This Annual and Sustainability report includes the Consolidated Financial Statements of Icelandair Group hf. that has been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU. The report also meets Icelandic disclosure requirements. It covers the activities of Icelandair Group for the financial year 1 January to 31 December 2023. The report is intended to provide a holistic view of the Company’s operations and the material sustainability matters relating to environmental and social impacts, as well as governance (ESG). The sustainability information set forth is presented in accordance with Nasdaq's ESG Reporting Guide 2.0 and an ESG data table is included.

The new Corporate Sustainability Reporting Directive (CSRD) expands the scope of non-financial reporting with new disclosure requirements where companies shall report on their environmental and social impact activities. The CSRD introduces binding reporting standards, the European Sustainability Reporting Standards (ESRS), and directions on alignment with the EU Taxonomy Regulation. Icelandair have started preparatory work in 2023 for these upcoming regulatory changes. For the financial year 2023, Icelandair reports on turnover, capital expenditures and operating expenditures related to determined business activities. Four SDGs, have in recent years represented the Company’s key sustainability focus areas. This year they will be aligned with the work preparing for the upcoming EU reporting legislation.

Icelandair Group hf. (the "Company" or „Icelandair“) is a public limited liability company incorporated and domiciled in Iceland. Icelandair Group hf. is listed on the Icelandic Stock Exchange (Nasdaq Iceland), and is the holding company, under the ticker symbol ICEAIR - www.nasdaqomxnordic.com. More information is available on the Group's website https://www.icelandairgroup.com

We welcome any comments, suggestions or questions you may have regarding this report. Please send an email to ir@icelandair.is.