Icelandair has made changes to its flight schedule until the end of October 2019 as it is expected that the suspension of Boeing 737 MAX aircraft will last longer than anticipated.

To minimize the impact on its passengers, Icelandair has been operating five leased aircraft during the summer season. The leasing agreements of two of the aircraft will expire at the end of August while the other three will be in operation until the end of September. Icelandair is currently working on extending the leasing agreement of one aircraft until the end of October.

With these changes, the total seat capacity from 16 September to 26 October will decrease by 4% from what the Company had estimated. With its current emphasis on increasing the number of passengers to and from Iceland, Icelandair has transported record number of passengers to Iceland so far this summer, or 354 thousand passengers in May and June compared to 257 thousand in the same months last year. In addition, the number of bookings by passengers traveling to Iceland from July to October has increased by over 20% compared to the same period last year.

Icelandair will start implementing these changes in the next few days and Icelandair's service representatives will contact the passengers affected.

The financial impact of the suspension of the Boeing 737 MAX aircraft is still uncertain as, among other things, the amount of compensation from the aircraft manufacturer is still under review.