ORDER - Icelandair signs lease agreements for six Airbus A320neo aircraft

 

Icelandair has signed lease agreements with aircraft lessor Aircastle for six Airbus A320neo aircraft, which will enter service before summer 2028. This is in addition to the recently announced four aircraft of the same type from lessor AviLease, which will enter the fleet in spring 2027. The ten Pratt & Whitney powered aircraft are manufactured between 2018-2020.

The Company currently operates seven Airbus aircraft. In addition, three new Airbus A321LR’s are scheduled for delivery later this year. Once these ten A320neo aircraft have been added, Icelandair’s Airbus fleet will consist of 20 aircraft.

The introduction of these aircraft is part of Icelandair’s extensive fleet renewal program. Over the past decade, the Company has invested in a new generation of more fuel-efficient Boeing 737 MAX and Airbus A320 family aircraft. At the same time, Icelandair has accelerated the retirement of its Boeing 757 and 767 fleet and plans to cease operating these aircraft in passenger service from January 2027.

Bogi Nils Bogason, President and CEO of Icelandair:

"We continue to invest in our extensive fleet renewal and are pleased to begin this new partnership with Aircastle and AviLease. Next year, we will reach the important milestone of operating our entire passenger network with new-generation aircraft that consume up to 30% less fuel per seat. Our fleet renewal also supports our ambitions to strengthen our route network, simplify the fleet, and continue to provide customers with outstanding service and great travel experience."

Icelandair / Image: Flyingphotos AI

Icelandair expects to increase its A321LR fleet from six to nine by summer 2027

One A320 will be delivered in May 2026 as one A321LR is delayed until fall 2026. 

The carrier is working on securing aircraft for 2027-28 as B757 and B767 phase out may be sped up due to market unrest — with both potentially exiting in late 2026.

Aviator / Photo: Ton Jochems - AMS

AIRLINE - Icelandair mulls buying 49% of PLAY Europe's Maltese AOC

Photo: Icelandair - A321LR

Icelandair (FI, Reykjavik Keflavik) has initiated discussions with the current owners of PLAY Europe (FPE, Malta International), a still active Maltese air operator's certificate left idle following the collapse of its erstwhile parent, PLAY (Iceland), concerning a potential acquisition of a 49% share.

"Having access to an air operator certificate in Malta in addition to the Icelandic one can open up new and exciting business opportunities and at the same time simplify our operations in Iceland and increase efficiency," president and chief executive officer Bogi Nils Bogason said.

The airline underlined that the discussions are preliminary and the terms of the potential acquisition are yet to be finalised.

However, explaining the rationale, Icelandair said that it was evaluating using the Maltese AOC to split its core fleet dedicated to scheduled operations out of Reykjavik Keflavik, and other aircraft currently operating charters or ACMI flights. "Acquiring a share in the company would open up new opportunities for Icelandair, for example, in charter services, as the Maltese company has access to more extensive air service agreements and double taxation treaties. At the same time, it would create opportunities to separate the company’s fleet operations," the airline said.

Bogason pointed out that having more than one AOC was "common" in Europe, and would increase Icelandair's flexibility and competitiveness.

Icelandair currently only has the Icelandic AOC.

PLAY used to compete with Icelandair as a low-cost carrier with a hub at Keflavik. While originally set up with the Icelandic AOC, it launched PLAY Europe in 2025 to lower the cost of its ACMI-out business. It later proposed closing the Icelandic AOC altogether to focus on ACMI and charter business with the Maltese certificate. This change never went through before PLAY ceased operations at the end of September 2025, buckling under the weight of sustained losses.

While PLAY's Icelandic AOC is no longer active, the Maltese one is. Three dry leased A320-200Ns remain registered in Iceland to the company, after the local regulator blocked their deregistration pending the settlement of all debts. The Maltese unit no longer has any aircraft.

Fly Play Europe, trading as PLAY Europe, is wholly owned by FPEHM Ltd., a Maltese company incorporated in January 2026. This firm is, in turn, wholly owned by Icelandic company Fly Play Europe Holdco. The Icelandic business register shows the beneficial owner of the firm is the CEO of PLAY, Einar Orn Olafsson.

