Icelandair Group was awarded the new annual Transportation Award, created by the Icelandic Minister of Transportation, on 21 August 2007. This new award is presented to Icelandair Group in recognition of its contribution in the field of aviation and its pioneering work in building up the aviation and travel industry in Iceland.

This new award is awarded annually to an individual, organization or company that has made an outstanding and significant contribution to the development of Icelandic transportation. The award is based upon a contribution to all aspects of transportation and its development. The selection panel was put together by the former minister for transportation and was lead by chairman Ingimundur Sigurpálsson. Besides Ingimundur, the panel was made up of economist, Sigríður Finsen, sociologist Kjartan Ólafsson and Kristjan Mar Unnarsson, news reporter. Jóhannes Tómasson, the ministry information officer also participated.

Jon Karl Olafsson, CEO of Icelandair Group, accepted the award. In his acceptance speech he thanked the Icelandic government on behalf of all his predecessors and the staff of Icelandair Group. He went on to state that the award was a welcome acknowledgement of the importance of the work of Icelandair Group and its companies in the establishment of the Icelandic travel industry and the role it has played in the development of the Icelandic economy as a whole.

The Icelandic Minister of Transportation, Kristján L Möller, said in a speech during the award ceremony that it was only natural for the ministry to create an award like this. Transportation is a vital component on advanced societies and this award was a reflection of its importance and the need for continued development.