View source for Icelandair

{{Short description|Flag carrier of Iceland; based in Reykjavík}}
{{Use dmy dates|date=March 2021}}
{{Infobox airline
| airline = Icelandair
| logo = Icelandairlogo.svg
| logo_size = 250
| IATA = FI
| ICAO = ICE
| callsign = ICEAIR
| parent = [[Icelandair Group]]
| founded = {{start date and age|df=y|1937|6|3}}
| commenced = 
| headquarters = [[Hafnarfjörður]], Iceland
| key_people = {{nowrap|Bogi Nils Bogason (CEO)<ref>{{cite web|url=https://www.icelandair.com/about/management/ |title=Icelandair Management |website=icelandair.com |access-date=5 December 2018}}</ref>}}
| revenue = {{increase}} [[Dollar|$]]1.524&nbsp;billion (2023)<ref name="Icelandair 2023 Annual Report">{{cite web|url=https://annualreport2023.icelandairgroup.is/ |title= 2023 Annual Report |publisher=Icelandair Group |accessdate=18 March 2024}}</ref>
| operating_income = 
| net_income = {{increase}} [[Dollar|$]]11&nbsp;million (2023)<ref name="Icelandair 2023 Annual Report"/>
| hubs = {{nowrap|[[Keflavík International Airport]]}}
| focus_cities = [[Reykjavík Airport]]
| frequent_flyer = Saga Club
| alliance = 
| destinations = [[List of Icelandair destinations|60]]<ref>{{Cite web|url=https://www.ch-aviation.com/portal/airline/FI | title=Icelandair on ch-aviation.com | website=ch-aviation.com | access-date= 21 November 2023}}</ref>
| fleet_size = 47
| website = {{Official URL}}
| image = Airbus A321-271NX (c-n 12359, TF-IAB) 2025-06-20 Andre Gerwing Collection ID 024045.jpg
| caption = Icelandair [[Airbus A321LR]]
| image_size = 250
| aoc = IS-001
| num_employees = 3,638 (2023)<ref name="Icelandair 2023 Annual Report"/>
}}

'''Icelandair''' is the [[flag carrier]] of [[Iceland]].<ref name=icelandairgroup>
{{cite web|url=https://www.icelandair.com/|title=Home|publisher=Icelandair|accessdate=2022-10-21|quote=Icelandair – Reykjavik Airport – 102 Reykjavik}}<br>
{{cite web
 | title= Condensed Consolidated Interim Financial Statements
 | publisher= Icelandair Group
 | url= https://assets.contentstack.io/v3/assets/blt7c94950eb7f3edcb/bltda73356ce551a410/635179571628061cddf50aa0/Icelandair_Group_hf_30.09.2022.pdf
 | access-date= 2022-10-21 |quote=Icelandair Group hf. • Reykjavíkurflugvöllur • 102 Reykjavík, Iceland • Reg. No. 631205-1780
}} – [https://www.icelandairgroup.com/investors Linked from here]
</ref> It is part of the [[Icelandair Group]] and operates to destinations on both sides of the Atlantic Ocean from its main [[airline hub|hub]] at [[Keflavík International Airport]]. Its smaller domestic-only hub is located at [[Reykjavík Airport]].<ref name=BI>{{cite web|url=http://markets.businessinsider.com/news/stocks/icelandair-celebrates-the-addition-of-its-new-boeing-737-max-and-inspires-passengers-to-capture-stunning-aerial-shots-from-22-000-feet-1021446115|title=Icelandair Celebrates the Addition of Its New Boeing 737 MAX and Inspires Passengers to Capture Stunning Aerial Shots From 22,000 Feet|date=17 April 2018|access-date=1 June 2018}}</ref> 

The geographical position of Iceland is convenient for one-stop [[transatlantic flight]]s via the [[Atlantic Bridge (flight route)|Atlantic Bridge]] route, which is one pillar of the airline's business strategy, along with traffic to, from, and within the country.<ref>{{cite web
 |title        = EC Book
 |publisher    = Ecbooks.ecweb.is
 |url          = http://ecbooks.ecweb.is/icelandairgroup/annual-reports/2010/
 |access-date   = 7 October 2012
 |archive-url  = http://wayback.vefsafn.is/wayback/20110329133328/ecbooks.ecweb.is/icelandairgroup/annual-reports/2010/
 |archive-date = 2011-03-29
 |url-status     = dead
}}</ref> Their headquarters are located in [[Hafnarfjörður]].<ref name=":3" />

== History ==
=== Flugfélag Íslands in the early decades ===
[[File:Douglas C-54A TF-ISE Flugfelag LAP 02.06.53 edited-2.jpg|thumb|The first Flugfélag Íslands [[Douglas DC-4]], dubbed ''[[Gullfaxi (aircraft)|Gullfaxi]]'', arriving at [[London Heathrow Airport]] in June 1953]]

Icelandair traces its roots back to 1937, when '''Flugfélag Akureyrar''' was founded in [[Akureyri]] on the north coast of Iceland. Flight operations started in 1938 with a single [[Waco YKS-7]] configured as a [[floatplane]]. 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-wing [[seaplane]] scheduled flights from the Vatnsmýri area, and changed its name to Flugfélag Íslands,<ref>{{Cite web |title=Verkamaðurinn – 2. tölublað (12.01.1968) – Tímarit.is |url=https://timarit.is/page/2312404?iabr=on#page/n5/mode/1up/search/millilandaflug%20keflav%C3%ADkurflugv%C3%B6llur |access-date=2024-10-27 |website=timarit.is}}</ref> where it acquired another Waco aircraft and was relaunched in 1940 as '''Flugfélag Íslands''', which translates as ''Flight Company of Iceland''.<ref>{{cite web |title=Icelandair |publisher=Funding Universe |url=http://www.fundinguniverse.com/company-histories/Icelandair-Company-History.html |access-date=23 May 2011}}</ref> Seaplane flights were operated in the vicinity of Vatnsmýri in [[Skerjafjörður]] and Vatnagarðar.<ref>{{Cite web |title=Verkamaðurinn – 2. tölublað (12.01.1968) – Tímarit.is |url=https://timarit.is/page/2312404?iabr=on#page/n5/mode/1up/search/millilandaflug%20keflav%C3%ADkurflugv%C3%B6llur |access-date=2024-10-27 |website=timarit.is}}</ref> 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).<ref name="flugsafn.is">{{cite web |title=A brief history commercial Air ICELAND |publisher=Flugsafn Íslands |url=http://www.flugsafn.is/index.php?option=com_content&view=article&id=55&Itemid=145&lang=en |year=2009 |access-date=23 May 2011 |archive-url=https://web.archive.org/web/20110722023030/http://www.flugsafn.is/index.php?option=com_content&view=article&id=55&Itemid=145&lang=en |archive-date=22 July 2011 |url-status=dead |df=dmy-all }}</ref> For international purposes, the name '''Iceland Airways''' was adopted.<ref name="atdb">{{cite web|url=http://www.aerotransport.org/php/go.php?query=operator&qstring=Icelandair&where=100187&luck= |title=Icelandair (ATDB) |publisher=Aerotransport.org |date=6 August 2012|access-date=7 October 2012}}</ref>

In 1940, Iceland was [[Invasion of Iceland|invaded by the British]] and [[Reykjavík Airport]] was established south of the capital during the war. In 1946, the airport was handed over to Icelandic civilian authorities, now called [[Isavia]].<ref name=":02">{{Cite web |date=2018-11-19 |title=Saga flugvalla og flugleiðsögu by Isavia – Issuu |url=https://issuu.com/isavia0/docs/saga_isavia_web_161118_mu |access-date=2024-10-27 |website=issuu.com |language=en |archive-date=9 December 2024 |archive-url=https://web.archive.org/web/20241209184109/https://issuu.com/isavia0/docs/saga_isavia_web_161118_mu |url-status=dead }}</ref> 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.<ref name=":02"/>

The airline was based from [[Reykjavík Airport]], close to the city centre, and the fleet was expanded with a [[Beechcraft Model 18]] in 1942; and with two [[De Havilland Dragon Rapide]]s<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=777146 |title=Frægar flugvélar úr Íslandssögunni |publisher=Mbl.is |date=25 January 2004|access-date=7 October 2012}}</ref> and a [[Consolidated 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.<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=1024205 |title=Catalina-flugbáturinn TF-ISP fór fyrsta millilandaflugið |publisher=Mbl.is |date=22 June 2005 |access-date=7 October 2012}}</ref> On 11 July 1945, this aircraft operated the first commercial flight over the Atlantic Ocean for the airline, which led from Reykjavík to [[Largs]] in Scotland, with four passengers and four crew members on board. Regular flights to [[Glasgow Prestwick Airport|Prestwick Airport]] in Scotland and Copenhagen in Denmark, using [[Consolidated B-24 Liberator]] aircraft leased from [[Scottish Airlines]] were launched in 1946.<ref name="flugsafn.is" />

In the same year, the comfort and performance of domestic flights in Iceland was improved with the introduction of the [[Douglas DC-3]]. A total of six were purchased, which remained in service with the airline until 1972.<ref>{{cite web |title=Síðasta dreifing fyrir Landgræðslu |publisher=Visir |language=is|url=http://visir.is/sidasta-dreifing-fyrir-landgraedslu/article/2005505100413 |date=10 May 2005 |access-date=23 May 2011}}</ref> Until the late 1960s, Flugfélag concentrated mostly on domestic service, but it also continued operating internationally; in 1948, the [[Douglas DC-4]] was introduced on international routes, and in 1957, two new [[Vickers Viscount|Vickers 759 Viscounts]] were acquired, the first [[turboprop]] airliners to be operated by an Icelandic airline. In the 1950s, Flugfélag began to use ''Icelandair'' branding for flights beyond Iceland.<ref name="atdb"/>

[[File:Vickers 759 Visc TF-ISU Iceland LHR 07.09.62 edited-2.jpg|thumb|right|Flugfélag Íslands [[Vickers Viscount]] at London Heathrow Airport in 1962]]

