ICELANDAIR SHOWS HEALTHY LOAD FACTOR INCREASE FOR MARCH 2005

(PRLEAP.COM) Columbia, MD, April 26, 2005 - Icelandair transported a total of 106 thousand passengers in March 2005 compared to 87 thousand in March last year, an increase of 21.8%. ASK (Available Seat Kilometers) increased by 10.7%, RPK (Revenue Passenger Kilometers) increased 24.2% and load factor increased 8.7% from last year.

In the first three months of the year Icelandair’s total passenger traffic was 249 thousand or 14.2% more than in 2004. ASK increased by 10%, RPK and the passenger load factor increased 3.7% from the year before.

Icelandair Cargo transported 0.9% more tons of cargo and mail in March 2005 compared to the same period last year and in the first three months of the year has increased is 3.7% compared to 2004.

In March, the number of block hours (the time that the aircraft is in use; from gate to gate) at Loftleidir-Icelandic increased 7.3% compared to the same month last year and increased 3.8% for the first quarter compared to the same period in 2004.

Icelandair U.S. gateways offer nonstop service from New York (JFK), Boston, Baltimore/Washington (BWI), Minneapolis/St. Paul, Orlando and San Francisco (starting May 18, 2005) to the airlines hub in Reykjavik, Iceland. Nonstop flights continue to Denmark, Norway, Sweden, Finland, Great Britain, Germany, Holland and France.

For additional information please contact your Professional Travel Agent, call Icelandair at (800) 223-5500 or visit www.icelandair.com

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