ICELANDAIR ANNOUNCES FALL/WINTER U.S. SCHEDULE

COLUMBIA, MD, August 18 - Icelandair’s non-stop service from the USA to Reykjavik, Iceland with connections to destinations in Scandinavia, Great Britain and Continental Europe will remain at 7 weekly flights from Boston (1 daily); 5 flights from New York-JFK (Monday, Wednesday, Thursday, Friday, Sunday) through January 4, 2007, thereafter 4 flights weekly (Monday, Thursday, Friday, Sunday); 3 flights from Orlando-Sanford (Tuesday, Wednesday, Saturday). Service will be suspended beginning 9 January, resuming 8 March from Baltimore/Washington-BWI with 4 flights (Monday, Wednesday, Thursday, Sunday) and beginning 10 January, resuming 15 March with 4 flights (Tuesday, Thursday, Friday, Saturday)from Minneapolis/St. Paul.

“Icelandair’s success on the transatlantic route from the United States since 1948 has been due to our ability to quickly and easily adapt to fluctuations in the market,” said Gunnar Eklund, General Manager-The Americas. “Our hub-and-spoke route network,” he added, “in addition to the relatively small size of our company, provide immediate flexibility to change as required.”

Eklund cites projected reduced yields and load factors on transatlantic routes in the coming low season for the decreased flight schedules for BWI and MSP in late winter.

“We regret this temporary inconvenience to our customers and appreciate their continued loyalty,” Eklund added, “as we strive to further strengthen our route network, enabling us to reinstate year-round service as soon as possible.”

Icelandair’s operations include evening departures from the US timed for early morning arrivals in Iceland with immediate connections (within 90 minutes) to the rest of Europe. Icelandair flights returning from Europe connect to late afternoon flights to the US.

Icelandair reservations and information are available at (800) 223-5500 and on-line at www.icelandair.com. Icelandair headquarters for The Americas have been located in Columbia, Maryland, since 1994.

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