ICELANDAIR ANNOUNCES FALL/WINTER FLIGHT SCHEDULE

COLUMBIA, MD, July 8, 2005 – Icelandair announces that flights will continue throughout the Fall/Winter period from New York’s JFK International Airport in addition to regular service from Boston, Baltimore/Washington-BWI and Orlando. San Francisco flights will run through October 15, 2005. Seasonal projections for Icelandair’s Minneapolis/St. Paul operations deemed it necessary to suspend MSP service from January 10-March 12, 2006.

Icelandair currently offers nonstop service from its US gateways to the airline’s hub in Reykjavik, Iceland, continuing to 16 destinations in Scandinavia, Great Britain and Continental Europe.

Additional information is available at www.icelandair.com or (800) 223-5500.