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1 We bring the spirit of Iceland to the world Q3 2026 Financial Results l 23 October 2026 Bogi Nils Bogason, President and CEO Ívar S. Kristinsson, CFO
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2 2 Record revenue and improved profitability in Q3 Record revenue USD 655m up 12% year-on-year while capacity is down 6% Our biggest Q3 top-line ever Strong liquidity USD 550m up USD 48m year-on-year Strong load factor 86.5% of seats filled in Q3 EBIT USD 120m up 46m year-on-year ONE transformation USD 40m Q3 impact; USD 138m annualized at full implementation Rebalanced network 61% to/from passengers in Q3, up from 47% in Q3 2024 Q3 2024 47% 48% Q3 2025 54% 42% Q3 2026 61% 35% To/from Via Within Strategy in action: strong ISK and a weak via market call for a to/from focus
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3 3 Our underlying performance is stronger than the reported results show Source: Central Bank of Iceland (real exchange rate based on relative unit labor costs, Q2 2026) and Bloomberg (jet fuel), accessed October 22nd, 2026 High fuel prices FX and Icelandic conditions Industrial action ~1,600 USD/mt in Oct 2026, more than twice the 2008-2025 average HEDGING IMPACT IN Q3 USD 28m lower fuel cost; 46% hedged below 700 USD/mt A triple hit on our results Faster cost inflation Wages rising faster than in our competitor markets A stronger ISK +15% since Q1 2025, a historical high in real terms Revenue mix amplifies FX USD & CAD greater net exposure than most peers, both have weakened against ISK Adjusted for these factors, the strength of our underlying operations stands out × × $→kr USD 4.0m negative EBIT impact in Q3 Strike led by the Association of Aircraft Maintenance Technicians in September
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4 4 A strong core business, and an exciting future ahead DESPITE THE HEADWINDS Our underlying business is strong, and we keep preparing for the future A modern fleet Almost fully new-generation, with the longer-range A321XLR ahead A wider network New destinations and more reach through our Keflavík hub Stronger partnerships Extending our reach beyond the network we fly ourselves A leaner Icelandair Simpler and more automated, built for lasting profitability
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5 5 Financial results Ívar S. Kristinsson, CFO
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6 6 Improved passenger mix drives higher yields in Q3 2026 Yield up 17% and load factor reached 86.5% despite 6% lower capacity Traffic data passenger network Q326 vs. Q325 ASK: Available Seat KM, RPK: Revenue Seat KM, Load factor: RPK/ASK, OTP: On-Time-Performance, OTK: Operating Tonn KM -6% -5% 17% -3% 8% 11% -20% 1% -3% Capacity ASK Passenger Traffic RPK Load Factor Yield Passengers all markets Passengers To Iceland Passengers From Iceland Passengers Via Iceland Passengers Within Iceland On-time- performance CO2 Emissions per OTK 0.6 ppt -1.9 ppt Icelandair’s on-time performance in Q3 2026 81.2%
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7 7 USD million Q3 2026 Q3 2025 Change Passenger revenue 579.0 522.1 11% Cargo revenue 20.2 18.2 11% Leasing revenue 28.7 22.1 30% Other operating revenue 27.1 22.8 19% Operating income 655.0 585.3 12% Salaries and salary related 120.7 114.7 5% Aircraft fuel 131.5 118.6 11% Other aviation expenses 111.2 107.2 4% Other operating expenses 126.0 124.1 2% Operating expenses 489.3 464.6 5% Depreciation and amortization 45.4 46.3 -2% EBIT 120.3 74.4 - EBIT ratio 18.4% 12.7% 5.7 ppt EBT 116.4 72.1 - Net profit 96.7 57.3 - EBIT per segment USD million Key drivers Q326 vs. Q325 • Higher