• Record revenue of USD 346.5 million, up by 21%
• Improved operating performance with EBIT loss totaling USD 53.3 million, USD 8.9 million improvement year-on-year
• Significant EBIT margin improvement, negative 15.4% compared to negative 21.7% last year
• Net loss totaled USD 45.3 million compared to USD 44.1 million in 2025, with last year’s loss positively impacted by financial currency gains
• Improved yields and record load factor delivering 7% increase in unit revenue
• Efficiency improvements resulted in unit cost remaining unchanged year-over-year despite considerable salary increases and unfavorable currency fluctuations
• Icelandair was one of the most punctual airlines in Europe in Q1 2026, with an OTP of 82.0%
• Strong liquidity position of USD 616.3 million at the end of Q1, up by USD 106.8 million compared to Q1 last year

Bogi Nils Bogason, President & CEO

“We achieved considerable improvements in the first quarter. We delivered record revenue which reflects our focus on the markets to and from Iceland which yield better margins in the current market environment than the transatlantic market. We increased capacity by 13% in line with our strategy of improving infrastructure utilization. Despite this increase, we achieved a record load factor in the quarter and were one of the most punctual airlines in Europe despite considerable weather-related disruptions in Iceland in March. Cargo revenue also increased between years and our leasing business delivered strong profitability in the quarter. Currency fluctuations and salary increases had a negative impact on cost development, but we continued to drive on-time performance and operational efficiencies across the Company.

The sharp increase in fuel prices did not materially impact the results for the first quarter, but will have a greater impact from the second quarter. To respond to the situation we have reduced capacity by around 2% from mid-April to the end of June. Fare increases are inevitable and fares have been increased since the start of the fuel spike. This has, however, not had material effects on demand at this point in time.

Various external factors impact airline operations and it is therefore important that we ensure long-term predictability in as many areas as possible, such as the collective bargaining agreements that are currently being negotiated. The focus of the negotiations with our three key unions is to be able to continue to provide attractive aviation jobs in Iceland by ensuring the Company's competitiveness, supporting our network and fleet growth and driving operational flexibility. In addition, discussions with the Icelandic Government are ongoing about the importance of safeguarding Iceland’s competitiveness within the European regulatory environment, particularly regarding the ETS system and other climate costs.

The Company’s financial position is robust and has improved by USD 107 million compared to the same time last year, which puts us in a strong position to take on the challenges ahead, coupled with continued emphasis on cost control and operational efficiencies. Finally, I would like to extend my sincere thanks to all our employees for their dedication and hard work, especially during the challenging weather events in March, when everyone went above and beyond to find solutions, consistently prioritizing safety and the best interests of our passengers.”

Investor presentation 29 April 2026

An investor presentation will be webcast in relation to the publication of Q1 results 2026 at 8:30 GMT on Wednesday, 29 April 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

Information

Investors: Íris Hulda Þórisdóttir, Head of Investor Relations. E-mail: iris@icelandair.is
Media: Ásdís Pétursdóttir, Director of Communications. E-mail: asdis@icelandair.is

Financial calendar

• Q2 2026, 21 July 2026
• Q3 2026, 22 October 2026
• Q4 2026 Results and Consolidated Financial Statement 2026, 4 February 2027