 

FLEET - Icelandair to retire its Boeing 767 by the end of 2026

Carrier accelerates widebody phase-out amid drive for profitability. The Boeing 757 will also be retired from service

Icelandair will end all B767 and B757 operations by the end of 2026, bringing forward the retirement of its fleet of three Boeing 767-300s as part of a restructuring plan.

Icelandair Fleet Evolution

Icelandair now plans to retire three Boeing 757s and one 767 by the end of this year and four 757s and two 767s in 2026.

By mid-2026, the airline expects to operate 41 aircraft, including 21 Boeing 737 MAX jets and seven Airbus A321LRs.

 Photo: Ton Jochems

ROUTES - Icelandair celebrates inaugural flight to Miami

Icelandair has started scheduled service to Miami, Florida, marking an exciting milestone in the airline’s route network. Icelandair will operate three weekly flights to Miami—on Tuesdays, Thursdays, and Saturdays—until 2 May 2026. The route is served by the airline’s new Airbus A321LR aircraft, with a flight time of approximately eight hours.

Miami becomes Icelandair’s 19th destination in North America and the second in Florida, complementing the long-standing Orlando service. The city is renowned for its beautiful beaches, vibrant culture, and lively nightlife.

Bogi Nils Bogason, Icelandair President and CEO:

“We are delighted to launch flights to Miami and offer our passengers a new and exciting destination in Florida. Our new Airbus A321LR aircraft enable us to add exciting new destinations, and Miami is a perfect example. This route also creates convenient connections for travelers from Miami to our 38 destinations in Europe via Iceland—and vice versa.”

ICELANDAIR

ROUTES - Icelandair Adds Faro to Its Network and Expands Service to Southern Europe

Icelandair is adding Faro, Portugal to its route network, with flights starting on March 26. Faro is the capital of the Algarve region and the southernmost city in Portugal. Algarve is renowned for its beautiful beaches, golf courses, and rich cultural heritage.

Initially, flights will operate twice weekly, on Mondays and Fridays until May 11, and from May 16, flights will operate once a week, on Saturdays. Icelandair VITA has previously offered vacation packages to Faro, but with this change, the selection will increase, especially with exciting golf trips.

In addition to adding Faro to its route network, Icelandair has increased frequency to popular destinations in Southern Europe, including Tenerife, Las Palmas, Alicante, and Barcelona. Service has also been expanded to key European cities such as Copenhagen and Paris.

Bogi Nils Bogason, CEO of Icelandair:

“We are seeing strong demand for destinations in Southern Europe and want to ensure that Icelandic travelers and international guests have diverse and convenient connections. Faro is an exciting destination that many Icelanders are familiar with, and we are pleased to offer flights there starting next spring. With this addition and increased frequency to other popular destinations, we are strengthening our network and further increasing our offering to sunny destinations.”

 

SPECIAL LIVERY - ICELANDAIR / B757-200W / TF-FIC - New "Abercrombie & Kent" titles

Rui Silva
 

FLEET - Icelandair: Icelandair Announces Lease Agreements for Two New Airbus A321LR Aircraft

Icelandair is pleased to announce lease agreements with the lessor CALC, for two brand-new A321LR aircraft. This marks the beginning of a new partnership between Icelandair and CALC, based on a shared vision and long-term collaboration. The aircraft will be delivered directly from Airbus in the winter season of 2026/2027 and will join Icelandair’s growing fleet of Airbus A321LRs, which are gradually replacing the Boeing 757s. The A321LR offers extended range, improved fuel efficiency, and reduced emissions compared to the 757s, aligning with Icelandair’s sustainability goals, as well as enhancing passenger comfort with Airbus’ award-winning Airspace cabin design.

Bogi Nils Bogason, CEO of Icelandair:
“We are excited to welcome CALC as a new partner in our fleet development journey. The addition of these two Airbus A321LR aircraft supports our strategy to modernize our fleet with new, more efficient aircraft. Furthermore, it reflects our commitment to delivering an exceptional travel experience while strengthening our route network.”

 

Icelandair operated a Boeing 757-23N aircraft in Pan Am livery as part of the "Tracing the Transatlantic" initiative, recreating historic Pan Am routes. The aircraft, named "Yankee Clipper II", flew from the US to Europe, with stops in Lisbon and Shannon, among other locations.