yields and a stronger passenger mix lifted passenger revenue by 11%, despite 6% lower capacity • Revenue growth outpaced cost growth, with operating income up 12% versus a 5% increase in operating expenses, lifting the EBIT margin to 18.4% • Fuel hedging and fleet efficiency softened higher fuel prices, limiting the increase in fuel expenses to 11% • Leasing strengthened profitability, with revenue up 30% and a 19% EBIT margin, while higher fuel costs weighed on Cargo’s result Profit loss statement USD million Cargo 115.0 69.2 -0.2 0.4 5.5 4.7 120.3 74.4 Icelandair totalLeasingRoute network +45.8 -0.7 +0.8 +45.9 Q326 Q325 Q3 profitability improved significantly on strong passenger revenue growth Operating income increased 12% year-on-year, driving EBIT up to USD 120.3 million
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8 8 Q3 fuel expenses rose 11% year-on-year Hedging and fleet efficiency partly offset higher fuel prices Fuel cost changes Q3 2025 vs. Q3 2026, USD million • Higher fuel prices added USD 54.7m, outweighing savings from hedging and efficiency. • Fleet renewal and efficiency reduce fuel costs and support sustainability goals. • Emission costs fell USD 4.7m due to 2025 SAF refunds, free allowances ~16% above estimates and lower production. Excluding production, costs fell USD 3.3m year-on-year. • Q4 hedges cover ~45% of fuel consumption at USD 722/ton. Q325 Production impact Fuel Price Hedges Fleet changes & efficiency Emission costs Q326 118.6 -6.8 -28.4 -3.3 -3.3 131.5 54.7 +11% Key drivers Q3 2025 vs. Q3 2026 Fuel hedges Tonnes, % of consumption, USD/ton 45% Q4 26 24% Q1 27 18% Q2 27 12% Q3-Q4 2027 34,000 15,300 15,800 12,100 $722 $900 $731 $764
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9 9 EBIT bridge Q3: Main changes compared to last year EBIT Q326 vs. Q325, USD million Stronger revenue lifted EBIT despite higher fuel costs EBIT improved by USD 46 million, with the RASK–CASK ex-fuel spread widening by 35% EBIT Q3-25 Revenue1 Operating costs2 Fuel cost3 Currency impact 4 EBIT Q3-26 -4.5 -12.9 +120.3 +74.4 +61.6 +1.6 +45.9 million 1On fixed FX 2On fixed FX, excluding fuel and emission costs 3Including emission costs 4Net impact on revenue and cost, after hedges Q3 CASK ex-fuel Q3 RASK 5.68 6.15 8.69 10.21+0.47 US cents +1.52 US cents 2025 2026 Underlying unit economics improved in Q3 The RASK-CASK ex-fuel spread expanded by 35% YoY +35% spread expansion between years EBIT level Favorable Unfavorable
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10 10 Strong demand continues to support revenue quality Higher yields, stronger load factor and favorable traffic mix drove an 18% increase in RASK year-on-year Key drivers Q326 vs. Q325 Main changes in unit revenue Q326 vs.Q325 in US cents • Load factor reached a strong 86.5%, up 0.6 percentage points compared to last year • Average yield was up 17% year-on- year • Yield growth was driven by a higher share of passengers traveling to and from Iceland • Capacity was adjusted to market conditions and fuel price volatility • Sustained RASK growth over four quarters, with a 10% improvement on a rolling 12-month basis Q425 Q126 Q226 Q326 L12M 5% 7% 9% 18% 10% Sustained improvement in unit revenues Year-on-year RASK development by quarter and on a rolling 12-month basis RASK Q325 Load factor Yield Other revenue RASK Q326 8.69 10.21 0.07 1.41 0.04 +18% RASK Favorable Unfavorable
