ABOUT THE COMPANY
Icelandair traces its roots back to 1937 when Flugfélag Akureyrar, an emerging airline, was founded in northern Iceland. At the time, 117,000 people made up Iceland’s population. In 1944, three Icelandic pilots founded Loftleidir, an airline initially centralized around domestic flight services. By 1947, both airlines incorporated international flights, marking a pivotal moment in Icelandic aviation. Later, Loftleidir and Flugfélag Akureyrar merged under the name of the holding company Flugleidir in 1973. In 1979, Flugleidir operated under the name Icelandair for international travel while retaining the name Flugleidir for its domestic services. Since the merger, Icelandair continued to expand its international capabilities by slowly incorporating more global destinations. To account for its international growth, at its 50th year anniversary, Icelandair signed an agreement with Boeing to renew its existing international fleet. By 2003, eleven subsidiaries made up the holding company Flugleidir with Icelandair being the largest. Despite Icelandair’s growth, Flugleidir adjusted its focus towards investments in 2005 and changed its name to the FL Group. In 2006, the FL Group sold its stake in the Icelandair Group which was followed by the company being listed on the Iceland Stock Exchange. Additionally, Icelandair has been a member of the International Air Transport Association since 1950, the Association of European Airlines since 1957, and the Flight Safety Foundation since 1966.
Today, Icelandair Group is an Icelandic travel corporation that owns Icelandair and several other Icelandic travel companies. Due to its strategic location between Europe and North America, Icelandair Group serves about four million customers each year traveling to, from, around, and within Iceland. With a team of 3,325 employees, Icelandair operates over fifty aircrafts that travel to over fifty-five locations worldwide. As Iceland’s largest airline, Icelandair values fuel efficiency and enacts other sustainable practices to reduce its carbon footprint.
As the Icelandair Group looks to the future, the company seeks to continue to grow its existing fleet and further expand its flight routes. Most recently, the company announced a bilateral partnership with Southwest Airlines in 2025. This partnership will connect the two airlines’ networks and allow for Icelandair to extend its current market reach. In addition, Icelandair announced codeshare partnerships with Atlantic Airways and Air Greenland. As these partnerships increase the international presence of Icelandair, sustainability remains a central focus and is reflected in the company’s strategy and goals. In 2024 Icelandair's total number of passengers exceeded 4.6m, representing a 9% increase from 2023. As demand for travel increases, Icelandair projections for 2025 are to grow the route network by around 9%.