Photos: Daniel Carneiro - Lisboa
 

ROUTES - ICELANDAIR TENTATIVELY EXPANDS BALTIMORE/WASHINGTON FLIGHTS IN 2Q26

TF-ICN B737-MAX8 Icelandair (sky blue)
Photo: Ton Jochems

Icelandair since last week gradually files preliminary schedule listing for Northern summer 2026 season, on/after 28MAR26. In the OAG, schedule filing is listed until 07MAY26 inclusive.

Notable preliminary increase is additional flights on Reykjavik Keflavik – Baltimore/Washington route, where the airline schedules increase from 7 to 11 weekly flights from 28MAR26, 10 from 16APR26.


Additional changes to be filed in the next few months.


FI643 KEF1700 – 1925BWI 7M9 D
FI641 KEF2005 – 2230BWI 7M8 467

FI642 BWI2030 – 0625+1KEF 7M9 D
FI640 BWI2335 – 0925+1KEF 7M8 467

In addition, the airline’s Reykjavik Keflavik – Miami route is now listed beyond 28FEB26, where it continues to serve 3 weekly flights. On 31MAR26 and 07APR26 from Iceland, service tentatively listed with 757-200, instead of A321neo.


FI691 KEF1715 – 2155MIA 32Q 246
FI690 MIA1815 – 0555+1KEF 32Q 357

 

FLEET - FLEET - Icelandair will receive two more A321LRs by summer 2025, and three in 2026.

Deliveries of 13 A321XLRs will begin in 2029

Photo: Ton Jochems - AMS

ROUTES - ICELANDAIR EXPANDS A321NEO LR NORTH AMERICA NETWORK IN NW25

Icelandair in Northern winter 2025/26 season intends to expand Airbus A321neo LR operations, as schedule listing in the OAG has been extended to early-February 2026, as of 05JAN25.

On North America routes, planned A321neo LR service addition in North America includes the following.

Reykjavik Keflavik – Miami eff 06JAN26 3 weekly*

Reykjavik Keflavik – Newark eff 06JAN26 1 daily

Reykjavik Keflavik – New York JFK eff 05JAN26 1 daily

Reykjavik Keflavik – Orlando 19DEC25, 03JAN26

Reykjavik Keflavik – Portland OR 26OCT25 – 04JAN25 4 weekly


The A321neo is scheduled to serve following North American routes during summer 2025 season:

Reykjavik Keflavik – Seattle First flight 30APR25, instead of 07MAY25

Reykjavik Keflavik – Toronto Service revised to 14SEP25 – 24OCT25, instead of 01MAY25


* Miami will be the airline’s new destination in the US, with overall 3 weekly flights with following schedule.

FI691 KEF1715 – 2055MIA 32Q 246

FI690 MIA1715 – 0555+1KEF 32Q 357
Photo: ICELANDAIR

SPECIAL LIVERY - Icelandair Captain's Choice Livery 757-256 "Herðubreið" (TF-FIA) flying a 2024 National Geographic Private Jet Tour on final

Photo: KC Wong - LAX

FLEET - Icelandair becomes Airbus operator with the A321LR

Hamburg, Germany, 3 December 2024 – Icelandair, based in Keflavik, has Share taken delivery of its first Airbus aircraft.

The A321LR marks the first step in the airlineʼs fleet renewal making it the newest Airbus operator.

The aircraft is the first of four to be leased from SMBC Aviation Capital Limited.

The airline will also take delivery of 13 A321XLRs.

Powered by Pratt & Whitney GTF engines, Icelandairʼs A321LR comprises 187 seats in a two-class configuration (22 Business and 165 Economy Class seats).

The aircraftʼs Airspace cabin features XL bins, providing 60% more stowage space compared to previous generation aircraft for a more relaxed boarding experience for passengers and cabin crew alike.

In addition, Icelandair passengers will benefit from advanced gate to gate connectivity, next generation inflight entertainment and the latest lighting system enhancing well-being and the overall passenger experience on board.

The A321LR is ideally suited to transatlantic routes, providing extended range with an aircraft capable of flying routes up to 4,000 nautical miles.