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11 11 Key drivers Q326 vs. Q325 Main changes in unit cost excluding fuel Q326 vs. Q325 in US cents • Reported CASK up 10%, with fuel accounting for ~40% of the increase • CASK ex-fuel up 8%, driven by network mix, fleet renewal, salary increases and September’s mechanics’ strike • Underlying ex-fuel CASK increased by 6% on a fixed FX basis • Smaller Gauge (fewer seats per flight) raises unit costs as costs are spread across fewer seats but improves RASK • Higher share of European flying increased unit costs but strengthened profitability • Fleet renewal increased non-fuel costs while enhancing the product and improving fuel efficiency • ONE transformation program delivering real savings, partly offsetting cost headwinds 1CASK = Total cost per available seat km (ASK) in the route network Network mix & fleet renewal Contractual salary increases Industrial actions Efficiency CASK ex-fuel Q326 on fixed FX Currency impact CASK ex-fuel Q326 6.15 0.24 0.06 0.04 0.07 5.68 CASK1 ex-fuel Q325 -0.05 6.04 Other changes 0.11 +6% +8% Underlying unit cost performance remains resilient Cost pressures partially mitigated through transformation initiatives CASK Favorable Unfavorable
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12 12 Total liquidity1 Breakdown in USD million Liquidity2 development In USD million 236 398 370 175 114 88 92 92 92 236 398 370 175 114 88 92 92 92 236 398 370 175 114 88 92 92 92 236 398 370 175 114 88 92 92 92 30/09/2025 30/06/2026 30/09/2026 503 604 550 +411 +512 +458 Liquidity 31/06/2026 Net from operations Net Capex Other investing Net financing activities and exchange rate fluctuations Liquidity 30/09/2026 512 -21 -8 -5 -20 459 -53 Undrawn revolving facilities Marketable securities Cash and cash equivalents 1 Total Liquidity = Cash, cash equivalents, marketable securities, and undrawn revolving facilities. 2 Liquidity = Cash and cash equivalents and marketable securities Strong total liquidity of USD 550 million at quarter-end Up USD 48 million compared to end of the third quarter last year Period totals Favorable Unfavorable
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13 13 30 Sep 2026 31 Dec 2025 % chg. Shareholders' equity 361 286 26% Loans and borrowings non-current 124 138 -11% Lease liabilities 498 462 8% Other non-current liabilities 151 147 3% Total non-current liabilities 773 747 4% Loans and borrowings current 26 39 -32% Lease liabilities 86 78 11% Derivatives used for hedging 0 4 -100% Trade and other payables 405 319 27% Defferred income 406 391 4% Total current liabilities 924 831 11% Total liabilities 1,697 1,577 8% Total equity and liabilities 2,058 1,864 10% Equity ratio 17.5% 15.4% 30 Sep 2026 31 Dec 2025 % chg. Operating assets 539 564 -4% Right-of-use assets 528 483 9% Intangible assets and goodwill 58 58 1% Other non-current assets 181 182 -1% Total non-current assets 1,307 1,287 2% Inventories 32 28 14% Derivatives used for hedging 57 4 1346% Trade and other receivables 203 179 13% Marketable securities 88 170 -48% Cash and cash equivalents 370 195 89% Total current assets 750 577 30% Total assets 2,058 1,864 10% Shareholders equity totaling USD 361 million and an equity ratio of 17.5% Equity and liabilities USD million Assets USD million
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14 14 Business update and outlook Bogi Nils Bogason, President and CEO
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15 15 Fuel is back near peak levels, and we are acting on what we control Jet fuel price, USD per tonne Where we stand 2.3x today’s price vs. the 2025 average >2x Today‘s price vs. the average 2008-2025 Source: Bloomberg (Jet CIF NWE), Icelandair. Weekly averages of daily prices, Jan 2024 – 12 Oct 2026; peak, low and today are daily values; 2025 average = 721 USD/mt 2025 average ~720 Peak 1,838 Apr 2026 Peace talks Jun 2026 Today ~1,600 2024 2025 2026 Forward markets remain volatile, and we plan for elevated fuel costs through the winter WHAT WE ARE DOING Hedging 46% hedged below 700 USD/mt USD 28m lower Q3 fuel cost Pricing Raised fares across our markets Cost discipline Strict cost control to offset higher fuel costs Fleet and capacity Accelerated 757 and 767 phase-out, reduced capacity Fuel efficiency Transformation journey and new-generation fleet
