0 757-28A (RB211-535E4) (704-26276, /96 TF-FIK "SOLDIS"), (ILF) LSD TIL 2004-03, TO (FGC) 2007-12. 16C, 173Y.

1 +4 OPTIONS 757-308 (RB211-535E4) (1004-29434, /02 TF-FIX "HENGILL"), CANCELED 2ND. 22C, 206Y.

3 767-300 (PW4060). 42C, 185Y.

1 767-3YOER (PW4060) (405-24953, /91 TF-FIA), (TCI) LSD 2003-05. WET-LST (VLR) 2004-02. RF (VLR), WET-LST (AV8) 2004-05. WET-LST (ISA) 2004-07. WET-LST (YES) 2004-11. WET-LST (BBR) 2005-11. LST (ELA) 2006-05 AS (4X-EAP). 42C, 185Y.

2 767-319ER (26971, TF-ISP "ELDJA;" 28745, TF-ISW "GULLBORG"), FERRIED XIAMEN TO KEFLAVIK 2017-02.

1 767-383ER (PW4060) (309-24846, /90 TF-FIC), EX-ICON CAPITAL 2005-01. 18C, 243Y.

1 767-383ER (PW4060) (395-25365, /91 TF-FIB), AV INVESTORS LSD, WET-LST (AV8) 2003-12. RF (AV8) 2004-04. WET-LST (BRI) 2004-05. WET-LST (EXD) 2004-06. WET-LST (BBR) 2006-10. 25365; RF TRAVEL SERVICE (TSF). 25365; LST (NIU) 2013. 30C, 239Y.

2 ORDERS 787-808 (TRENT 1000), 3 ACQUIRED BY (NWG):

8 ORDERS A330-200F (TRENT 700), FOR (ICE) CARGO OPS. FREIGHTER:

2 BOMBARDIER DASH 8-Q200.

3 BOMBARDIER DASH 8-Q400 REPLACED F 50'S STARTING IN 2016, AIR ICELANDIC OPS. 74Y.

4 F 50, TO BE REPLACED BY DASH 8-Q400'S, AIR ICELANDIC OPS.

Management:
(definitions)

Click below for photos:
ICE-1-BIRKIR HOL GUDNASON - 2015-02
ICE-1-Birkir Holm Gudnaoson-2015-08.jpg
ICE-CEO
ICE-SVP FIN
ICE-SVP MKTG
ICE-SVP OPS

SIGURDUR HELGASON, CHAIRMAN.

BJORGOLFUR JOHANNSSON, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO) (ICE) GROUP.

BIRKIR HOLM GUDNASON, (CEO) (ICE).
May 2012: Interview by anna.aero Editor, Ralph Anker:
This month, Icelandair (ICE) launched flights to Denver in Colorado, (ICE)’s 9th destination in North America (after Boston, Minneapolis/St Paul, New York City, Orlando, Seattle, and Washington in the USA, and Halifax and Toronto in Canada). anna.aero was present at the launch of both flights to and from Denver and took the opportunity to chat briefly with (ICE)’s (CEO), Birkir Holm Gudnason.

anna.aero: Your new 4x-weekly service to Denver sees the aircraft parked overnight in Denver. Why is that?
Gudnason: There are a couple of reasons. The Denver route is 1 of 3 routes we operate that is >5,500 kms (the others are Orlando and Seattle) and this means if we flew the 757 straight back, it would not arrive during 1 of our 2 connecting ‘waves’ in Keflavik. By leaving the airplane parked overnight, as we do in Orlando and Seattle, we can save on crew costs and get the airplane to arrive back in time for the morning ‘wave’ to connect with our European outbound flights. Also, with our fleet of 757s, the fixed costs are relatively low, so parking them on the ground is not such a big issue for us.

anna.aero: You basically have a single fleet type of 757s, but these are no longer manufactured. What are your future fleet plans?
Gudnason: The 757 suits our network very well. This summer, we will have a total of 16 757s serving our network, +2 more than last year. All the airplanes have been refurbished in recent years with leather seats and personal in-flight entertainment (IFE) systems. Given the relatively long average sector length that we operate, this results in less stress on the airframe. We believe the 757s still have many years of useful service ahead of them.

anna.aero: What other plans do you have for your route network?
Gudnason: Apart from launching flights to Denver this summer, we are also increasing frequency on a number of our other routes to Europe and North America. This summer, we will be offering more seats to more destinations that ever before in the airline’s history, and around +14% more than in 2011, which should result in us carrying around 2 million passengers. We recently announced that in addition to our 2 daily flights to London Heathrow (LHR), we will be starting 2x-weekly flights to London Gatwick starting in mid-October. We are also evaluating a number of other routes for 2013.

JON KARL OLAFSSON, PRESIDENT (2005-04).
Jón Karl started working for Flugleiðir in 1984. He began work in the Group’s finance department and then became a manager of Icelandair (ICE)’s route network. Later, he was the General Manager of (ICE)’s office in Frankfurt Germany for 5 years. Jón Karl has been the Managing Director of Air Iceland since 1999. Jón Karl graduated from the University of Iceland’s business depertment in 1984. He was born in 1959 and is married to Valfríður Möller and they have four children. He was appointed Icelandair (ICE) President and (CEO) in June 2005 and President & (CEO) of Icelandair Group in October 2005.

PETUR ERIKSSON, MANAGING DIRECTOR & PRESIDENT CARGO DIVISION.

BOGI NILS BOGASON, CHIEF FINANCIAL OFFICER (CFO).

ANDRI GRETARSSON, FLEET MANAGING DIRECTOR.

LEIFUR MAGNUSSON, SENIOR VP FLEET DEVELOPMENT & SAFETY.