In 1967, Flugfélag was the first Icelandic airline to join the [[jet age]], when a [[Boeing 727|Boeing 727-100]] dubbed ''[[Gullfaxi (aircraft)|Gullfaxi]]'' was put into service. The B-727 jet aircraft was operated from [[Keflavík International Airport|Keflavík Airport]], as the aircraft was considered too large for the smaller [[Reykjavík Airport]]. Most of Flugfélag's international operations transferred to Keflavík by this time. This left only shorter-distance flights to [[Greenland]] and the [[Faroe Islands|Faroes]] as the only international services from Reykjavík Airport.<ref>{{cite web |title=Fyrsta þota Íslendinga |publisher=Morgunbladid |url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=1068577 |date=26 February 2006 |language=is|access-date=23 May 2011}}</ref> Another 727 was acquired in 1971, and the aircraft type was operated until 1990.<ref>{{cite news |title=Kveðjuflug Heimfara |date=27 September 1990 |newspaper=Morgunblaðið |url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=56722 |language=is|access-date=23 May 2011}}</ref> In 2008, the cockpit section of ''Gullfaxi'' was put on display at the [[Aviation Museum of Iceland|Akureyri Aviation Museum]].<ref>{{cite news |title=Stjórnklefi Gullfaxa varðveittur í Flugsafninu á Akureyri |newspaper=Morgunblaðið |language=is|date=29 March 2008 |url=http://www.mbl.is/frettir/innlent/2008/03/29/gullfaxi_verdur_a_akureyri/ |access-date=23 May 2011}}</ref>

=== Loftleiðir ===
{{Main|Loftleiðir}}

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 two [[Stinson Reliant]]s and then a [[Grumman G-21 Goose]]<ref>{{cite web |url=http://www.photos.is/main.php?g2_itemId=44154 |title=ss07130.jpg Grumman flugbátur Loftleiða 1946 |publisher=Photos.is |access-date=7 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120425162512/http://www.photos.is/main.php?g2_itemId=44154 |archive-date=25 April 2012 }}</ref> [[amphibious aircraft]].
[[File:Loftleidir - Icelandic Airlines Douglas DC-8-63CF Haafke.jpg|thumb|Loftleiðir Icelandic [[Douglas DC-8|DC-8]] aircraft at [[Luxembourg Airport]] in 1978]]
Loftleiðir began scheduled international operations in 1947 from a small shed on the east apron of [[Reykjavík Airport]].<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=415950 |title=Hálf öld frá fyrsta flugi Loftleiða til Ameríku |publisher=Mbl.is |date=27 August 1998 |access-date=7 October 2012}}</ref> 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.<ref name="timarit.is">{{cite web|url=http://timarit.is/view_page_init.jsp?pageId=3165132 |title=Frjáls verslun, 40. árgangur 1981, 4. tölublað |publisher=Timarit.is |access-date=7 October 2012}}</ref> 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.<ref name="timarit.is" /><ref>{{cite web|author=Sigurgeir Orri Sigurgeirsson |url=http://sigurgeirorri.blog.is/blog/sigurgeirorri/month/2009/5/?offset=10 |title=Bloggfærslur mánaðarins, maí 2009 |publisher=sigurgeirorri.blog.is |access-date=7 October 2012}}</ref> Its pioneering low-fare service across the North Atlantic commenced in 1953.<ref>{{cite web |url=http://www.caa.is/Flugmalastjorn/SagaFlugmalastjornar/AtburdiriflugsoguIslands/ |title=Atburðir í flugsögu Íslands |language=is |publisher=Caa.is |access-date=7 October 2012 |archive-date=25 April 2012 |archive-url=https://web.archive.org/web/20120425162513/http://www.caa.is/Flugmalastjorn/SagaFlugmalastjornar/AtburdiriflugsoguIslands/ |url-status=dead }}</ref> Loftleiðir is considered a precursor to the [[low-cost carrier]]s, that emerged worldwide in the 1970s, as it was not part of or subject to [[International Air Transport Association|IATA]] fares or rules.<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=128676 |title=FIMMTÍU ÁR FRÁ STOFNUN LOFTLEIÐA Stærsta ævintýri lýðveldisins Jakob F |publisher=Mbl.is |access-date=7 October 2012}}</ref><ref>{{cite web|url=http://sigurgeirorri.blog.is/users/b3/sigurgeirorri/files/145293_vi_skiptabla_i_14-05-2009.pdf |title=Orrustan um Loftleidir |publisher=Sgurgeirorri.org |access-date=7 October 2012}}</ref><ref>{{cite web|url=https://issuu.com/sigurgeirorri/docs/bookletloftleidirbls2 |title=Loftleidir |publisher=Issuu.com |date=2 September 2010 |access-date=7 October 2012}}</ref> Loftleiðir, anticipating increased demand, began construction of a large passenger terminal at [[Reykjavík Airport]].<ref>{{Cite web |title=Frjáls verslun – 1. tölublað (01.01.1975) – Tímarit.is |url=https://timarit.is/page/3158412?iabr=on#page/n8/mode/1up/search/loftlei%C3%B0ir%20reykjav%C3%ADkurflugvelli |access-date=2024-10-30 |website=timarit.is}}</ref>

The late 1960s were an exciting time for Loftleiðir.<ref>{{cite news| url=https://www.nytimes.com/2009/02/17/business/17helgason.html?_r=1&scp=1&sq=helgason&st=cse | work=The New York Times | first=Caroline | last=Brothers | title=Sigurdur Helgason, 87, Airfare Pioneer, Dies | date=17 February 2009}}</ref> In 1964, the airline acquired [[Canadair CL-44]] aircraft, which were the largest [[Transatlantic flight|transatlantic]] aircraft operating at the time.<ref>{{Cite web |title=Aircraft Photo of TF-LLF {{!}} Canadair CL-44J {{!}} Loftleidir – Icelandic Airlines {{!}} AirHistory.net #339166 |url=https://www.airhistory.net/photo/339166/TF-LLF |access-date=2024-10-27 |website=AirHistory.net |language=en}}</ref> As a result of the large size of the new aircraft, Loftleiðir moved its entire operation to [[Keflavík International Airport|Keflavík Airport]] in the same year, abandoning [[Reykjavík Airport]] completely.<ref name=":12">{{Cite web |title=Vorið – 3. Tölublað (01.09.1967) – Tímarit.is |url=https://timarit.is/page/4566914?iabr=on#page/n21/mode/1up/search/millilandaflug%20keflav%C3%ADkurflugv%C3%B6llur |access-date=2024-10-30 |website=timarit.is}}</ref> 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.<ref>{{Cite web |title=Frjáls verslun – 1. tölublað (01.01.1975) – Tímarit.is |url=https://timarit.is/page/3158412?iabr=on#page/n8/mode/1up/search/loftlei%C3%B0ir%20reykjav%C3%ADkurflugvelli |access-date=2024-10-30 |website=timarit.is}}</ref>

In 1969, the company acquired International Air Bahama, a small Bahamian airline that operated transatlantic nonstop service between [[Nassau, Bahamas|Nassau]] and Luxembourg using [[Douglas DC-8]] jetliners,<ref>http://www.timetableimgaes.com {{dead link|date=November 2017 |bot=InternetArchiveBot |fix-attempted=yes }}, 1 Nov. 1970 International Air Bahama system timetable</ref> and a year later, Loftleiðir became one of the founders of [[Cargolux]], a cargo airline. Also in 1970, Loftleiðir entered the jet age with its first two DC-8 aircraft.<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=1091980 |title=Flugstjórar Skymaster-vélarinnar Heklu |publisher=Mbl.is |access-date=7 October 2012}}</ref>

During those years, many people including the company's own staff called Loftleiðir "the [[Hippie]] Airline" or "the Hippie Express".<ref>{{cite web|url=http://skemman.is/stream/get/1946/3333/10442/4/Eyrun_Oskarsdottir_fixed.pdf |title=Efnisyfirlit |publisher=[[Skemman.is]] |access-date=7 October 2012}}</ref> 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. president [[Bill Clinton]].<ref>{{cite web |title=Loftleiðir Icelandic Airlines |publisher=knol |url=http://knol.google.com/k/fausto-gardini/luxembourg-new-york-luxembourg/2h2drar9l37dn/12# |access-date=7 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20110721040034/http://knol.google.com/k/fausto-gardini/luxembourg-new-york-luxembourg/2h2drar9l37dn/12 |archive-date=21 July 2011 }}</ref><ref>{{cite web |title=Icelandair hafði áhrif á samband Hillary og Bill Clintons – Hitti Össur fyrir stundu í USA |first=Steinunn Edda |last=Steingrímsdóttir |language=is |publisher=Pressan |url=http://www.pressan.is/Frettir/LesaFrett/icelandair-hafdi-ahrif-a-samband-hillary-og-bill-clintons---hitti-ossur-fyrir-stundu-i-usa |date=23 May 2011 |access-date=23 May 2011 |archive-url=https://web.archive.org/web/20150912073015/http://www.pressan.is/Frettir/LesaFrett/icelandair-hafdi-ahrif-a-samband-hillary-og-bill-clintons---hitti-ossur-fyrir-stundu-i-usa |archive-date=12 September 2015 |url-status=dead }}</ref>

=== Merger with Loftleiðir ===
During the [[1970s 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, and this was successful in 1973 following lengthy and difficult negotiations,<ref>{{cite web|url=http://timarit.is/view_page_init.jsp?pageId=3165359 |title=Frjáls verslun, 40. árgangur 1981, 9. tölublað |publisher=Timarit.is |access-date=7 October 2012}}</ref> A holding company called ''[[Stodir|Flugleiðir]]'' was created, which combined the two companies and began to streamline staff and operations.<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?radnr=342619 |title=mbl.is |publisher=mbl.is |access-date=7 October 2012}}</ref> In 1975, the Icelandic government provided a $13.5&nbsp;million loan to Flugleiðir.<ref name=":0">{{Cite web|title=Yrði ekki í fyrsta sinn – Viðskiptablaðið|url=http://www.vb.is/frettir/yrdi-ekki-i-fyrsta-sinn/161574/|website=www.vb.is|language=en-us|url-status=live|archive-url=https://web.archive.org/web/20200508103447/https://www.vb.is/frettir/yrdi-ekki-i-fyrsta-sinn/161574/|archive-date=8 May 2020|access-date=2020-05-03}}</ref> The staff of Loftleiðir complained that Flugfélag Íslands, although smaller, had gained the upper hand in the united company.<ref>{{cite news |title=Hlakkaði alltaf til næsta dags |language=is|newspaper=Morgunblaðið |url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=757502 |date=15 October 2003 |access-date= 23 May 2011}}</ref> At the time of the merger, international transatlantic crossings made up two-thirds of the passenger traffic of the airline, and the fleet of Douglas DC-3s and Boeing 727s of Flugfélag Íslands was joined by the [[Douglas DC-8]]s of Loftleiðir. In 1979, the two airlines Flugfélag Íslands and Loftleiðir merged into one airline, '''Flugleiðir''' ("Flight Routes"), and the airline was renamed as Icelandair.

