Icelandair Group hf.

Icelandair Group has entered into an agreement with Titan Aircraft Investments, the joint venture between Titan Aviation Holdings and Bain Capital Credit, regarding the sale and leaseback of two Boeing 767-300ER aircraft that will be converted into freighters. Titan Aviation Holdings, a subsidiary of Atlas Air Worldwide Holdings Inc. (NASDAQ: AAWW) will manage these assets. The lease period for each aircraft is 10 years. The agreement will have a positive impact on Icelandair Group’s liquidity.

The conversion is estimated to take place in spring of 2022 and the aircraft will become part of Icelandair Cargo’s fleet in September 2022. Until then, the aircraft will be operated within Icelandair Group’s passenger network and leasing operations. The aircraft will replace the Company’s current two B757-200 freighters that it expects to take out of operation in 2023 and 2024.

Icelandair Group will continue to focus its cargo operations on utilizing belly capacity within its passenger network as well as its own cargo aircraft fleet.

Bogi Nils Bogason, President and CEO, Icelandair Group:

"We are very pleased to partner with Titan Aviation and Atlas Air to further strengthen our cargo business. With continued positive outlook for cargo operations post COVID, I am confident that the 767-300ER freighters will allow us to maximize new opportunities in our markets. These aircraft carry around 50% more freight than our current two B757-200 freighters and fit very well into our current fleet and network. Our aim is to increase the capacity in our markets, as well as strengthen Iceland as a hub for cargo between continents in a similar way as our passenger hub that provides attractive connections between continents."

Michael T. Steen, President and CEO of Titan Aviation Holdings:

"We are delighted to welcome Icelandair as a strategic customer and to support their long-term expansion plans. The 767-300ER is a very attractive medium-sized freighter and we are excited to manage these two aircraft on behalf of the joint venture.  We currently own 21 767-300ER freighters, which provide us with extensive experience in this aircraft fleet."

Contact information:
Investors: Iris Hulda Thorisdottir, Director Investor Relations
E-mail: iris@icelandairgroup.is
Media: Asdis Petursdottir, Director Communications & CSR
E-mail: asdis@icelandair.is

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