Icelandair has cancelled a number of flights across its summer schedule in early July 2026 following a combination of aircraft availability constraints and an unresolved contract dispute with its pilots’ union, FAIF (Félag Íslenskra Flugmanna). The disruption is concentrated on European and transatlantic routes.
The carrier has not issued a formal strike notice as of 17 July, but negotiations between Icelandair management and FAIF have stalled. Industry observers consider further schedule changes likely through the remainder of July.
What passengers should check
If you hold an Icelandair booking departing or arriving in July or August:
- Check your booking directly on the Icelandair website or app for cancellation or rebooking notifications. The airline is sending affected passengers email notices, though these can arrive with delays.
- EU261/2004 rights apply to passengers departing from EU airports, or on flights operated by EU-licensed carriers. Depending on the notice period, you may be entitled to rebooking on the next available service, a full refund, or financial compensation.
- US passengers on transatlantic routes have more limited automatic protections. Icelandair has in some cases offered alternative routings via codeshare partners; if you are affected, contact the airline directly to explore options.
Effect on Iceland arrivals
Keflavik International Airport is fully operational. The disruption is at the airline level, not the airport, and other carriers serving Iceland - including Play, easyJet, and seasonal charter operators - are not affected by this dispute.
If you are rerouting or rebooking onto a different carrier and still plan to arrive in Iceland, the practical picture does not change: our Reykjavik guide covers the city, and our Iceland road trip planning section is a useful starting point if self-drive is part of your itinerary. Our practical guide covers getting from Keflavik to Reykjavik (the Flybus or rental car are the main options) and general travel logistics.