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16 16 Navigating a challenging winter with discipline, ready for the upturn WINTER 2026/27 OUTLOOK Holding up in a tougher market More capacity into Iceland Concentrated in a few European gateways Revenue compares favorably Versus last year, despite tougher comparisons Bookings are coming in later Demand is materializing closer to departure DOING WHAT WE CAN Optimizing what we can move Much of our winter cost base is already fixed, so we act where we can: −4% Q4-26 capacity vs. original schedule −8% Q1-27 capacity vs. original schedule Accelerated 757 and 767 phase-out Non-contributing flights removed Strong liquidity of USD 550m When fuel and FX normalize, the full benefit of our structural improvements will show WHY THIS WINTER IS CHALLENGING Fuel prices remain elevated 45% of Q4-26 fuel hedged at USD 722/mt 24% of Q1-27 fuel hedged at USD 900/mt ISK remains at historically high levels +15% strengthening against the USD since Q1 2025
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17 17 Collective bargaining: working towards sustainable agreements Source: OECD Average Annual Wages. Nominal wage CAGR, 2014–2024, current prices in national currency. Nordics excl. Iceland; Euro area based on available countries LONG-TERM WAGE GROWTH FAR ABOVE COMPETING COUNTRIES 10-year average annual wage growth, 2014–2024 Iceland 7.2% US 3.8% Euro area 3.9% Nordics 2.8% OUR OBJECTIVE IS UNCHANGED Sustainable agreements that support our long- term competitiveness, operational flexibility and future growth, while providing attractive aviation jobs in Iceland STATE MEDIATOR International pilots Icelandic Airline Pilots’ Association Negotiations are being conducted through the State Conciliation and Mediation Officer DIRECT TALKS Domestic pilots Icelandic Airline Pilots’ Association Discussions are ongoing and progressing well without the involvement of the State Mediator STATE MEDIATOR Aircraft maintenance technicians Assoc. of Aircraft Maintenance Technicians Strike in late September ended with a structured work plan to conclude a renewed agreement DIRECT TALKS Cabin crew Icelandic Cabin Crew Association Discussions are progressing without the involvement of the State Mediator
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18 18 Iceland’s prosperity depends on competitive export industries WHY IT MATTERS Competitive export industries support Iceland’s prosperity Competitive export industries → Value and foreign- currency earnings → Welfare and prosperity WHAT IT TAKES Iceland and Icelandair compete internationally Taxes, charges and costs must not outpace our competitor countries Added taxation on tourism and exports must be assessed in full context Wages must follow export productivity, not run ahead of competitors Wages cannot outrun competitor countries, or what exports can bear If they do, the day of reckoning comes, which is what we are seeing now
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19 19 Financial guidance for full-year 2026 Full-year EBIT loss of USD 20–30 million1 Q4 unit revenue expected to rise 6–9%, with capacity down 3%2 Q4 unit costs ex-fuel +7–9%, partly reflecting more European flights and fewer seats per aircraft3 Q4 assumptions: jet fuel ~1,500/ USD/mt and ISK 122 per USD. Guidance remains subject to risks and uncertainties.
