The operation of the Czech airline Travel Service will become part of Icelandair Group in Q4 of 2007, but not in Q3 as had been announced. Finalizing the agreement took longer than planned, but the delay does not affect the agreement itself. This means that the influence of the inclusion of Travel Service, on the operation of Icelandair Group in 2007, will be less than anticipated. The 2007 turnover is now expected to be approximately 62-63 billion ISK.

The Icelandair Group Q3 EBITDA profits will be below the company’s expectations. In addition to the above mentioned delay the main reasons are lower revenue in Icelandair scheduled passenger operation due to the strong currency of the ISK and lower yields. Maintenance cost within the Group is higher than expected and the currency development affects export from Iceland and hits the operation of Icelandair Cargo. Bluebird Cargo project status was also below expectations for a time.

Icelandair Group will announce its Q3 results on November 13, 2007.