Icelandair is theflag carrier ofIceland.^[4] It is part of theIcelandair Group and operates to destinations on both sides of the Atlantic Ocean from its mainhub atKeflavík International Airport. Its smaller domestic-only hub is located atReykjavík Airport.^[5] The geographical position of Iceland is convenient for one-stoptransatlantic flights via theAtlantic Bridge route, which is one pillar of the airline's business strategy, along with traffic to, from, and within the country.^[6] Their headquarters are located inHafnarfjörður.^[7]

Icelandair

IATA ICAO Call sign FI ICE ICEAIR
Founded	3 June 1937; 87 years ago (1937-06-03)
AOC #	IS-001
Hubs	Keflavík International Airport
Focus cities	Reykjavík Airport
Frequent-flyer program	Saga Club
Fleet size	42
Destinations	60[1]
Parent company	Icelandair Group
Headquarters	Hafnarfjörður, Iceland
Key people	Bogi Nils Bogason (CEO)[2]
Revenue	$1.524 billion (2023)[3]
Net income	$11 million (2023)[3]
Employees	3,638 (2023)[3]
Website	www.icelandair.com

Icelandair traces its roots back to 1937, whenFlugfélag Akureyrar was founded inAkureyri on the north coast of Iceland. Flight operations started in 1938 with a singleWaco YKS-7 configured as afloatplane. In 1939 the airline was grounded when this aircraft was destroyed in a capsizing accident. In March 1940, Flugfélag Akureyrar moved its hub to Reykjavík and moved its operations to fixed-wingseaplane scheduled flights from the Vatnsmýri area, and changed its name to Flugfélag Íslands,^[8] where it acquired another Waco aircraft and was relaunched in 1940 asFlugfélag Íslands, which translates asFlight Company of Iceland.^[9] Seaplane flights were operated in the vicinity of Vatnsmýri inSkerjafjörður and Vatnagarðar.^[10] Previously, the two unrelated airlines of the same name (Flugfélag Íslands) had existed in the country (from 1919 to 1920, and between 1928 and 1931).^[11] For international purposes, the nameIceland Airways was adopted.^[12]

In 1940, Iceland wasinvaded by the British andReykjavík Airport was established south of the capital during the war. In in 1946 the airport was handed over to Icelandic civilian authorities, now calledIsavia.^[13] Iceland Airways (Icelandair) inherited a small building constructed by the British Army on the west side of the airport. Since 1947, the building has been gradually expanded but is still in use by Icelandair as a domestic terminal in 2024. By the 1950s, Iceland Airways operated flights to Britain and Northern Europe from the airport, as well as domestic flights.^[13]

The airline was based fromReykjavík Airport, close to the city centre, and the fleet was expanded with aBeechcraft Model 18 in 1942; and with twoDe Havilland Dragon Rapides^[14] and aConsolidated PBY Catalina in 1944, the latter being the first ever aircraft registered in Iceland to be flown to Iceland by an Icelandic crew from North America.^[15] On 11 July 1945, this aircraft operated the first commercial flight over the Atlantic Ocean for the airline, which led from Reykjavík toLargs in Scotland, with four passengers and four crew members on board. Regular flights toPrestwick Airport in Scotland and Copenhagen in Denmark, usingConsolidated B-24 Liberator aircraft leased fromScottish Airlines were launched in 1946.^[11]

In the same year, the comfort and performance of domestic flights in Iceland was improved with the introduction of theDouglas DC-3. A total of six were purchased, which remained in service with the airline until 1972.^[16] Until the late 1960s, Flugfélag concentrated mostly on domestic service, but it also continued operating internationally; in 1948, theDouglas DC-4 was introduced on international routes, and in 1957 two newVickers 759 Viscounts were acquired, the firstturboprop airliners to be operated by an Icelandic airline. In the 1950s, Flugfélag began to useIcelandair branding for flights beyond Iceland.^[12]