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20 20 SUMMER 2027 OUTLOOK Focused growth where it creates the most value Our capacity decreases slightly Transition to smaller aircraft enables more frequent services, greater customer choice and broader connectivity Two new destinations in 2027 Madrid and St. Louis, plus more Scandinavia, Southern Europe and Greenland Focus on markets to and from Iceland Continued focus on higher yielding markets Capacity goes where returns are strongest Targeted adjustments, and more if conditions change Summer 2027: selective growth and network development
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21 21 SOUTHWEST AIRLINES · STRATEGIC PARTNER SINCE 2025 Southwest’s first airline partner, now deepening our ties One ticket to 100+ Southwest destinations via six US gateways St. Louis becomes the seventh gateway from May 2027 Frequent flyer partnership from spring 2027 across both networks A GROWING PARTNER PORTFOLIO 3x Partner airlines have tripled since 2023 WestJet Our first Canadian codeshare partner, signed June 2026 AEGEAN Codeshare MoU signed June 2026, linking Greece and Iceland Partnerships remain a key strategic lever Partnership revenue grew in Q3, and we will keep expanding our reach without adding operated capacity Partnerships extend our reach without adding capacity
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22 22 SAGA PREMIUM MOMENTUM +18% Saga passengers Q3 2026 vs. Q3 2023, while Saga seats grew 9% +35% higher Saga cabin revenue in Q3 2026 vs. Q3 2023 ~84% of Saga revenue from customers originating outside Iceland or travelling via Iceland OUR PRODUCT JOURNEY SUMMER 2026 More Saga seats Added Saga seats on four MAX 9 aircraft, with strong results and higher revenue AUGUST 2026 More choice Saga Premium de- bundled: one bag and paid seat selection; Saga Premium Flex stays fully inclusive NEXT Further Saga fare options Preparing for further Saga fare options to increase customer choice AHEAD More premium across the fleet Evaluating more premium seats in the rest of the fleet Positioned in the most profitable part of the premium market Premium economy generates the most revenue per square metre on board¹ ¹ Industry evidence, e.g. Lufthansa Group Capital Markets Day: premium economy ~33% more revenue per m² than economy and ~6% more than business class Saga Premium: record demand, more choice and more premium seats
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23 23 ONE TRANSFORMATION PROGRAM USD 40m actual impact in Q3 2026 USD 138m annualized at full implementation How ONE delivers Lower structural costs Procurement, productivity and fuel efficiency lower our unit costs Stronger revenue Stronger pricing and commercial agility lift revenue Digital and AI A clear AI vision, governance and roadmap lay the foundation for company-wide adoption CONTINUOUS TRANSFORMATION Simpler processes, automation and AI lower costs, lift revenue and raise productivity Our ONE transformation journey is changing how we operate ▲ up from USD 29m in Q2 ▲ up from above USD 120m at Q2
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24 24 Key takeaways 27 01 Strong Q3 results despite the headwinds Record revenue of USD 655m and EBIT of USD 120m, up USD 46m 02 Transforming Icelandair ONE continues delivering results; ~100% new-generation fleet from 2027; The A321XLR from 2029 03 Navigating a challenging winter Persisting high fuel prices and strong ISK; union agreements to be concluded 04 Ready for the tailwind Fuel and FX at historic highs will not last, and our liquidity is strong at USD 550m We are building a stronger Icelandair: not only to handle today’s headwinds, but to make the most of the tailwind when it comes
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25 25 Thank you
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2626 • This material has been prepared by Icelandair Group hf. Unless stated otherwise all information is sourced by Icelandair Group hf. • The circulation of the information contained within this document may be restricted in some jurisdictions. It is the responsibility of the individual to comply with any such jurisdictional restrictions. • Forecasts, by their very nature, are subject to uncertainty and contingencies, many of which are outside the control of Icelandair Group. Past performance should not be viewed as a guide to future performance. Where amounts involve a foreign currency, they may be subject to fluctuations in value due to movements in exchange rates. • Icelandair Group cannot guarantee that the information contained herein is without fault or entirely accurate. The information in this material is based on sources that Icelandair Group believes to be reliable. Neither Icelandair Group nor any of its directors or employees can however warrant that all information is correct. Furthermore, information and opinions may change without notice. Icelandair Group is under no obligation to make amendments or changes to this presentation if errors are found or opinions or information change. Icelandair Group accepts no responsibility for the accuracy of its sources or information provided herein and therefore can neither Icelandair Group nor any of its directors or employees be held responsible in any way for the contents of this document. • This document must not be construed as investment advice or an offer to invest. • Icelandair Group is the owner of all works of authorship including, but not limited to, all design, test, sound recordings, images and trademarks in this material unless otherwise explicitly stated. The use of Icelandair Group´s material, works or trademarks is forbidden without written consent except where otherwise expressly stated. • Furthermore, it is prohibited to publish, copy, reproduce or distribute further the material made or gathered by Icelandair Group without the company‘s explicit written consent. Disclaimer