=== Post-merger Icelandair ===
[[File:Icelandair Douglas DC-8 Luxembourg - 7 August 1983.jpg|thumb|A pair of Icelandair [[Douglas DC-8]]s at [[Luxembourg - Findel Airport|Luxembourg-Findel Airport]] in 1983]]
[[File:Boeing 727-185C, Icelandair AN1937278.jpg|thumb|right|A [[Boeing 727]] of Icelandair approaches [[London Heathrow Airport]] in 1983.]]

In 1980, the Icelandic government provided a loan to Icelandair due to the company's bad financial situation.<ref name=":0" />

[[File:Icelandair Boeing 737-400 Aragao.jpg|thumb|Icelandair [[Boeing 737 Classic|Boeing 737-400]] at [[Faro Airport]] in 1992]]

The aircraft fleet of Icelandair remained mainly unchanged until the [[Boeing 757|Boeing 757-200]] became the new backbone for transatlantic flights during the 1990s. The domestic Fokker F27s were replaced by [[Fokker 50]]s and Boeing 737s deployed on European routes. The European hub at [[Luxembourg Findel Airport|Luxembourg Airport]] had been taken over from Loftleiðir. Passenger count topped one million in 1997<ref>{{Cite news|url=http://icelandreview.com/news/2015/07/31/rapid-growth-icelandic-aviation-sector|title=Rapid Growth in Icelandic Aviation Sector|last=Elliott|first=Alëx|date=2015-07-31|work=Iceland Review|access-date=2017-05-05|language=en}}</ref> 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,<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=414893 |title=1.578 milljóna króna tap á fyrri árshelmingi |publisher=Mbl.is |date=21 August 1998 |access-date=7 October 2012}}</ref> closing it down altogether by 1999.<ref>{{Cite web|url=http://luxembourgensia.blogspot.com/2013/01/9-january-1999-icelandair-last-flight.html|title=9 January 1999: Icelandair Last Flight.|access-date=2017-05-05}}</ref>

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 the [[Air Iceland Connect|Air Iceland (Icelandic: ''Flugfélag Íslands'')]] subsidiary,<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=313552 |title=Innanlandsflug Flugleiða verður sameinað Flugfélagi Norðurlands undir nafninu |publisher=Mbl.is |access-date=7 October 2012}}</ref> 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. 


=== Development in the early 2000s ===
In 2001, the Icelandair hub was moved to [[Keflavík International Airport]]. As Icelandair particularly focuses on flights to North America, the company was significantly affected by the [[Operation Yellow Ribbon|airspace closure]] following the [[September 11 attacks]] in the same year. The Flugleiðir holding was reorganized as [[Icelandair Group]] (for aviation business) and [[Stodir|FL Group]] (for non-aviation finance and investment business) between 2002 and 2005, with Icelandair becoming the largest and most important of eleven subsidiaries. The [[aircraft lease|wet-lease]] and charter department, which was founded in 2003, was named ''Loftleiðir Icelandic'', thus re-introducing a familiar name.<ref>{{cite web|url=http://www.loftleidir.com/ |title=A reliable long term partner |website=Loftleidir.com |access-date=7 October 2012}}</ref>

Icelandair was hit by the [[2008–11 Icelandic financial crisis|2008 financial crisis]] in the country and was further impacted by a volcanic eruption in 2010.<ref>{{Cite news |date=2010-03-21 |title=Volcano erupts in south Iceland |url=https://news.bbc.co.uk/2/hi/europe/8578576.stm |access-date=2024-12-08 |language=en-GB}}</ref> Air traffic restrictions following the [[2010 eruptions of Eyjafjallajökull]] resulted in large parts of the European airspace [[Air travel disruption after the 2010 Eyjafjallajökull eruption|being 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.<ref name="en.keilir.net">{{cite web|url=http://en.keilir.net/static/files/conferences/eyjaaviation/lunchday2/icelandair-lunch.pdf|title=Presentation of the measure taken by Icelandair to cope with the 2010 air travel disruptions|publisher=Keilir.net|access-date=7 October 2012|archive-date=23 March 2012|archive-url=https://web.archive.org/web/20120323191122/http://en.keilir.net/static/files/conferences/eyjaaviation/lunchday2/icelandair-lunch.pdf|url-status=dead}}</ref> Thrice-daily crisis meetings were held at the airline's headquarters. Icelandair tried to operate as many passenger flights as possible, keeping its hub at [[Keflavík International Airport|Keflavík]] open and diverting European flights to airports that were still open. The eventual closure of Keflavík due to the [[volcanic ash]] cloud coincided with an improvement in the situation towards Europe, which allowed Icelandair to move its headquarters with 200 staff to Glasgow and operate flights from there for ten days,<ref name="icelandair.is">{{cite web |title=Icelandair and the Eyjafjallajökull volcanic eruption in 2010 |publisher=Icelandair |url=http://www.icelandair.is/specials/pages/is/eyjafjallajokull/ |access-date=23 May 2011 |archive-date=4 May 2014 |archive-url=https://web.archive.org/web/20140504141923/http://www.icelandair.is/specials/pages/is/eyjafjallajokull/ |url-status=dead }}</ref><ref>{{cite web|url=http://www.flightglobal.com/articles/2010/04/28/341225/icelandair-shifts-volcano-hit-hub-operation-back-to.html |title=Icelandair shifts volcano-hit hub operation back to Reykjavik |publisher=Flightglobal.com |date=28 April 2010 |access-date=7 October 2012}}</ref> with shuttle flights to Iceland's [[Akureyri Airport]] and round-the-clock bus shuttles onwards to Reykjavík.

In the [[Consequences of the April 2010 Eyjafjallajökull eruption|aftermath of the eruption]], the government of Iceland launched the successful<ref>{{cite web|url=http://www.icenews.is/index.php/2011/05/11/iceland-continues-to-inspire-with-successful-tourism-campaign/|title=Iceland continues to inspire with successful tourism campaign|date=11 May 2011|publisher=Icenews.is|access-date=11 May 2011}}</ref><ref>{{cite web |title=Inspired by Iceland campaign continues to boost tourism in Iceland |publisher=eNewsWire UK |url=http://www.enewswire.co.uk/2011/05/13/inspired-iceland-campaign-continues-boost-tourism-iceland/ |date=13 May 2011 |access-date=23 May 2011}}</ref><ref>{{cite web |first1=Anna |last1=Valdimarsdóttir |first2=Inga Hlín |last2=Pálsdóttir |title=Joining Forces: Inspired by Iceland |publisher=Tourism Review |url=http://www.tourism-review.com/travel-tourism-magazine-inspired-by-iceland-successful-tourism-promotion-campaign--article1399 |access-date=23 May 2011}}</ref> "Inspired by Iceland" campaign to regain confidence in travelling to Iceland for tourists and business people,<ref>{{cite web|url=https://www.youtube.com/watch?v=npawmHVaf-E |archive-url=https://ghostarchive.org/varchive/youtube/20211211/npawmHVaf-E| archive-date=2021-12-11 |url-status=live|title=Inspired by Iceland Video |date=3 June 2010 |publisher=YouTube |access-date=7 October 2012}}{{cbignore}}</ref> of which Icelandair was a leading participant and initiator.<ref name="icelandair.is"/>

When the [[Grímsvötn]] 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.<ref>{{cite news |title=UK 'better prepared' for volcanic ash than last year |date=22 May 2011 |url=https://www.bbc.co.uk/news/av/uk-13496391 |publisher=BBC |access-date=23 May 2011}}</ref><ref>{{cite news| url=https://www.bbc.co.uk/news/uk-13498477 | work=BBC News | title=Flights cancelled as ash cloud heads towards UK | date=23 May 2011}}</ref> Weekly newspaper ''[[The Economist]]'' claimed that Icelandair could even take advantage when catering for [[disaster tourism|disaster tourists]].<ref>{{cite news| url=https://www.economist.com/blogs/gulliver/2011/05/grimsvotn_volcano_and_disaster_tourism | newspaper=The Economist | title=Come to Iceland! | date=28 May 2011}}</ref>

In February 2011, Icelandair was chosen "The Knowledge Company" of the year, and Icelandair CEO [[Birkir Hólm Guðnason]] was picked as "Man of the Year" in the Icelandic business community.<ref name="sa.is">{{cite web |url=http://www.sa.is/frettir/almennar/nr/5110/ |title=Icelandair hlaut Þekkingarverðlaunin 2011 – Fréttir – Samtök atvinnulífsins |publisher=Sa.is |date=25 February 2011 |access-date=7 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120425152447/http://www.sa.is/frettir/almennar/nr/5110/ |archive-date=25 April 2012 }}</ref> 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."<ref name="sa.is"/> 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.<ref>[http://www.imark.is/Forsida/Vidburdir/Islensku-markadsverdlaunin] {{webarchive|url=https://web.archive.org/web/20111231134545/http://www.imark.is/Forsida/Vidburdir/Islensku-markadsverdlaunin|date=31 December 2011}}</ref>

''Icelandair Info'', the [[inflight magazine]] of Icelandair, was printed four times a year in Icelandic and English from 2008 until 2020. It also contained the product catalogue for the airline's Saga Shop, now a separate magazine.<ref>{{Cite web |title=Icelandair's in-flight magazine, Stopover, is no longer published {{!}} Icelandair US |url=https://www.icelandair.com/support/on-board/stopover-magazine/ |access-date=2025-08-27 |website=www.icelandair.com |language=en-us}}</ref>

Icelandair moved its headquarters to Hafnarfjörður in 2024, to consolidate its offices under one roof. Their previous headquarters at [[Reykjavík Airport]] were in use for over 50 years, having been built by [[Loftleiðir]].<ref name=":3">{{Cite web |title=Icelandair flutt til Hafnarfjarðar |url=https://vb.is/frettir/icelandair-flutt-til-hafnarfjardar/ |access-date=2025-03-27 |website=www.vb.is}}</ref>