In 1967, Flugfélag was the first Icelandic airline to join thejet age, when aBoeing 727-100 dubbedGullfaxi was put into service. The B-727 jet aircraft was operated fromKeflavík Airport, as the aircraft was considered too large for the smallerReykjavík Airport. Most of Flugfélag's international operations transferred to Keflavík by this time. This left only shorter-distance flights toGreenland and theFaroes as the only international services from Reykjavík Airport.^[17] Another 727 was acquired in 1971, and the aircraft type was operated until 1990.^[18] In 2008, the cockpit section ofGullfaxi was put on display at theAkureyri Aviation Museum.^[19]

Another company, Loftleiðir, called Icelandic Airlines internationally, was formed in 1944 by three young pilots returning from their flight training in Canada. The company, whose name roughly means "Skyways", initially concentrated on Icelandic domestic routes using twoStinson Reliants and then aGrumman G-21 Goose^[20]amphibious aircraft.

Loftleiðir began scheduled international operations in 1947 from a small shed on the east apron ofReykjavík Airport.^[21] Loftleiðir soon began challenging Flugfélag's dominance within Iceland; by 1952, the Icelandic authorities became concerned that the fierce domestic rivalry would cripple both companies, and attempted to force them to merge.^[22] Unable to consummate a merger, the authorities instead divided domestic routes between the two airlines, prompting Loftleiðir to exit the domestic market and concentrate instead on international flights.^[22][23] Its pioneering low-fare service across the North Atlantic commenced in 1953.^[24] Loftleiðir is considered a precursor to thelow-cost carriers, that emerged worldwide in the 1970s, as it was not part of or subject toIATA fares or rules.^[25][26][27] Loftleiðir, anticipating increased demand, began construction of a large passenger terminal atReykjavík Airport.^[28]

The late 1960s were an exciting time for Loftleiðir.^[29] In 1964, the airline acquiredCanadair CL-44 aircraft, which were the largesttransatlantic aircraft operating at the time.^[30] As a result of the large size of the new aircraft, Loftleiðir moved its entire operation toKeflavík Airport in the same year, abandoningReykjavík Airport completely.^[31] The planned passenger terminal at Reykjavik Airport later became a hotel and headquarters for Loftleiðir. It continued to house the headquarters of Icelandair until 2024. The Loftleiðir hotel was operated under the Icelandair brand until 2022.^[32]

In 1969 the company acquired International Air Bahama, a small Bahamian airline that operated transatlantic nonstop service betweenNassau and Luxembourg usingDouglas DC-8 jetliners,^[33] and a year later, Loftleiðir became one of the founders ofCargolux, a cargo airline. Also in 1970, Loftleiðir entered the jet age with its first two DC-8 aircraft.^[34]

During those years, many people including the company's own staff called Loftleiðir "theHippie Airline" or "the Hippie Express".^[35] The airline was not known for speed or punctuality, but flying with the company became a sort of rite of passage for young "hippies" from America travelling to Europe, one of whom was future U.S. presidentBill Clinton.^[36][37]

During the1970s energy crisis, the economic situation for both Flugfélag Íslands and Loftleiðir worsened. The government of Iceland initiated a new attempt to merge the two airlines, which could be realized in 1973 following lengthy and difficult negotiations.^[38] In 1975, the Icelandic government provided a $13.5 million loan to Flugleiðir.^[39] The staff of Loftleiðir complained that Flugfélag Íslands, although smaller, had gained the upper hand in the united company.^[40] A holding company calledFlugleiðir was created, which combined the two companies and began to streamline staff and operations.^[41] At the time of the merger, two-thirds of the passenger traffic of the airline were international transatlantic crossings, and Flugfélag Íslands's fleet of Douglas DC-3s and Boeing 727s were enlarged by theDouglas DC-8s of Loftleiðir. In 1979, the two airlines Flugfélag Íslands and Loftleiðir merged into one airline Flugleiðir, and the airline was renamedIcelandair.

