Junkers Ju 88 D-5, A6+EH 1726.Junkers JU 88 in flight

The Incident:

German reconnaissance plane was reported over Hvalfjörður and found by Lt. J.D. Shaffer, flying a P39 Airacobra.
(Some sources say that the battle started over Þinvallavatni and the German plane was chased to Hvalfjördur)

The P39 started firing at the Ju 88, and the German plane returned fire.
The fighter chased the German plane towards the bottom of the fjord and was about to disappear into a dark cloud when the P39s propeller hit and damaged the tail section of the German plane. The German plane flew low into Svínaskarð and crashed into a narrow ravine, Jökulgil. 
Sources say that the plane was found 15 days later and the 3 crew members were killed in the crash.

The Crew:

Lt. Harald Osthus(F )KIA †
Lt. Josef Ulsamar (B) KIA †
Fw. Franz Kirchmann (Bf) KIA †
All crew members killed.

The Aircraft:

Junkers Ju 88 D-5,
S/N: 1726
Aircraft reg.: A6+EH
Squadron/Unit: 1.(F) AGr. 120.

Details on aircraft: WikipediaYoutube

The crash site was visited by stridsminjar.is on July 18, 2011
Colour photos by ÓM, black and whites: Fold3.com, John Penny