After having launched scheduled flights to Washington, D.C., in 2011,<ref>{{cite web |url=http://www.icelandair.us/information/media/newslist/detail/item463406/Icelandair_Announces_Flights_from_Washington,_D_C_/ |title=Icelandair Announces Flights from Washington, D.C. |publisher=Icelandair.us |date=24 August 2012 |access-date=7 October 2012 |archive-date=24 December 2010 |archive-url=https://web.archive.org/web/20101224070828/http://icelandair.us/information/media/newslist/detail/item463406/Icelandair_Announces_Flights_from_Washington,_D_C_/ |url-status=dead }}</ref> [[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.<ref>{{cite web |url=http://www.icelandair.us/information/media/newslist/detail/item541361/Icelandair_Takes_Off_from_Denver/ |title=Icelandair Takes Off from Denver |publisher=Icelandair.us |date=24 August 2012 |access-date=7 October 2012 |archive-date=24 August 2015 |archive-url=https://web.archive.org/web/20150824225918/http://www.icelandair.us/information/media/newslist/detail/item541361/icelandair_takes_off_from_denver |url-status=dead }}</ref> Also in 2012, Icelandair introduced flights linking [[Akureyri Airport|Akureyri]] to its Keflavík hub through subsidiary company [[Air Iceland]].<ref>{{cite web|url=http://www.icelandair.is/information/media/newslist/detail/item588851/_Flug_Icelandair_fra_Akureyri_hefst_i_dag|title=Flug Icelandair frá Akureyri hefst í dag|access-date=24 April 2015}}</ref>

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.<ref>{{cite web|url=http://www.icelandair.ca/information/media/newslist/detail/item698766/icelandair_announces_growth_plans_for_2014/|title=Icelandair Announces Growth Plans for 2014 – Icelandair|access-date=24 April 2015}}</ref>

On 9 December 2014, Icelandair revealed a northern lights-themed Boeing 757-200 (registration TF-FIU) named ''[[Hekla Aurora]]''.<ref>{{cite web|url=https://www.flickr.com/photos/bradley_at_egsh/15985438512/|title=Flickr – Photo Sharing!|date=9 December 2014|access-date=24 April 2015}}</ref> The exterior features artwork depicting an Icelandic winter scene and LED mood lighting emulating the [[Aurora Borealis]].<ref name="auto">{{cite web|url=http://www.icelandair.us/hekla-aurora|title=Hekla Aurora|access-date=8 September 2018}}</ref>

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.<ref>{{cite web|url=http://www.icelandair.co.uk/information/media/newslist/detail/item737042/icelandair_to_start_flights_from_birmingham_to_iceland/|title=Icelandair to fly from Birmingham to Iceland, USA and Canada|access-date=24 April 2015}}</ref> 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.<ref name="newsclient.omxgroup.com">{{cite web|url=https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=623883&lang=en|title=Icelandair Group announces continued growth in international flights for 2015|access-date=20 July 2016}}</ref> 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.<ref>{{cite web|url=http://www.icelandair.us/news/story/icelandair-announces-service-from-chicago-ohare/|title=Icelandair Announces Service from Chicago O'Hare – Icelandair.us|access-date=20 July 2016|archive-date=2 October 2017|archive-url=https://web.archive.org/web/20171002195136/http://www.icelandair.us/news/story/icelandair-announces-service-from-chicago-ohare/|url-status=dead}}</ref> 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 by [[Air Iceland Connect]] (a subsidiary of Icelandair Group), commenced in March of the following year, with flights scheduled four times per week.<ref>{{cite web|url=http://www.icelandair.us/news/story/icelandair-introduces-service-to-aberdeen-scotland/|title=Icelandair Introduces Service to Aberdeen, Scotland – Icelandair.us|access-date=20 July 2016|archive-date=2 October 2017|archive-url=https://web.archive.org/web/20171002202252/http://www.icelandair.us/news/story/icelandair-introduces-service-to-aberdeen-scotland/|url-status=dead}}</ref>

Icelandair commenced scheduled flights to [[Orly Airport|Paris Orly Airport]] beginning on 29 March 2016.<ref>{{cite web|url=http://www.icelandair.us/news/story/icelandair-adds-flights-to-paris-orly-airport/|title=Icelandair Adds Flights to Paris Orly Airport – Icelandair.us|access-date=20 July 2016|archive-date=13 May 2016|archive-url=https://web.archive.org/web/20160513083300/http://www.icelandair.us/news/story/icelandair-adds-flights-to-paris-orly-airport|url-status=dead}}</ref> Services to [[Montréal–Trudeau International Airport|Montréal–Trudeau Airport]] began on 26 May 2016.<ref>{{cite web|url=http://www.torontosun.com/2015/08/19/icelandair-to-launch-seasonal-service-from-montreal-in-may|title=Icelandair to launch seasonal service from Montreal in May|work=torontosun |agency=The Canadian Press|access-date=20 July 2016}}</ref> In September 2016, Icelandair announced services to [[Philadelphia International Airport|Philadelphia]], US, starting in May 2017 and [[Tampa International Airport|Tampa]], US starting in Sep 2017.<ref>{{cite web|url=http://www.icelandnaturally.com/article/icelandair-now-taking-philadelphia-and-tampa|title=Icelandair Is Now Taking Off From Philadelphia and Tampa}}</ref>

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.<ref>{{Cite news|url=https://www.telegraph.co.uk/travel/news/icelandair-vatnajokull-glacier-plane/ |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/travel/news/icelandair-vatnajokull-glacier-plane/ |archive-date=12 January 2022 |url-access=subscription |url-status=live|title=Is this the world's coolest plane?|work=The Telegraph|access-date=2017-05-22|language=en-GB}}{{cbignore}}</ref><ref>{{Cite web|url=http://www.icelandair.us/vatnajokull/|title=Vatnajökull {{!}} Icelandair|website=www.icelandair.us|language=en|access-date=2017-05-22}}</ref> In August 2017, Icelandair announced service five days per week to [[Cleveland Hopkins International Airport|Cleveland]], US, which began on 16 May 2018.<ref>{{cite web|title=Icelandair to connect Cleveland to Europe|url=http://www.icelandair.us/news/story/icelandair-connects-cleveland-to-europe/|website=Icelandair.us|access-date=23 August 2017}}</ref> The route was cut in early 2019.<ref>{{cite web|title=Icelandair cancels service from Cleveland, cites Boeing 737 Max 8 woes|url=https://www.cleveland.com/news/2019/03/icelandair-cancels-service-from-cleveland-cites-boeing-737-max-8-woes.html#:~:text=CLEVELAND%2C%20Ohio%20%E2%80%93%20Icelandair%20is%20canceling,737%20Max%208%20plane%20exclusively.|website=cleveland.com| date=26 March 2019 |access-date=16 December 2021}}</ref>

The airline offered Economy Comfort until April 2018.<ref>{{Cite news |last=Schlappig |first=Ben |date=2018-03-07 |title=Surprising: Icelandair Is Eliminating Economy Comfort – One Mile at a Time |url=http://onemileatatime.boardingarea.com/2018/03/07/icelandair-eliminating-economy-comfort/ |access-date=2018-03-08 |work=One Mile at a Time |language=en-US}}</ref>

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.<ref>{{cite web|url=https://www.icelandair.com/blog/icelandair-is-going-to-kansas-city/|title=Icelandair announces service to Kansas City International Airport (MCI) – Icelandair|website=www.icelandair.com|access-date=27 March 2019}}</ref> Icelandair commenced four weekly flights to and from Dallas Fort Worth on 30 May 2018. It ended on 6 March 2019.<ref>{{cite web|url=https://www.icelandair.com/blog/icelandair-announces-service-from-dallas-fort-worth-international/|title=Icelandair Announces Service from Dallas Fort Worth – Icelandair|website=www.icelandair.com|access-date=27 March 2019}}</ref><ref>{{cite web|url=https://www.routesonline.com/news/38/airlineroute/282019/icelandair-closes-dallas-bookings-from-march-2019/|title=Icelandair closes Dallas bookings from March 2019|publisher=Routesonline|access-date=17 December 2018}}</ref>

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.<ref>{{Cite news|url=https://www.flightglobal.com/news/articles/icelandair-group-to-take-over-budget-rival-wow-air-453315/|title=Icelandair Group to take over budget rival Wow Air|date=2018-11-05|work=Flightglobal.com|access-date=2018-11-05|language=en-GB}}</ref> On 29 November, Icelandair abandoned this endeavour as the shareholders’ meeting pre-conditions were unlikely to be met.<ref>{{cite news |url= https://www.flightglobal.com/news/articles/icelandair-group-scraps-wow-air-takeover-454008/ |title= Icelandair Group scraps Wow Air takeover |date= 29 Nov 2018 |author= David Kaminski-Morrow |work= Flightglobal}}</ref>

===Since 2020===
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 1 [[Icelandic króna]] following a public share offering.<ref>{{Cite web |title=Icelandair Group hf. – Increase in share capital |url=https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=956471&lang=en |access-date=2021-02-04 |website=newsclient.omxgroup.com}}</ref> In addition, the Icelandic government decided to guarantee a line of credit for Icelandair. The guarantee amounts to $120&nbsp;million.<ref>{{Cite web|title=Icelandair Group hf.: Government Guaranteed Credit Facility Approved by the Icelandic Government|url=https://www.government.is/diplomatic-missions/embassy-article/2020/08/18/Icelandair-Group-hf.-Government-Guaranteed-Credit-Facility-Approved-by-the-Icelandic-Government/|access-date=2021-02-04|website=www.government.is|language=en-US}}</ref>

On 16 March 2021, domestic flights operated by [[Air Iceland Connect]] (a wholly owned subsidiary of the [[Icelandair Group]]) merged under Icelandair branding while retaining its existing [[air operator's certificate]].<ref>{{Cite web|date=2021-03-09|title=Air Iceland Connect to disappear|url=https://www.ruv.is/frett/2021/03/09/air-iceland-connect-to-disappear|access-date=2021-03-09|website=RÚV|language=is}}</ref><ref>{{Cite web |title=Air Iceland Connect sameinað Icelandair |url=https://www.mbl.is/vidskipti/frettir/2020/03/31/air_iceland_connect_sameinad_icelandair/ |access-date=2024-12-08 |website=www.mbl.is |language=is}}</ref>