In 1980, the Icelandic government provided a loan to Icelandair due to the company's bad financial situation.^[39]

The aircraft fleet of Icelandair remained mainly unchanged until theBoeing 757-200 became the new backbone for transatlantic flights during the 1990s. The domestic Fokker F27s were replaced byFokker 50s and Boeing 737s deployed on European routes. The European hub atLuxembourg Airport had been taken over from Loftleiðir. Passenger count topped one million in 1997^[42] as the company's business grew on a reputation as a "backpacker airline", similar to Loftleiðir, which had been referred to as "Hippie Airline" since the late 1960s. In the same year, it was begun to dismantle the Luxembourg hub in favour of today's decentralized European network, linking the largest cities non-stop to Reykjavík,^[43] closing it down altogether by 1999.^[44]

In 1997 the domestic operations of Icelandair, part of which had previously been operated under the 'Flugfélag Nordurlands' branding, were combined with a small airline Nordurflug to form theAir Iceland (Icelandic:Flugfélag Íslands) subsidiary,^[45] allowing mainline Icelandair to fully concentrate on international flights since then. On 20 November 1999, a new aircraft livery was introduced, as part of an image campaign designed to retire Icelandair's "backpacker" label in favour of an emphasis on business travel. In 2001, the Icelandair hub was moved toKeflavík International Airport. As Icelandair particularly focuses on flights to North America, the company was significantly affected by theairspace closure following theSeptember 11 attacks in the same year.

The Flugleiðir holding was reorganized asIcelandair Group (for aviation business) andFL Group (for non-aviation finance and investment business) between 2002 and 2005, with Icelandair becoming the largest and most important of eleven subsidiaries. Thewet-lease and charter department, which was founded in 2003, was namedLoftleiðir Icelandic, thus re-introducing a familiar name.^[46]

Icelandair was hit by the2008 financial crisis in the country and was further impacted by a volcanic eruption in 2010.^[47] Air traffic restrictions following the2010 eruptions of Eyjafjallajökull resulted in large parts of the European airspacebeing closed down. The air travel disruption coincided with the start of the important summer season for the company. The in-house crisis management organisation began assessing the situation once the scale of the problem had become known.^[48] Thrice-daily crisis meetings were held at the airline's headquarters. Icelandair tried to operate as many passenger flights as possible, keeping its hub atKeflavík open and diverting European flights to airports that were still open. The eventual closure of Keflavík due to thevolcanic ash cloud coincided with an improvement of the situation towards Europe, which allowed Icelandair to move its headquarters with 200 staff to Glasgow and operate flights from there for ten days,^[49][50] with shuttle flights to Iceland'sAkureyri Airport and round-the-clock bus shuttles onwards to Reykjavík.

In theaftermath of the eruption, the government of Iceland launched the successful^[51][52][53] "Inspired by Iceland" campaign to regain confidence in travelling to Iceland for tourists and business people,^[54] of which Icelandair was a leading participant and initiator.^[49]

When theGrímsvötn volcano erupted in 2011, Icelandair once again had to cope with airspace closures in Europe. However, this time to a lesser extent due to a higher level of political preparedness.^[55][56] Weekly newspaperThe Economist claimed that Icelandair could even take advantage when catering fordisaster tourists.^[57]

In February 2011 Icelandair was chosen "The Knowledge Company" of the year and IcelandairCEOBirkir Hólm Guðnason was picked as "Man of the Year" in the Icelandic business community.^[58] In both categories the panel of judges of the Association of Economists and Business Graduates in Iceland said that "the fine results of the company in the previous year showed both a high degree of skill and specialist knowledge within the company as well as excellent leadership."^[58] In October of the same year, the airline was awarded the title "Marketing Firm of the Year in Iceland", by a judging panel from IMARK, the Marketing Association in Iceland.^[59]

Icelandair moved its headquarters to Hafnarfjörður in 2024, to consolidate its offices under one roof. Their previous headquarters atReykjavík Airport were in use for over 50 years, having been built byLoftleiðir.^[7]

After having launched scheduled flights to Washington, D.C., in 2011,^[60]Denver was announced as a new U.S. destination for 2012, followed by Anchorage in 2013, bringing the total number of cities served in the country up to eight, along with Boston, Minneapolis, New York City, Orlando and Seattle.^[61] Also in 2012, Icelandair introduced flights linkingAkureyri to its Keflavík hub through subsidiary companyAir Iceland.^[62]

From 2009 to 2014, operations doubled. Twice-weekly flights to Vancouver commenced on 13 May 2014 and continued until October of that year. Flights to Edmonton started on 4 March 2014, with a year-round service operating five times a week. The Geneva service started on 24 May 2014 and continued twice weekly until September.^[63]