The A321LRʼs cutting-edge technology and advanced fuel efficiency delivers at least 20% fuel savings and CO₂ reduction compared to previous generation single-aisle aircraft. In addition, as with all Airbus aircraft, the A321neo aircraft is already able to operate with up to 50% Sustainable Aviation Fuel (SAF), increasing to up to 100% SAF capability by 2030.

Icelandairʼs A321LR aircraft will support the airline's sustainability efforts, in regard to operational efficiency while significantly reducing CO₂ emissions.

To date more than 6,700 A321neo have been ordered by more than 90 customers across the globe.

 

ROUTES - ICELANDAIR OUTLINES A321NEO LR NETWORK FROM DEC 2024

Icelandair’s planned Airbus A321neo LR aircraft operation. At time the post went to press, AeroRoutes excluded selected routes due to end of schedule listing in the GDS involving Northern winter 2025/26 season from 26OCT25.

Latest summary of the carrier’s 187-seater (C22Y165) between December 2024 and December 2025 as follows, with information in underlined representing additional information previously not reported or specified in details on 07NOV24. Note selected routes will not see A321neo operation during selected periods or scheduled on selected dates only.

The carrier’s future A321neo LR operations remain subject to change.

Reykjavik Keflavik – Amsterdam One-time flight on 05JAN25, 2 weekly from 31OCT25

Reykjavik Keflavik – Barcelona First flight 02JUN25 (until 30AUG25)

Reykjavik Keflavik – Berlin First flight 01JUN25 (until 31AUG25)

Reykjavik Keflavik – Brussels 28MAY25 – 31MAY25 (followed by service from 01SEP25 – 24OCT25)

Reykjavik Keflavik – Copenhagen First flight 10DEC24 (A321neo LR operates 1 daily round-trip year round, 2 weekly from 27OCT25)

Reykjavik Keflavik – Dublin First flight 02FEB25 (until 25MAY25)

Reykjavik Keflavik – Frankfurt First flight 02NOV25 (1 weekly)

Reykjavik Keflavik – Glasgow First flight 30MAR25 (until 26OCT25)
Reykjavik Keflavik – London Heathrow First flight 23DEC24 (year-round A321neo LR service)

Reykjavik Keflavik – Manchester First flight 01APR25 (various dates in April 2025 until 18APR25)

Reykjavik Keflavik – Munich First flight 02MAY25 (Selected dates until 07MAY25, and selected dates 06SEP25 – 14SEP25)

Reykjavik Keflavik – Oslo First flight 24DEC24 (until 26OCT25)

Reykjavik Keflavik – Paris Charles de Gaulle First flight 02JUN25 (until 30AUG25)

Reykjavik Keflavik – Portland OR First flight 26OCT25 (A321neo LR-only service)

Reykjavik Keflavik – Rome Fiumicino First flight 01JUN25 (until 12SEP25)

Reykjavik Keflavik – Seattle First flight 07MAY25 (All flights operated by A321neo LR 01JUN25 – 13SEP25 during Summer season)

Reykjavik Keflavik – Stockholm Arlanda Tentatively scheduled as A321neo LR inaugural flight on 10DEC24

Reykjavik Keflavik – Tenerife South First flight 31OCT25 (2 weekly)

Reykjavik Keflavik – Toronto First flight 01MAY25 (No A321neo LR service scheduled 07MAY25 – 13SEP25. A321neo LR service scheduled until 25OCT25)

Reykjavik Keflavik – Zurich First flight 15SEP25 (until 26OCT25)
Aeroroutes

Photo: Icelandair

 

ROUTES - ICELANDAIR NS25 SERVICE CHANGES – 24SEP24

Photo: Ton Jochems - BRU

Icelandair earlier this month filed additional service changes to its planned operation for Northern summer 2025 season. Latest service adjustments include the following.