Icelandair announced the launch of a new route to [[Istanbul Airport|Istanbul]], operating four times a week beginning September 5, 2025.<ref>{{Cite web |title=This Budget Airline Is Making It Easier to Get to Turkey — What to Know |url=https://www.travelandleisure.com/icelandair-istanbul-turkey-southwest-airlines-8746168 |access-date=2024-11-15 |website=Travel + Leisure |language=en}}</ref> In January 2025, Icelandair was reported to be launching a non-stop flight between [[Reykjavík|Reykjavik]] and Miami with three weekly flights starting in January 2026. The route will be serviced by its [[Airbus A321neo|Airbus A321LR]] aircraft.<ref>{{Cite web |last=Schlappig |first=Ben |date=2025-01-07 |title=Icelandair Adding Miami Flights With New Airbus A321LR |url=https://onemileatatime.com/news/icelandair-miami-flights/ |access-date=2025-01-19 |website=One Mile at a Time |language=en-US}}</ref>

In October 2025, Icelandair announced it would accelerate the retirement of all their Boeing 757 and 767 aircraft to reduce costs. The aircraft will be phased out by 2026.<ref name=boeingretirement>[https://www.aerotelegraph.com/ticker/icelandair-flottet-boeing-767-frueher-aus-um-verluste-zu-stoppen/6h2ydxx aerotelegraph.com] (German) 24 October 2025</ref>

== Inflight service ==
=== Cabins ===
[[File:10-FEB-2024 - FI528 KEF-BER (TF-ICR - B737 MAX 8) (01).jpg|thumb|Economy cabin aboard an Icelandair [[Boeing 737 MAX 8]]]]Icelandair offers two booking classes: Economy and Saga Class. All of Icelandair's aircraft are equipped with a free-of-charge [[video on demand|VOD]] [[in-flight entertainment]] system that includes seatback touch-screen monitors for each passenger.<ref>{{cite web |date=24 August 2012 |title=Economy Class |url=http://www.icelandair.us/information/travel-classes/economy-class/ |access-date=7 October 2012 |publisher=Icelandair.us}}</ref> Saga Class (similar to business class) was introduced in 1984.<ref>{{Cite web |title=Frjáls verslun – 4. tölublað (01.04.1985) – Tímarit.is |url=https://timarit.is/page/3167746?iabr=on#page/n24/mode/2up/search/saga%20class |access-date=2025-08-27 |website=timarit.is}}</ref>

Icelandair has a tradition of playing Icelandic music during the boarding process. In 2013, Icelandic band [[Sigur Rós]] debuted its album ''[[Valtari]]'' exclusively onboard Icelandair's aircraft, two months before the album's general release. ''[[Biophilia (album)|Biophilia]]'', [[Björk]]'s 2011 album, had earlier been released on Icelandair's fleet in the same way.<ref>{{cite web |title=Sigur Rós debuts Valtari exclusively on board Icelandair |url=http://www.icelandair.co.uk/information/media/newslist/detail/item584665/Sigur_Ros_debuts_Valtari_exclusively_on_board_Icelandair |access-date=24 April 2015}}</ref>

Limited services are provided aboard Icelandair's [[De Havilland Canada Dash 8|Dash- 8]] aircraft used for domestic/Faroe and some Greenland routes. There is no Saga Class, [[In-flight entertainment|IFE system]] or Wi-fi available and the food/beverage menu is limited. On domestic services, only water and chocolate is provided due to short flight durations of 45 minutes.{{cn|date=August 2025}}

==== Economy ====
Complimentary drinks including coffee, tea and water are available on all flights, as well as soft drinks for North American routes. A [[buy on board]] service for food and alcoholic drinks is provided for economy class and a wider range of meals can be pre-ordered.<ref>{{cite web |title=Saga Shop Kitchen |url=https://www.icelandair.com/support/on-board/saga-kitchen/ |access-date=1 June 2018 |publisher=Icelandair.us}}</ref> A free VOD in-flight entertainment system is available for each passenger and Wi-fi is available for a fee in economy class.<ref>{{cite web |title=Icelandair to Offer In-Flight Wi-Fi |url=http://www.icelandair.co.uk/information/media/newslist/detail/item588581/Icelandair_to_Offer_In-Flight_Wi-Fi |access-date=24 April 2015}}</ref><ref>{{cite web |author=Row 44, Inc. |date=31 May 2012 |title=Icelandair Selects Row 44 To Provide Fleet Wide... – REYKJAVIK, Iceland and WESTLAKE VILLAGE, Calif., 31 May 2012 /PRNewswire/ – |url=http://www.prnewswire.com/news-releases-test/icelandair-selects-row-44-to-provide-fleet-wide-wifi-and-premium-entertainment-content-155953395.html |access-date=24 April 2015}}</ref>

==== Saga Class ====
[[File:05-FEB-2024 - FI689 KEF-MCO (TF-ICG - B737 MAX 8) (02).jpg|thumb|203x203px|Icelandair Saga Class cabin on a Boeing 737 MAX 8]]
Icelandair's Saga Class has similarities between a U.S. domestic [[First class (aviation)#In North America|first class]] product and an international long-haul premium economy product. It has dedicated wide 2-2 seating (but without lie-flat beds) and includes a premium meal service, including alcoholic beverages. An amenity kit, video inflight entertainment system and free [[Wi-Fi]] service is also provided.<ref>{{Cite web |last1=Ireland |first1=Patrick HughesPatrick is a travel writer from |last2=world |first2=now living in Belfast He's spent years exploring the |last3=Flights |first3=Enjoying the Journey on Epic |last4=Trains |first4=Scenic |last5=trips |first5=finding out how to make smart connections! Planet Patrick is where he shares stories with people who want to make the most of their |date=2025-06-06 |title=Icelandair Saga Premium Review: Worth the Upgrade? |url=https://thisisplanetpatrick.com/icelandair-saga-premium/ |access-date=2025-08-27 |language=en-US}}</ref>

=== Frequent-flyer programme ===
Icelandair's [[frequent-flyer program]]me 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.<ref>{{cite web|url=https://www.icelandair.us/frequent-flyer/ |title=Icelandair – Flights to Iceland & Europe via Reykjavik, cheap flights with Icelandair |publisher=Icelandair.us |date=24 August 2012 |access-date=7 October 2012}}</ref> As of January 2021, Alaska Airlines and JetBlue are the only partner airlines of Icelandair eligible to earn Saga points through Saga Club,<ref>{{Cite web|title=Saga Points – Earn Frequent Flyer Points with Saga Club {{!}} Icelandair|url=https://www.icelandair.com/frequent-flyer/benefits/earn-points/|access-date=2021-01-12|website=www.icelandair.com|language=en-US}}</ref> while Alaska Airlines is the only partner airline that allows for redeeming points towards travel.<ref>{{Cite web|title=Use your Saga Points {{!}} Icelandair|url=https://www.icelandair.com/frequent-flyer/benefits/redeem-points/|access-date=2021-01-12|website=www.icelandair.com|language=en-US}}</ref>

== Destinations ==
{{main|List of Icelandair destinations}}

Icelandair flies between Iceland and several destinations across Europe and North America. A few of these destinations are seasonal. Since the 1960s, Icelandair has offered passengers travelling on transatlantic flights between North America and Europe an opportunity to [[Layover|stopover]] in Iceland for up to seven days, at no additional cost.<ref>{{cite web |title=Explore Iceland on an Icelandair Stopover – Icelandair |url=http://www.icelandair.us/flights/stopover/ |access-date=20 July 2016}}</ref>

===Codeshare agreements===
Icelandair [[Codeshare agreement|codeshares]] with the following airlines:<ref>{{Cite web|title=Our partner airlines|url=https://www.icelandair.com/about/our-partner-airlines/|access-date=2024-06-09|website=www.icelandair.com|language=en-US}}</ref>

{{div col}}
* [[Air Greenland]]<ref name=october24>{{Cite web|title=New partnerships: Atlantic Airways and Air Greenland|url=https://www.icelandair.com/blog/new-partnerships-atlantic-airways-air-greenland/|access-date=2024-10-20|website=www.icelandair.com|language=en-US}}</ref>
* [[airBaltic]]{{cn|date=October 2025}}
* [[Air India]]
* [[Alaska Airlines]]
* [[Atlantic Airways]]{{cn|date=October 2025}}
* [[Emirates (airline)|Emirates]]
* [[Finnair]]
* [[ITA Airways]]{{cn|date=October 2025}}
* [[JetBlue]]
* [[Scandinavian Airlines]]
* [[TAP Air Portugal]]
* [[Turkish Airlines]]
{{Div col end}}

=== Interline agreements ===
Icelandair has [[Interlining|interline agreements]] with over 70 airlines,<ref>{{Cite web |title=Our Partner Airlines {{!}} Icelandair US |url=https://www.icelandair.com/about/our-partner-airlines/#interline-partners |access-date=2025-04-10 |website=www.icelandair.com |language=en-US}}</ref> including: 
* Hahn Air<ref>{{cite web | url=https://www.hahnair.com/en/partner-carriers | title=Partner Carriers &#124; Hahnair }}</ref>
* [[Loganair]]<ref>{{cite web|title=Our Global Airline Partners|url=https://www.loganair.co.uk/travel-trade-support/our-global-airline-partners/|website=Loganair}}</ref>
* [[My Freighter Airlines]]<ref>{{cite news |last1=Jeffrey |first1=Rebecca |title=My Freighter signs interline agreement with Icelandair Cargo |url=https://www.aircargonews.net/freighter-operators/my-freighter-signs-interline-agreement-with-icelandair-cargo/1080160.article |access-date=1 June 2025 |work=Air Cargo News |date=23 May 2025 |language=en}}</ref>
* [[Porter Airlines]]<ref>{{cite web | url=https://www.flyporter.com/en/about-porter/our-airline-partners | title=Our Airline Partners}}</ref> 
* [[Southwest Airlines]]<ref>{{cite web |title=A new partnership: Icelandair and Southwest Airlines |url=https://www.icelandair.com/blog/new-partnership-icelandair-southwest/ |access-date=7 November 2024}}</ref>
* [[Sun Country Airlines]]<ref>{{Cite web |url=https://suncountry.com/airline-partners |access-date=October 26, 2021 |title=Airline Partners |website=SunCountry.com }}</ref>
* [[Swiss International Air Lines]]<ref name="SWISS partner airlines">{{cite web|url=https://www.swiss.com/gb/en/prepare/baggage/baggage-provisions-partners|title=Fees for partner airlines|website=SWISS|access-date=27 September 2018|archive-date=9 August 2020|archive-url=https://web.archive.org/web/20200809150931/https://www.swiss.com/gb/en/prepare/baggage/baggage-provisions-partners|url-status=live}}</ref> 
* [[WestJet]]<ref name="partners">{{Cite web|url=https://www.westjet.com/en-ca/about-us/airline-partners|title=Our airline partners|website=www.westjet.com|access-date=January 14, 2025}}</ref>