On 9 December 2014, Icelandair revealed a northern lights-themed Boeing 757-200 (registration TF-FIU) namedHekla Aurora.^[64] The exterior features artwork depicting an Icelandic winter scene and LED mood lighting emulating theAurora Borealis.^[65]

On 5 February 2015,Birmingham became Icelandair's 5th gateway in the UK, and the 39th overall, with flights operating twice weekly, on Thursdays and Mondays.^[66] On 19 May 2015, Icelandair launched scheduled flights to and from Portland, Oregon in the US: its 14th destination in North America. Flights were set to operate twice weekly, on Tuesdays and Thursdays, until 20 October.^[67] Further expansion of Icelandair's global network was announced on 12 May 2015 with new, year-round services from Chicago O’Hare International Airport. Services commenced on 16 March 2016, with flights to Iceland operating four days a week.^[68] On 17 August 2015 Icelandair announced the augmentation of its global flight network with a new service between Keflavik and Aberdeen, the company's second Scottish destination. The new service, operated byAir Iceland Connect (a subsidiary of Icelandair Group), commenced in March of the following year, with flights scheduled four times per week.^[69]

Icelandair commenced scheduled flights toParis Orly Airport beginning on 29 March 2016.^[70] Services toMontréal–Trudeau Airport began on 26 May 2016.^[71] In September 2016, Icelandair announced services toPhiladelphia, US, starting in May 2017 andTampa, US starting in Sep 2017.^[72]

In May 2017, Icelandair unveiled a glacier-themed special livery on Boeing 757-200 (registration TF-FIR) named Vatnajökull, the name of Europe's largest glacier. The special livery was created to commemorate Icelandair's 80th anniversary.^[73][74] In August 2017, Icelandair announced service five days per week toCleveland, US, which began on 16 May 2018.^[75] The route was cut in early 2019.^[76]

Since the 1960s, Icelandair has offered passengers travelling on transatlantic flights between North America and Europe an opportunity tostopover in Iceland for up to seven days, at no additional cost.^[77]

On 9 January 2018, Icelandair announced that it would provide three non-stop flights a week from Kansas City International Airport to Keflavík International Airport, which commenced on 25 May 2018.^[78] Icelandair commenced four weekly flights to and from Dallas Ft. Worth on 30 May 2018. It ended on 6 March 2019.^[79][80]

On 5 November 2018, Icelandair announced plans to take over its low-cost competitor,WOW Air, with the two airlines to be operated as separate brands.^[81] On 29 November, Icelandair abandoned this endeavour as the shareholders’ meeting pre-conditions were unlikely to be met.^[82]

On 18 September 2020, the company's share capital was increased with the issue of 23,000,000,000 new shares with a nominal value of 1Icelandic króna following a public share offering.^[83] In addition, the Icelandic government decided to guarantee a line of credit for Icelandair. The guarantee amounts to $120 million.^[84]

On 16 March 2021, domestic flights operated byAir Iceland Connect (a wholly owned subsidiary of theIcelandair Group) merged under Icelandair branding while retaining its existingair operator's certificate.^[85][86]

Icelandair announced the launch of a new route toIstanbul, operating four times a week beginning September 5, 2025.^[87] In January 2025, Icelandair was reported to be launching a non-stop flight betweenReykjavik andMiami with three weekly flights starting in January 2026. The route will be serviced by itsAirbus A321LR aircraft.^[88]

Icelandair offers three booking classes: Economy Light, Economy, and Saga Class (the last being almost equivalent toBusiness class but without lie-flat beds). Free meals are only available in Saga Class, and abuy on board service is provided for the Economy classes.^[89] The airline offered Economy Comfort until April 2018.^[90]

All of Icelandair's aircraft are equipped with a free-of-chargeVODin-flight entertainment system that includes seatback, and touch-screen monitors for each passenger.^[91] On 1 April 2013 Icelandic bandSigur Rós debuted its latest album,Valtari, exclusively onboard Icelandair's aircraft, two months before the album's general release.Biophilia,Björk's 2011 album, had earlier been released on Icelandair's fleet in the same way.^[92] All of Icelandair's fleet is equipped with in-flight Wi-Fi.^[93][94]

