Significant revenue and load factor improvement in Q1 2022

• Operating income USD 158.7 million up from USD 57.3 million
• Passenger revenue increased more than eightfold
• Net cash from operations USD 83.9 compared to net cash to operations of USD 45.3 million in Q1 last year
• EBIT USD -58.3 million compared to USD -46.2 million with average fuel price up by 75% compared to last year
• Operating expenses during the quarter include investment related to peak season
• Capacity 58% of 2019 levels
• Load factor 67.2% despite negative Omicron effect
• Almost 200 employees recruited during the quarter
• Total liquid funds available at end of March USD 383 million

Bogi Nils Bogason, President and CEO

"We continued successfully ramping up our operations in the first quarter of the year, increasing our capacity ninefold despite the impact that the spread of the Omicron variant had on travel. With disciplined network management and by using the flexibility of our operations, we adapted to the situation in each of our markets and achieved a load factor of 74% in March. Various factors impacted our performance, such as the steep rise in fuel prices, the Omicron impact on demand and considerable cost related to the preparation of our ambitious summer schedule. However, the financial results were in line with management expectations. I would like to extend my thanks to our employees who have done an outstanding job over the past months finding solutions to every challenge.

The bookings for the summer are strong for all our markets and we expect our flight schedule to reach around 77% of pre-Covid capacity in the second quarter and 85% in the third quarter. Coming out of the pandemic, it is clear that Iceland is a popular destination with total capacity through Keflavik airport exceeding pre-Covid levels in the coming months. This is also driven by a capacity shift due to various external factors affecting the global aviation markets. It is evident how crucial it has been to make sure to safeguard our infrastructure as well as that of the country´s tourism industry during the pandemic to ensure that we are all prepared to meet the high demand this summer and ensure an enjoyable journey for our visitors.

We are optimistic for the future and despite various outside pressures, the pent-up demand we have been seeing is realizing and people have started traveling again."