GUDMUNDUR PALSSON, SENIOR VP FLIGHT OPERATIONS & TECHNICAL SERVICES.
Mr Pálsson originally joined Icelandair (ICE) in June 1974, and served initially in the Budget and Long Range Planning Department. In 1980, he became Director of Cash Management and Insurance and served that position until January 1986 when he was appointed Senior VP Operations and served in that capacity until May 1988, when he was appointed Senior VP Technical. Has been Senior VP Operations and Technical Services since May 1996. Born in Reykjavík, Iceland, on 19 April, 1949, Mr Pálsson graduated with a degree in Economics from the University of Iceland in 1974. He is married to Íris Níelsdóttir Dungal, and they have one daughter and three sons.

HLYMUR ELISSON, SENIOR VP FINANCE.
Hlynur started at Icelandair (ICE) Domestic in 1995 as Director of Finance and has been in that position at Air Iceland since 1997. Hlynur was appointed Icelandair (ICE) Senior VP of Finance in 2005. Hlynur is 39 years old with a BS in Business from Rockford College, Illinois. He is married to Addý Ólafsdóttir and they have one son.

GUOMUNDUR OSKARRSON, SENIOR VP MARKETING & SALES.

ERLENDUR SVAVARSSON, SENIOR VP MARKETING & SALES FOR LOFTLEIDIR ICELANDIC.

EINAR SIGURDSSON, SENIOR VP STRATEGY & ADMINISTRATION.

RAGNHILDUR GEIRSDOTTIR, SENIOR VP RESOURCE MANAGEMENT.

JENS THORDARSON, VP TECHNICAL OPERATIONS
"Icelandair May Consider Third-Party Services Long-Term" interview by James Pozzi, MRO-Netwok.com November 2016.

JP: Icelandair (ICE)’s fleet is undergoing a modernization strategy. How is (ICE) meeting the challenge of managing maturing aircraft and welcoming new-gen models like the Boeing 737MAX into its fleet?
JT: First of all, it is important to state that we will operate the current generation fleet for many more years. The Boeing 757 IS still a perfect fit for our network and our order for 737MAX aircraft will complement our 32 757/767 aircraft and allow us to retire a few. A fleet transition is an interesting challenge but Icelandair (ICE) is on track with all of its milestones to meet 737MAX entry into service (EIS), which is 15 months away. There are a lot of decisions to make in terms of whether to build up in-house maintenance capabilities and to invest in assets or go for many of the new, more creative solutions on the market such as flight-hour based agreements. We will probably invest in some capabilities for the airplanes, but we also are ready to look at the pool of capabilities in the market, especially early on, when we will only be operating a few of the new type.

JP: In which areas has (ICE) focused on expanding its capabilities in recent years?
JT: We’ve made a strategic decision to add heavy maintenance capacity at our facility in Keflavik. From its opening, the new facility will be fully booked with (ICE) airplanes1 but as we get further into fleet modernization, we might well try our luck in the market for 3rd-party work as we did quite successfully in the last decade or so before (ICE)’s rapid expansion of the past few years. As a part of fleet growth and entry into the market for services for 757 components, (ICE) is also looking to increase its shop capabilities in Iceland. This is underpinned by a strong interest in aviation-related work in the country.

JP: What can you tell us about (ICE)’s new maintenance facility scheduled to open in 2017? How will this impact workloads?
JT: The new facility will open in September 2017 and in it a new heavy maintenance line will be operated, which will double our heavy maintenance capacity. The new hangar also will be able to fit one additional narrow body airplanes for intermediate maintenance such as modifications and other work. We will be able to fulfill most of (ICE)’s needs for heavy maintenance and initially, there will not be much capacity for 3rd-party work. In the future, that might change.

JP: At which stage is the Technical Division on its paperless operations journey? What were the challenges of digitizing the operation?
JT: We are on the verge of a paperless cockpit after several false starts. There are so many processes that need upgrading, along with equipment installation and software development that this has been a daunting task but the fruits of this labor in terms of information availability and oversight, are tremendous. The (MRO) is behind in this respect mainly due to regulatory issues as electronic signatures seem to be surprisingly low on (EASA)’s agenda. Before there is a clear policy on these (the benefits of paperless (MRO) will always be severely limited).

JP: Where have been some of the key investment areas for the maintenance team in recent years?
JT: Besides the additional capacity, we have invested in capability in Iceland for basic aircraft maintenance engineer training. Previously this was not possible in Iceland and so very few people graduated. Icelandair (ICE) encouraged and assisted local academies to build up capability to do basic training in Iceland, and after that, we have seen a boom in the interest in this line of work, fulfilling our needs for the near future. We also have upgraded our software systems and invested in component stocks for in-house use and 3rd-party support.

JENS BJARNASON, VP TECHNICAL SERVICES.

GUOJON ARNGRIMSSON, VP CORPORATE COMMUNICATIONS.

GUNNAR EKLUND, GENERAL MANAGER AMERICAS.

ANDRES JONSSON, GENERAL MANAGER UK.

KRISTINN HALLDORSSON, DIRECTOR FLEET MANAGEMENT (1999-02).

VALDIMAR SAEMUNDSSON, DIRECTOR TECHNICAL OPERATIONS (1999-02),
(vs@icelandair.is) (KEFMZFI).

KJARTAN JONSSON, DIRECTOR NETWORK PLANNING.

GUDMUNDUR OSKARSSON, DIRECTOR MARKETING & BUSINESS DEVELOPMENT.

BALDUR BRAGASON, MANAGER MAINTENANCE.

ARNOR THORHALLSSON, MANAGER ENGINEERING, (arnor@icelandair.is) (KEFMEFI).

OLAFUR MARTEINSSON, MANAGER QUALITY ASSURANCE (QA).

MS MELISSA ANDRETTA, MANAGER MARKETING & COMMUNICATIONS.

 
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