Icelandair'sfrequent-flyer programme is Saga Club, a programme where members can earn Saga points for travelling on Icelandair or partner airlines, and redeem points toward travel or Saga Shop inflight purchases.^[95] As of January 2021, Alaska Airlines and JetBlue are the only partner airlines of Icelandair eligible to earn Saga points through Saga Club,^[96] while Alaska Airlines is the only partner airline that allows for redeeming points towards travel.^[97]

Icelandair Info, theinflight magazine of Icelandair, is printed four times a year in Icelandic and English. First published in 2008, it is also the product catalogue for the airline's Saga Shop.

Icelandair flies between Iceland and several destinations across Europe and North America. A few of these destinations are seasonal.

Icelandaircodeshares with the following airlines:^[98]

Icelandair hasinterline agreements with over 70 airlines^[102], includingPorter Airlines^[103]Southwest Airlines^[104] andSun Country Airlines.^[105]

As of January 2025^[update], Icelandair operates the following aircraft, and most of the aircraft in Icelandair's fleet are named afterIcelandic volcanoes.^[106]

In 2005, the airline, on behalf of its parent company Icelandair Group, announced an order for tenBoeing 737-800 aircraft with options for five more.^[114] Those options were later exercised.^[115] These were not placed into service by the airline but leased to other airlines.^[116] During that same year, Icelandair announced an order for twoBoeing 787 Dreamliners.^[117] In 2006, Icelandair announced an order for two more Boeing 787s.^[118][119] In 2011, it was announced that orders for three of the 787s had been cancelled.^[120]

On 13 February 2013, Icelandair Group announced that the company had finalized an order with Boeing for 16 newBoeing 737 MAX aircraft.^[121] Purchase rights for eight additional 737s were also signed. The value for all 16 aircraft was US$1.6 billion at Boeing list prices, but the actual purchase price was confidential. The aircraft were scheduled to be delivered in 2018–2021. The order was for nine 737 MAX 8s configured for 153 passengers, and seven 737 MAX 9s to hold 172 passengers. Icelandair Group's current Boeing 757-200 aircraft hold 183 passengers.^[122]

On 8 May 2019, Icelandair announced that the company was considering ordering theAirbus A321neo andAirbus A321LR as a replacement for their ageing fleet of Boeing 757s, or to run alongside theirBoeing 737 MAX 8 or to even replace the MAX 8s entirely, due to theBoeing 737 MAX groundings.

On 22 January 2020 Icelandair announced that the airline would lease threeBoeing 737-800 airliners to enter service in spring 2020.^[123] The aircraft were to bedry leased and flown by Icelandair pilots.^{[citation needed]} However this never took place.

On 12 August 2020, Icelandair reached a settlement withBoeing over the MAX groundings. The settlement included reducing the carrier's order for future MAX aircraft by four.^[124]

On 7 April 2023, Icelandair announced that the airline had signed anMOU for an order of up to 25A321XLRs: 13 firm orders with 12 further options. At the same time, it was also announced that negotiations were underway to lease fourA321LRs. These will replace its ageingBoeing 757 fleet.^[125] This will be the first-ever Airbus order for the Icelandic flag carrier. The first Airbus A321LR was delivered on 2 December 2024.^[109]

In December 2024, Icelandair's two Boeing 757-300 aircraft were wet-leased to Fly Khiva ofUzbekistan.^[112]

As of November 2024, Icelandair operates two aircraft with special liveries. These depict the natural beauty ofIceland. One showcases the largestglacier in Europe, Vatnajökull, as well as celebrates the independence ofIceland for 100 years. The other highlights theAurora Borealis (Northern Lights), also part of Icelandair's #IcelandStopover campaign.

A third aircraft (Boeing B757-300 TF-ISX "Þingvellir") was painted in the red, white, and blue livery of Iceland's flag and celebrated both the 100th anniversary of Icelandic National Sovereignty (1918–2018) and the National Men's Football Team's World Cup debut in 2018. This aircraft was retired from the Icelandair fleet in October 2024.