== Fleet ==
===Current fleet===
{{As of|2025|11}}, Icelandair operates the following aircraft, and most of the aircraft in Icelandair's fleet are named after [[List of volcanoes in Iceland|Icelandic volcanoes]].<ref>{{Cite web |date=2025 |title=Our fleet |url=https://www.icelandair.com/about/our-fleet/ |access-date=12 November 2025 |publisher=Icelandair}}</ref><ref>{{Cite web |date= |title=Orders and Deliveries {{!}} Airbus |url=https://www.airbus.com/en/products-services/commercial-aircraft/orders-and-deliveries |access-date=2025-10-30 |website=www.airbus.com |language=en}}</ref>

{| class="wikitable" style="margin:0.5em auto; text-align:center"
|+ Icelandair fleet
|-
!rowspan=2|Aircraft
!rowspan=2|In service
!rowspan=2|Orders
!colspan=3|Passengers
!rowspan=2|Notes
|-
!<abbr title="Saga Class">J</abbr>
!<abbr title="Economy Class">Y</abbr>
!Total
|-
|[[Airbus A321LR]]
|4
|5
|22
|165
|187{{cn|date=October 2025}}
|Deliveries began in 2024.<br />Replacing [[Boeing 757|Boeing 757-200]] and [[Boeing 767|Boeing 767-300ER]].<ref name=":1">{{Cite web |title=Icelandair fékk fyrstu Airbus vélina |url=https://www.mbl.is/frettir/innlent/2024/12/02/icelandair_fekk_fyrstu_airbus_velina/ |access-date=2024-12-02 |website=www.mbl.is |language=is}}</ref>
|-
|[[Airbus A321XLR]]
|&mdash;
|13
|colspan=3|<abbr title="To be announced">TBA</abbr>
|Order with 12 options.<br />Deliveries begin in 2029.<br /> Replacing [[Boeing 757|Boeing 757-200]] and [[Boeing 767|Boeing 767-300ER]].<ref name="neos">{{Cite press release |title=Icelandair and Airbus finalize order for up to 25 Airbus A321XLR aircraft |date=6 July 2023 |url=https://www.globenewswire.com/news-release/2023/07/06/2700240/0/en/Icelandair-and-Airbus-finalize-order-for-up-to-25-Airbus-A321XLR-aircraft.html}}</ref>
|-
|[[Boeing 737 MAX 8]]
|17
|&mdash;
|16
|144
|160
|
|-
|[[Boeing 737 MAX 9]]
|4
|&mdash;
|16
|162
|178
|
|-
|rowspan="2"|[[Boeing 757-200]]
|rowspan="2"|6
|rowspan="2"|&mdash;
|22
|161
|183
|rowspan="2"|4 to be retired in 2025, remaining ones in 2026.<ref name=boeingretirement>[https://www.aerotelegraph.com/ticker/icelandair-flottet-boeing-767-frueher-aus-um-verluste-zu-stoppen/6h2ydxx aerotelegraph.com] (German) 24 October 2025</ref> <br> To be replaced by [[Airbus A321LR]] and [[Airbus A321XLR]].<ref>{{Cite web |url=https://www.airlinerwatch.com/2022/02/icelandair-to-retire-its-boeing-757.html|title=Icelandair to retire its Boeing 757 fleet by 2026|website=Airlinerwatch|date=7 February 2022}}</ref>
|-
|20
|164
|184<!--The 757-300 have been re-registered and are no longer wet-leased out as of April 2025, see https://www.ch-aviation.com/news/152901-icelandair-to-end-b757-300-operations-->
|-
|[[Boeing 767|Boeing 767-300ER]]
|3
|&mdash;
|25
|237
|262
|Retirement delayed to 2026.<ref name=boeingretirement/><ref name=767retirement/><br>To be replaced by [[Airbus A321neo|Airbus A321LR]] and [[Airbus A321neo|Airbus A321XLR]].<ref name="767retirement">{{cite web |date=23 October 2025 |title=Icelandair ending widebody operations |url=https://airlinegeeks.com/2025/10/23/icelandair-ending-widebody-operations/ |access-date=23 October 2025 |website=airlinegeeks}}</ref>
|-
|[[De Havilland Canada Dash 8|De Havilland Canada Dash 8-200]]
|3
|&mdash;
|&mdash;
|37
|37
|Transferred from [[Air Iceland Connect]]. <br>To be retired in 2026.<ref>{{Cite web |last=Adam |first=Darren |date=2025-03-04 |title=Icelandair to cease flights to Ísafjörður next year – RÚV.is |url=https://www.ruv.is/english/2025-03-04-icelandair-to-cease-flights-to-isafjordur-next-year-438017 |access-date=2025-03-12 |website=RÚV}}</ref>
|-
|[[De Havilland Canada Dash 8|De Havilland Canada Dash 8-400]]
|3
|&mdash;
|&mdash;
|76
|76
|Transferred from [[Air Iceland Connect]].
|-
!Total
!40
!18
!colspan=4|
|}
{{multiple image
| align             = center
| direction         = horizontal
| width             = 150
| image1            = Airbus A321-271NX (c-n 12359, TF-IAB) 2025-06-20 Andre Gerwing Collection ID 024045.jpg
| caption1          = [[Airbus A321LR]]
| image2            = Berlin Brandenburg Airport Icelandair Boeing 737-8 MAX TF-ICY (DSC07832).jpg
| caption2          = [[Boeing 737 MAX 8]]
| image3            = Boeing 737-9 MAX (cn 44361, TF-ICD) 2024-08-26 Andre Gerwing Collection ID 021659.jpg
| caption3          = [[Boeing 737 MAX 9]]
| image4            = Icelandair Boeing 757-200 Wedelstaedt.jpg
| caption4          = [[Boeing 757-200]]
| image5            = TF-ISW at LHR 20250728.jpg
| caption5          = [[Boeing 767-300ER]]
| alt1              = 
| image6            = Air Iceland (Flugfélag Íslands) TF-FXI De Havilland Canada DHC-8-400 Dash 8Q Reykjavik Airport (RKV BIRK) (52700443107).jpg
| caption6          = [[De Havilland Canada Dash 8|de Havilland Dash 8-Q400]]
}}

===Fleet development===
In 2005, the airline, on behalf of its parent company Icelandair Group, announced an order for ten [[Boeing 737 Next Generation|Boeing 737-800]] aircraft with options for five more.<ref>{{cite web|url=http://www.boeing.com/news/releases/2005/q1/nr_050126g.html |title=Boeing: Boeing, Flugleidir Icelandair Group Announce Order for 10 Boeing Next-Generation 737-800s |access-date=22 December 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120416010057/http://boeing.com/news/releases/2005/q1/nr_050126g.html |archive-date=16 April 2012 }}</ref> Those options were later exercised.<ref>{{cite web|url=http://www.mbl.is/vidskipti/frettir/2005/04/11/kaupa_fimm_nyjar_boeing_737_800_flugvelar_til_vidbo/|title=Kaupa fimm nýjar Boeing 737–800 flugvélar til viðbótar|access-date=24 April 2015}}</ref> These were not placed into service by the airline but leased to other airlines.<ref>{{cite news|url=http://www.mbl.is/frettir/innlent/2005/05/18/fl_group_leigir_air_china_fimm_boeing_velar/|title=FL Group leigir Air China fimm Boeing-velar |trans-title=FL Group leases Boeing aircraft to Air China |language=is |website=mbl.is |access-date=24 April 2015}}</ref> During that same year, Icelandair announced an order for two [[Boeing 787 Dreamliner]] aircraft.<ref name="boeing2005">{{cite web|title=Boeing: Icelandair Orders Two Boeing 787 Dreamliners|url=http://www.boeing.com/news/releases/2005/q1/nr_050225g.html|publisher=Boeing|date=25 February 2005|access-date=12 August 2012|url-status=dead|archive-url=https://web.archive.org/web/20120628111721/http://www.boeing.com/news/releases/2005/q1/nr_050225g.html|archive-date=28 June 2012}}</ref> In 2006, Icelandair announced an order for two more Boeing 787 aircraft.<ref>{{cite web|url=http://www.boeing.com/news/releases/2006/q2/060405d_nr.html |title=Boeing: Icelandair Orders Two Additional Boeing 787s |access-date=22 December 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120316133621/http://www.boeing.com/news/releases/2006/q2/060405d_nr.html |archive-date=16 March 2012 }}</ref><ref name="reuters1">{{cite news |title=UPDATE 1-Icelandair Says No Plans To Cancel Boeing Orders|url=https://www.reuters.com/article/icelandair-orders-idUSLQ57344520090326|publisher=Reuters Online |date=26 March 2009|access-date=12 August 2012}}</ref> In 2011, it was announced that orders for three of the 787s had been cancelled.<ref name="flightglobal1">{{cite web |title=Icelandair To Transfer Purchase Rights on Three 787s to Norwegian|url=http://www.flightglobal.com/news/articles/icelandair-to-transfer-purchase-rights-on-three-787s-to-norwegian-357234/|website=Flightglobal |date=26 May 2011|access-date=25 February 2015}}</ref>

On 13 February 2013, Icelandair Group announced that the company had finalized an order with Boeing for 16 new [[Boeing 737 MAX]] aircraft.<ref>{{cite web|url=http://visir.is/icelandair-gengur-fra-kaupum-a-sextan-737-max-flugvelum-fra-boeing/article/2013130219620|title=Vísir – Icelandair gengur frá kaupum á sextán 737 MAX flugvélum frá Boeing|work=visir.is|date=13 February 2013 |access-date=24 April 2015}}</ref> Purchase rights for eight additional 737 aircraft were also signed. The value for all 16 aircraft was US$1.6&nbsp;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 8 aircraft configured for 153 passengers, and seven 737 MAX 9 aircraft to hold 172 passengers. Icelandair Group's current Boeing 757-200 aircraft hold 183 passengers.<ref>{{cite web|url=https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=541541&messageId=667110|title=Icelandair Group and Boeing finalize orders for 737 MAX|access-date=20 July 2016}}</ref>

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

On 22 January 2020, Icelandair announced that the airline would lease three [[Boeing 737-800]] airliners to enter service in spring 2020.<ref>{{cite web|url=https://www.icelandair.com/en-gb/blog/statement-boeing-max-operations/|access-date=11 February 2020|title=Icelandair Statement on Boeing 737 MAX Operations}}</ref> The aircraft were to be [[dry lease]]d and flown by Icelandair pilots.{{citation needed|date=June 2024}} However, this never took place.

