Icelandair: Financial Results Q2 2026

• Record revenue of USD 496.2 million, a 7% increase year-on-year
• Negative EBIT of USD 29.6 million, compared to positive EBIT of USD 0.8 million last year, driven by elevated fuel expenses
• Underlying profitability improved on an ex-fuel basis, while fuel expenses increased by USD 72.5 million year-on-year, or USD 41.0 million net of hedging gains
• Net loss of USD 32.3 million compared to a profit of USD 12.9 million in 2025, with last year’s financial income positively impacted by foreign exchange movements
• Strong yields and load factor drove an 8% increase in unit revenue
• Underlying unit cost growth at 7%, while higher fuel prices drove reported unit cost increase up to 15%
• Liquidity position of USD 603.6 million at quarter-end, up USD 31.4 million compared to Q2 last year
• The outlook for the third quarter is positive, with EBIT expected to improve and unit revenues to reach record levels

Bogi Nils Bogason, President and CEO:

“The operating environment was challenging in the second quarter due to significant increases in fuel prices, but we still achieved considerable improvements in many areas and the results were in line with our financial guidance for the quarter. We delivered record revenue, and excluding higher fuel prices, underlying EBIT improved year-on-year. Yields increased between years, load factor was strong and on-time performance remained robust. In response to the current market conditions, we have adjusted capacity, implemented fare increases, maintained a strong focus on cost control and decided to phase out our Boeing 757 aircraft sooner than we originally planned.

The revenue outlook for the third quarter is strong, with unit revenues expected to be the highest the Company has recorded, supported by robust demand to and from Iceland, in addition to exceptionally high demand for travel to Iceland around the solar eclipse in August. We do expect EBIT in the third quarter to improve compared to last year.

We continue to renew our fleet and have secured new aircraft that will create new opportunities and further strengthen our route network. To fully capitalize on these opportunities, it is necessary that we remain competitive across every part of the business. This includes ensuring that new collective bargaining agreements support our long-term plans while we continue to offer attractive jobs and good working conditions in Iceland. It also means advancing initiatives that help us better manage seasonality in our business. These efforts are first and foremost a part of reinforcing our hub and operations in Iceland.
Our financial position is strong, providing the resilience and flexibility needed to invest in future growth while navigating an ever-changing operating environment. Finally, I would like to thank our customers for their continued loyalty and our employees for outstanding work. They are the foundation of our success.”

Investor presentation 22 July 2026

An investor presentation will be webcast in relation to the publication of Q2 results 2026 at 8:30 GMT on Wednesday, 22 July 2026, at https://icelandairgroup.com. Bogi Nils Bogason, President & CEO of Icelandair, and Ivar S. Kristinsson, CFO, will present the Company’s results and answer questions. The presentation will take place in English and will be accessible after the meeting on the Company’s website and under Corporate News on the Nasdaq Nordic website: http://www.nasdaqomxnordic.com/news/companynews

Financial Calendar

• Q3 2026, 22 October 2026
• Q4 2026 Results and Consolidated Financial Statement 2026, 4 February 2027