Over the years, Icelandair operated the following aircraft types:^{[128][129][130][131]}

Icelandair Cargo is a sister airline to Icelandair; it is Icelandair Group's cargo airline subsidiary. Flugfélag Íslands and Loftleiðir used their aircraft to carry freight as well as passengers, and when Icelandair was established in 1973 a freight division was set up within the airline. After years of operating freighter aircraft as part of Icelandair, Icelandair Cargo was established as a separate entity in 2000. The airline uses available space in the baggage compartments of Icelandair's passenger aircraft, as well as operating two Boeing 757 freighters to destinations in Europe and North America from its base at Keflavík International Airport.^[132]

In 2021, Icelandair Cargo announcedBoeing 767-300ER passenger aircraft would be converted to freighters.^[133] The first converted 767-300BCF was delivered to Icelandair on 8 December 2022 with plans to use the increased capacity to establish new routes to theUnited States.^[134]

As of April 2024^[update], the Icelandair Cargo fleet consists of the following aircraft:^[135][136]

Icelandair and the City of Reykjavík are two of the main sponsors of theIceland Airwaves, an annual music festival held in Reykjavík on the first weekend in November.^[138]

29 May 1947

A Flugfélag Islands Douglas DC-3 (registered as TF-ISI)crashed near Héðinsfjörður during a scheduled domestic flight from Reykjavík to Akureyri, killing the 21 passengers and four crew members on board. To date, this remains the worst aviation accident in Iceland.^[139]

7 March 1948

AnAvro Anson Mk5 belonging to Loftleiðir crashed on the mountain Skálafell en route from the Westmann Islands (Vestmannaeyjar) to Reykjavík, killing the pilot and the five passengers on board.^[140]

31 January 1951

The 17 passengers and three crew members on board a DC-3, registered TF-ISG and named Glitfaxi, were killed when the aircraft crashed in the sea off the Icelandic coast nearHafnarfjörður in what became known as theGlitfaxi air crash. The pilots were attempting to land the aircraft at Reykjavík Airport in heavy snowfalls following a flight fromVestmannaeyjar when radar contact was lost.^[141]

14 April 1963

AVickers Viscount (registered TF-ISU) crashed on approach toOslo-Fornebu Airport. All 12 people on board were killed.^[142]

26 September 1970

A FlugfélagFokker F27 Friendship (registered TF-FIL) crashed into a mountain nearVágar, Faroe Islands while approachingVágar Airport following a scheduled passenger flight fromBergen, in what is known ascontrolled flight into terrain. Of the 34 people on board, seven passengers and one crew member were killed.^[143]

15 November 1978

Loftleiðir Flight 001, a Douglas DC-8 (registered TF-FLA), operating forGaruda Indonesia, missed the runway upon approach ofColombo Airport inSri Lanka during a charteredHajj pilgrimage flight fromJeddah and crashed. 181 passengers died in the accident, while 74 passengers and 5 crew members survived.^[144][145]

22 January 2002

The crew of Icelandair Flight 315, aBoeing 757-200 registered TF-FIO with 75 passengers on board, unintentionally entered a series of extreme manoeuvres during ago-around from a low altitude following an unstabilisedapproach intoOslo Airport, Gardermoen. During the incident the aircraft was subjected toload factors over the design limits, culminating in a dive followed by a +3.59g pull-up manoeuvre clearing the ground by only 321 ft. The speed limit for theflap configuration was also exceeded. Control was regained and a second approach was flown with the aircraft landing safely. The airliner was permitted to proceed on its subsequent scheduled flights without a technical inspection being conducted until 13 March of that year when its manufacturerBoeing recommended further maintenance work after having evaluated the readings from theflight data recorder. TheAccident Investigation Board Norway, which led the investigation into the incident, made four safety recommendations, including one to the wider aviation community on operational procedures regarding discontinued approaches.^[146]

7 February 2020

Icelandair Flight 529, aBoeing 757-200 registered TF-FIA, suffered a right-hand main landing gear collapse after landing on runway 10 at Keflavík International Airport, Iceland. There were no injuries among the 166 people on board.^[147]

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