Reykjavik Keflavik – Barcelona 20JUN25 – 29AUG25 Increase from 3 to 4 weekly
Reykjavik Keflavik – Gothenburg 19JUN25 – 31AUG25 2 weekly 737 MAX 8, last served until July 2019

FI386 KEF1650 – 2140GOT 7M8 47
FI387 GOT2240 – 2340KEF 7M8 47

Reykjavik Keflavik – Lisbon eff 03APR25 Service extends to year-round, 2 weekly 737 MAX 8

FI578 KEF1600 – 2120LIS 7M8 47
FI579 LIS2220 – 0150+1KEF 7M8 47

FLEET - 1st A321neo for Icelandair emerges

 

Icelandair has shared photos of its first Airbus A321neo emerging after painting. The airline is set to take delivery of A321-200NX TF-IAA (12213) in November. By the start of next year's summer season, it expects to have taken delivery of three more.

In total, Icelandair is set to lease seven A321-200NXs, five via SMBC (one of which is this one), and two from CDB Aviation Leasing. The seven aircraft are an interim solution for the thirteen A321-200NYs the airline has on order directly with Airbus and which are planned for delivery from 2029 onwards.

Icelandair will use its new A321neos to replace its ageing fleet of Boeing B757s. Currently, the airline's fleet is made-up of seventeen B737-8s, four B737-9s, twelve B757-200s, two B757-300s, three B767-300ERs, and two B767-300ERBCFs.

Photo by Icelandair.

SPECIAL COLORS - ICELANDAIR / B757-23N / TF-FIC - Brand new titles on this Icelandair bird representing the latest round the world tour charter.

Photo: Matthew McDonald
Sydney Kingsford Smith Int'l Airport - YSSY
Australia

 

Fleet Modernization - Icelandair orders 13 Airbus A321XLR, becoming a new Airbus customer

Icelandair, the main Icelandic airline based in Keflavik, has placed a firm order for 13 Airbus A321XLR. The order makes Icelandair a new Airbus customer. The airline is also planning to lease four A321LRs.

With its extra long range, the A321XLR will allow Icelandair to seize new market opportunities. The aircraft will also enable the airline to reduce its operating costs, support its sustainability targets and at the same time offer its passengers the best in cabin comfort.

”We are very pleased to announce that we have now finalized the purchase agreement with Airbus. The efficient A321XLR aircraft will further strengthen our business model, increase our flexibility and provide opportunities for future growth, as well as further support our sustainability efforts. The first aircraft is scheduled for delivery in 2029 but we plan to have four Airbus aircraft in operation before summer of 2025 and have now secured the lease of new A321LR aircraft with our long-term partner SMBC Aviation Capital Limited” said Bogi Nils Bogason, Icelandair’s CEO.

"We extend our heartfelt gratitude to Icelandair for placing their trust and confidence in Airbus. It fills us with immense pride to welcome Icelandair as a new Airbus customer. By harnessing the exceptional performance of the A321XLR, your airline is forging a path of sustainable growth with remarkable efficiency and a significant reduction in CO2 emissions," expressed Christian Scherer, Airbus Chief Commercial Officer and Head of Airbus International.

The A321XLR is the next evolutionary step from the A320neo which responds to market needs for even more range and payload, creating more value for the airlines. It will deliver an unprecedented Xtra Long Range of up to 4,700nm – 15% more range than the A321LR and with 30% lower fuel burn per seat compared with previous generation competitor aircraft, as well as reduced NOx emissions and noise. For passengers, the A321XLR’s new Airspace cabin will provide the best travel experience, while offering seats in all classes with the same high-comfort as on a long-haul wide-body, with the low costs of a single-aisle aircraft. By the end of May 2023, the A320neo Family had accumulated more than 8,750 orders from  136 customers worldwide.

 

NEW AIRCRAFT - Icelandair orders A321XLRs

On 6 April 2023, Icelandair announced it has signed a Memorandum of Understanding (MoU) with Airbus for an order for thirteen A321XLRs (A321-200NY). The deal also includes options for twelve additional XLRs. Deliveries of the new Airbuses is expected from 2029 onwards.

Icelandair, however, plans to begin Airbus-operations by 2025 as the airline is also in advanced negotiations with lessors to lease four A321LRs (A321-200NX).

The airline is planning to use the new A321neos as the replacement for its fleet of seventeen Boeing B757-200s, two B757-300s, and three B767-300ERs. In the press-release, it also stated it will continue to operate its B737MAXs, of which the fleet today consists of fourteen B737-8s and four B737-9s.

Photo by Alain Charpentier