Strategic actions

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Integration of domestic and international flight operations

The integration of Icelandair and its domestic airline, Air Iceland Connect, was completed in the first quarter of the year with the objective of simplifying and streamlining the Group’s operations. The first domestic flight under the Icelandair brand took place on 16 March 2021.

The aim of the companies' integration was to ensure the sustainable future of Icelandair's domestic flight service as well as flights in the West Nordic market areas, and at the same time strengthen and simplify the Company's operations as a whole. With one strong brand, a simplified booking process, and integrated distribution channels, Icelandair is able to offer a comprehensive range of products and services to all the Company's destinations, domestic and international, in one place, improving its service offering and customer experience.

Domestic destinations in Iceland are now more visible on Icelandair's website through one search, one ticket, and a connection to the route network in Europe and North America. The connection to the Icelandair brand will elevate domestic destinations internationally as the Icelandair brand is well known in the Company's key markets after decades of development and investment in sales and marketing.

Customer focus is in our DNA and our goal is to be the most customer-focused airline in our markets. In our outside-in approach, we emphasize understanding our customers’ needs and we put our customers first in all our decisions and actions. With a strong culture of customer focus, our employees go out of their way to find solutions that cater to our customers’ needs and the goal is to have our customers travel with us again.

Guðný Halla Hauksdóttir

Customer Experience Development & Innovation

Divestment of Travel services

In February 2021, Icelandair Group reached an agreement with Berjaya regarding the sale of its remaining 25% share in Icelandair Hotels, but Icelandair Group had sold 75% share the year before. Following the transaction, Icelandair Hotels will work on rebranding its hotels and eventually cease the usage of the Icelandair trademark. The sale of the remaining shares in Icelandair Hotels was in line with the Company’s strategy of focusing on its core business, aviation, and related services, going forward.

In June 2021, Icelandair Group signed a share purchase agreement with Nordic Visitor regarding the sale of a 100% stake in Iceland Travel. The sale was subject to general conditions such as approval from the Icelandic Competition Authorities. The sale was approved in October and finalized in December. Iceland Travel has been a leading travel company, tour operator, and destination management company in Iceland tracing its roots to 1937. Iceland Travel provides services to agents and other businesses (B2B) and its service offering spans a wide range of high-quality services for travelers from all over the world, offering a full range of guided tours, day tours, and road trips.

The sale was a part of Icelandair Group’s divestment of tourism operations and increased focus on aviation and related services.

Refreshed corporate branding

Our vision is to bring the spirit of Iceland to the world and our corporate strategy revolves around Iceland, our hub and home. In 2021 we updated our brand to better reflect our strategy and our digitally driven culture. We are inspired by Icelandic nature and our new colors represent the various shades of Iceland, with midnight blue and white as primary colors, and northern lights blue, pink, sky blue, yellow, and green as secondary colors. We are excited to continue bringing the ever-changing and colorful spirit of Iceland to the world, sharing that the Icelandic spirit is a state of mind available to everyone, no matter where they come from.