On 12 August 2020, Icelandair reached a settlement with [[Boeing]] over the MAX groundings. The settlement included reducing the carrier's order for future MAX aircraft by four.<ref>{{Cite web|last=Will|first=Luke|date=12 August 2020|title=Icelandair Received Settlement and Cuts MAX Orders|url=https://travelradar.aero/icelandair-receives-settlement-and-cuts-737-max-orders/19385/|access-date=13 August 2020|website=Travel Radar}}</ref>

On 7 April 2023, Icelandair announced that the airline had signed an [[Memorandum of understanding|MOU]] for an order of up to 25 [[Airbus A320neo family#A321XLR|A321XLR]] aircraft: 13 firm orders with 12 further options. At the same time, it was also announced that negotiations were underway to lease four [[Airbus A320neo family#A321LRs|A321LRs]]. These will replace its ageing [[Boeing 757]] fleet.<ref>{{cite press release |title=Icelandair and Airbus sign a Memorandum of Understanding for the purchase of up to 25 Airbus A321XLR aircraft |url=https://www.globenewswire.com/news-release/2023/04/07/2643063/0/en/Icelandair-and-Airbus-sign-a-Memorandum-of-Understanding-for-the-purchase-of-up-to-25-Airbus-A321XLR-aircraft.html |access-date=7 April 2023 |website=Globe News Wire (link from Icelandair newsroom)|date=7 April 2023 }}</ref> This will be the first-ever Airbus order for the Icelandic flag carrier. The first Airbus A321LR was delivered on 2 December 2024.<ref name=":1" />

In December 2024, Icelandair's two Boeing 757-300 aircraft were wet-leased to Fly Khiva of [[Uzbekistan]].<ref name=":2">{{Cite web |last=uz |first=Daryo |title=Uzbekistan's Fly Khiva expands operations with arrival of its first passenger Boeing 757–300 |url=https://daryo.uz/en/2024/12/04/uzbekistans-fly-khiva-expands-operations-with-arrival-of-its-first-passenger-boeing-757-300 |access-date=2024-12-04 |website=Daryo.uz |language=en}}</ref>

On 29 April 2025, Icelandair announced that the airline would retire their [[Boeing 767-300ER]] by autumn 2029.<ref>{{Cite web |date=April 30, 2025 |title=Q1 2025 results |url=https://storage.mfn.se/e1a6a07c-47d6-461b-86e3-f45a1a7b6742/q1-2025-market.pdf |access-date=April 30, 2025 |website=Icelandair}}</ref> However, in October 2025, it was announced that the retirement date for the Boeing 767 will now be in 2026, three years earlier than scheduled. <ref>{{Cite web |date=2025-10-23 |title=Icelandair Ending Widebody Operations {{!}} AirlineGeeks.com |url=https://airlinegeeks.com/2025/10/23/icelandair-ending-widebody-operations/ |access-date=2025-10-24 |website=airlinegeeks.com |language=en-US}}</ref>

===Special liveries===
As of October 2025, Icelandair no longer operates any special livery aircraft due to the retirement of Hekla Aurora in October 2025. The final livery that flew, Hekla Aurora, highlights the [[Aurora Borealis]] (Northern Lights), also part of Icelandair's #IcelandStopover campaign. This aircraft was retired on 12 October 2025, but flew multiple sightseeing flights, as well as multiple commercial flights just before its official retirement. It flew its final flight between CPH and KEF on 14 October 2025.

Vatnajokull (A Boeing 757-200 TF-FIR) was painted in a special "80 years" livery, depicting the Vatna glacier, this aircraft flew her final revenue flight between LHR and KEF on September 21st 2025.

A third aircraft (Boeing 757-300 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.

{| class="wikitable" style="border-collapse:collapse;text-align:center;margin:auto;"
|+ Icelandair special liveries
|-
!Registration 
!Livery 
!Aircraft 
!Refs 
|-
|TF-FIU
|Hekla Aurora
|[[Boeing 757|Boeing 757-200]]
|<ref name="auto"/>
|-
|TF-FIR
|Vatnajökull
|[[Boeing 757|Boeing 757-200]]
|<ref>{{cite web|url=https://www.icelandair.com/about/our-fleet/vatnajokull/|title=Vatnajökull|publisher=Icelandair|access-date=8 September 2018}}</ref>
|-
|TF-ISX
|100 years of Independence 
|[[Boeing 757|Boeing 757-300]]
|<ref>{{Cite web |last=Flightradar24 |title=Live Flight Tracker – Real-Time Flight Tracker Map |url=https://www.flightradar24.com/ICE216/38042305 |access-date=2024-11-17 |website=Flightradar24 |language=en}}</ref>
|}
{{multiple image
| align             = center
| direction         = horizontal
| width             = 175
| image1            = Icelandair (Aurora Borealis livery) Boeing 757-256 (TF-FIU) taking off from Manchester Airport.jpg
| caption1          = TF-FIU in ''Hekla Aurora'' livery
| image2            = TF-ISX JFK Landing 22L FI B757 3E7 Þingvellir 100 Years Icelandic Independence Small (52219259669).png
| caption2          = TF-ISX in ''100 Years of Icelandic National Sovereignty'' livery
| image3            = Tf-fir (43142388032).jpg
| caption3          = TF-FIR in ''80 Years of Aviation'' livery
}}

===Historical fleet===
Over the years, Icelandair operated the following aircraft types:<ref>{{cite web|url=http://www.aerotransport.org/|title=AeroTransport Data Bank|publisher=Aerotransport.org|access-date=7 October 2012}}</ref><ref>{{cite web|url=http://aerobernie.bplaced.net/Icelandair.html|title=Flugfelag/Icelandair fleet|website=aerobernie.bplaced.net|access-date=20 February 2021}}</ref><ref>{{cite web|url=http://aerobernie.bplaced.net/Loftleidir.html|title=Lofttleidir fleet|website=aerobernie.bplaced.net|access-date=20 February 2021}}</ref>

{| class="wikitable sortable" style="margin:0.5em auto;"
|+ Icelandair historical fleet
|-
!Aircraft
!Total
!Introduced
!Retired
!class="unsortable"|Notes
|-
|[[Airbus A319-100]]
|1
|2019
|2019
|Leased from [[GetJet Airlines]].
|-
|[[Avro Anson]]
|2
|1944
|{{unknown}}
|Transferred from [[Loftleiðir]].
|-
|[[Beechcraft Model 18]]
|2
|1942
|1948
|Originally [[Icelandair#Flugfélag Íslands in the early decades|Flugfélag Íslands]].
|-
|[[Boeing 727-100C]]
|3
|1967
|1989
|Originally [[Icelandair#Flugfélag Íslands in the early decades|Flugfélag Íslands]].
|-
|[[Boeing 727-200]]
|2
|1980
|1990
|
|-
|[[Boeing 737-300]]
|3
|1991
|2004
|
|-
|[[Boeing 737-400]]
|5
|1989
|2001
|
|-
|rowspan=2|[[Boeing 747-100]]
|rowspan=2|1
|1982
|1982
|rowspan=2|Leased from [[Scandinavian Airlines|SAS]].{{Citation needed|date=September 2024}}
|-
|1984
|1984
|-
|[[Boeing 757-300]]
|2
|2002
|2025
|Sold to [[Fly Khiva]] in April 2025.<ref>[https://www.ch-aviation.com/news/152901-icelandair-to-end-b757-300-operations ch-aviation.com – Icelandair to end B757-300 operations] 28 April 2025</ref>
|-
|[[Canadair CL-44]]
|5
|1964
|1979
|Transferred from [[Loftleiðir]].
|-
|[[Consolidated PBY Catalina]]
|5
|1944
|1960
|Originally [[Icelandair#Flugfélag Íslands in the early decades|Flugfélag Íslands]].
|-
|[[De Havilland Dragon Rapide]]
|2
|1945
|1955
|Originally [[Icelandair#Flugfélag Íslands in the early decades|Flugfélag Íslands]].
|-
|[[De Havilland Canada DHC-6 Twin Otter]]
|1
|1981
|2007
|
|-
|rowspan=2|[[Douglas C-47 Skytrain]]
|10
|1946
|1970
|Originally [[Icelandair#Flugfélag Íslands in the early decades|Flugfélag Íslands]].
|-
|1
|2005
|2015
|Operated by the Flugfarid Museum.
|-
|[[Douglas C-54 Skymaster]]
|11
|1947
|1967
|Originally [[Icelandair#Flugfélag Íslands in the early decades|Flugfélag Íslands]].
|-
|[[Douglas DC-6B]]
|7
|1959
|1975
|
|-
|[[Douglas DC-8|Douglas DC-8-33]]
|1
|1977
|1978
|
|-
|[[Douglas DC-8|Douglas DC-8-55]]
|1
|1986
|1988
|Transferred from [[Loftleiðir]].
|-
|[[Douglas DC-8|Douglas DC-8-55CF]]
|1
|1971
|1973
|Leased from [[Seaboard World Airlines]].
|-
|[[Douglas DC-8|Douglas DC-8-61CF]]
|3
|1973
|1975
|Leased from [[Seaboard World Airlines]].
|-
|[[Douglas DC-8|Douglas DC-8-63]]
|15
|1981
|1990
|Transferred from [[Loftleiðir]].
|-
|[[Douglas DC-8|Douglas DC-8-63CF]]
|7
|1979
|1985
|
|-
|[[Douglas DC-8|Douglas DC-8-63PF]]
|1
|1982
|1982
|Leased from [[Scandinavian Airlines|SAS]].
|-
|[[Douglas DC-8|Douglas DC-8-71]]
|1
|1983
|1985
|
|-
|[[Fokker F27 Friendship]]
|14
|1965
|1992
|Domestic/[[Faroe Islands|Faroe]]/[[Greenland]] service.
|-
|[[Fokker 50]]
|4
|1992
|2015
|Domestic/[[Faroe Islands|Faroe]]/[[Greenland]] service.
|-
|[[Grumman G-21 Goose]]
|7
|1946
|1967
|Transferred from [[Loftleiðir]].
|-
|[[Lockheed L-749 Constellation]]
|1
|1960
|1960
|Leased from Miami Airlines.
|-
|[[McDonnell Douglas DC-10-30CF]]
|1
|1979
|1980
|Leased from [[Seaboard World Airlines]].
|-
|[[Noorduyn Norseman]]
|2
|1945
|1946
|Transferred from [[Loftleiðir]] and written off.
|-
|[[Stinson Reliant]]
|2
|1944
|1952
|Originally [[Loftleiðir]].
|-
|[[Vickers Viscount|Vickers Viscount 700D]]
|2
|1957
|1970
|Originally [[Icelandair#Flugfélag Íslands in the early decades|Flugfélag Íslands]].
|-
|[[Waco S series|WACO YKS-7]]
|2
|1938
|1943
|Both were written off.
|}

==Icelandair Cargo==
===Overview===
<!-- linked from redirect [[Icelandair Cargo]] -->
[[File:TF-ISH JFK Taxiing In FI B767 304 ER BCF Small (52700559960).png|right|thumb|Icelandair Cargo [[Boeing 767-300F|Boeing 767-300BCF]]]]

Icelandair Cargo is a sister airline of 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.<ref>{{cite web|url=http://www.icelandaircargo.com/about-us/history/ |title=About Us: History |website=icelandaircargo.com |publisher=Icelandair Cargo |access-date=29 December 2016}}</ref>

In 2021, Icelandair Cargo announced [[Boeing 767-300ER]] passenger aircraft would be converted to freighters.<ref>{{Cite web|title=Icelandair Cargo takes two new cargo planes into operation|url=https://www.icelandaircargo.com/about-us/news/detail/item1275060/icelandair_cargo_takes_two_new_cargo_planes_into_operation/|access-date=2021-03-16|website=www.icelandaircargo.com}}</ref> 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 the United States.<ref>[https://payloadasia.com/2022/12/icelandair-expands-at-liege-with-new-767-300bcf/ payloadasia.com – Icelandair expands at Liege with new 767-300BCF] 29 December 2022</ref>

In [[May 2025]] Icelandair Cargo has signed an [[interline agreement]] with [[Uzbekistan]]-based [[My Freighter Airlines]] to open up opportunities for cargo transportation between Central Asia, Europe and North America.<ref>{{cite news |last1=Jeffrey |first1=Rebecca |title=My Freighter signs interline agreement with Icelandair Cargo |url=https://www.aircargonews.net/freighter-operators/my-freighter-signs-interline-agreement-with-icelandair-cargo/1080160.article |access-date=1 June 2025 |work=Air Cargo News |date=23 May 2025 |language=en}}</ref>

===Fleet===
{{As of|2024|4}}, the Icelandair Cargo fleet consists of the following aircraft:<ref name=register>{{cite web|url=http://www.icetra.is/aviation/aircraft/register/#q=icelandair&col= |title=Aircraft Registry Lookup |publisher=Icelandic Transport Authority |access-date=12 October 2019}}</ref><ref>{{cite web|url=http://www.icelandaircargo.com/information/freighters/the-fleet/ |title=Freighter aircraft – the fleet |website=icelandaircargo.com |publisher=Icelandair Cargo |access-date=29 December 2016}}</ref>

{| class="wikitable" style="border-collapse:collapse;text-align:center;margin:auto;"
|+ Icelandair Cargo fleet
|-
! Aircraft
! In service
! Orders
! Notes
|-
|[[Boeing 767-300F|Boeing 767-300BCF]]
|2
|&mdash;
|<ref>{{cite web|url=https://www.ch-aviation.com/portal/news/123208-icelandair-debuts-b767-freighter-to-take-another-by-2q23|title=Icelandair debuts B767 freighter, to take another by 2Q23|website=icelandaircargo.com |publisher=Ch-Aviation|access-date=5 January 2023}}</ref>
|-
!Total
!2
!&mdash;
!
|}

== Sponsorships ==

Icelandair and the City of Reykjavík are two of the main sponsors of the [[Iceland Airwaves]], an annual music festival held in Reykjavík on the first weekend in November.<ref>{{cite web|url=http://icelandairwaves.is/|title=Iceland Airwaves|access-date=24 April 2015}}</ref>

== Accidents and incidents ==
*29 May 1947 {{ndash}} A Flugfélag Islands Douglas DC-3 ([[aircraft registration|registered]] as TF-ISI) [[1947 Héðinsfjörður air crash|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.<ref>{{cite web|url=http://aviation-safety.net/database/record.php?id=19470529-2 |title=ASN Aircraft accident Douglas C-47A-25-DK TF-ISI Hjedinsfjordur |publisher=Aviation-safety.net |access-date=7 October 2012}}</ref>
*7 March 1948 {{ndash}} An [[Avro Anson|Avro 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.<ref>{{Cite web|url=http://timarit.is/view_page_init.jsp?issId=107476&pageId=1266934&lang=is&q=Sk%25E1lafell|title=Timarit.is|last=Háskólabókasafn|first=Landsbókasafn Íslands -|website=timarit.is|language=is|access-date=1 November 2016}}</ref>
*31 January 1951 {{ndash}} 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 near [[Hafnarfjörður]] in what became known as the [[1951 Glitfaxi air crash|Glitfaxi air crash]]. The pilots were attempting to land the aircraft at Reykjavík Airport in heavy snowfalls following a flight from [[Vestmannaeyjar]] when radar contact was lost.<ref>{{cite web|url=http://aviation-safety.net/database/record.php?id=19510131-1 |title=ASN Aircraft accident Douglas C-47A-10-DK TF-ISG Hafnarfjördur |publisher=Aviation-safety.net |access-date=7 October 2012}}</ref>
*14 April 1963 {{ndash}} A [[Vickers Viscount]] (registered TF-ISU) crashed on approach to [[Oslo Airport, Fornebu|Oslo-Fornebu Airport]]. All 12 people on board were killed.<ref name=ASN140463>{{cite web|url=http://aviation-safety.net/database/record.php?id=19630414-0 |title=Accident description |website=Aviation Safety Network |access-date=6 October 2009}}</ref>
*26 September 1970 {{ndash}} A Flugfélag [[Fokker F27 Friendship]] (registered TF-FIL) crashed into a mountain near [[Vágar]], Faroe Islands while approaching [[Vágar Airport]] following a scheduled passenger flight from [[Bergen]], in what is known as [[controlled flight into terrain]]. Of the 34 people on board, seven passengers and one crew member were killed.<ref>{{cite web|url=http://aviation-safety.net/database/record.php?id=19700926-0 |title=ASN Aircraft accident Fokker F-27 Friendship 300 TF-FIL Vagar, Faroe Islands |publisher=Aviation-safety.net |access-date=7 October 2012}}</ref>
*15 November 1978 {{ndash}} [[Loftleiðir Flight 001]], a Douglas DC-8 (registered TF-FLA), operating for [[Garuda Indonesia]], missed the runway upon approach of [[Bandaranaike International Airport|Colombo Airport]] in Sri Lanka during a chartered [[Hajj]] pilgrimage flight from [[Jeddah]] and crashed. 181 passengers died in the accident, while 74 passengers and 5 crew members survived.<ref>{{cite web|url=http://www.caa.lk/pdf/accident_reports/Icelandic_Airways_aircraft_TF-FLA.pdf|title=Welcome to Civil Aviation Authority|website=www.caa.lk|access-date=2011-11-11|archive-url=https://web.archive.org/web/20131109164855/http://www.caa.lk/pdf/accident_reports/Icelandic_Airways_aircraft_TF-FLA.pdf|archive-date=2013-11-09|url-status=dead}}</ref><ref>{{cite web|url=http://www.airdisaster.com/features/top100/top100.shtml |title=AirDisaster.Com: Features: Top 100 Disasters |access-date=2012-10-07 |url-status=usurped |archive-url=https://web.archive.org/web/20120828194552/http://www.airdisaster.com/features/top100/top100.shtml |archive-date=2012-08-28 }}</ref>
*22 January 2002 {{ndash}} The crew of Icelandair Flight 315, a [[Boeing 757|Boeing 757-200]] registered TF-FIO with 75 passengers on board, unintentionally entered a series of extreme manoeuvres during a [[go-around]] from a low altitude following an unstabilised [[Final approach (aeronautics)|approach]] into [[Oslo Airport, Gardermoen]]. During the incident the aircraft was subjected to [[Load factor (aeronautics)|load factors]] over the design limits, culminating in a dive followed by a +3.59 [[g-force|g]] pull-up manoeuvre clearing the ground by only 321 ft. The speed limit for the [[Flap (aircraft)|flap]] 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 manufacturer [[Boeing]] recommended further maintenance work after having evaluated the readings from the [[flight data recorder]]. The [[Accident 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.<ref>{{cite web |date=22 January 2002 |title=2003/07 &#124; aibn |url=http://www.aibn.no/aviation/reports/2003-07?ref=1713 |access-date=7 October 2012 |publisher=Aibn.no}}</ref>
*7 February 2020 {{ndash}}  Icelandair Flight 529, a [[Boeing 757|Boeing 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.<ref>{{cite web|url=https://aviation-safety.net/database/record.php?id=20200207-0|title=ASN Aircraft accident Boeing 757–256 (WL) TF-FIA Keflavík International Airport (KEF)|date=7 February 2020 |access-date=9 February 2020}}</ref>

== References ==
{{Reflist}}

== External links ==
{{Commons category}}
* {{Official website}}


{{Portal bar|Iceland|Aviation|Companies}}
{{Airlines of Iceland}}
{{Icelandair Group}}
{{A4E}}
{{IATA members|europe}}
{{Association of European Airlines}}
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[[Category:Icelandair| ]]
[[Category:Airlines of Iceland]]
[[Category:Airlines established in 1937]]
[[Category:Airlines for Europe]]
[[Category:Companies based in Reykjavík]]
[[Category:1937 establishments in Iceland]]
[[Category:Icelandic brands]]