Iceland’s flag carrier airline Icelandair has announced that it has decided to suspend its flights to Istanbul as of 1 February. In a statement by the airline, it was noted that passengers affected by this decision will be able either to rebook on connecting flights or receive a full refund of their ticket fares.
Under the collective bargaining agreement currently in force between Icelandair and the Icelandic Commercial Pilots’ Association, there was a special exemption allowing the operation of the Istanbul route. However, the union’s decision to withdraw this exemption as of 1 February 2026 eliminated the sustainability of the route.
Emphasis on Costs and Uncertainty
Icelandair CEO Bogi Nils Bogason stressed that Istanbul is a new destination of strategic importance for the company, stating that the route offers the potential to connect Asia and the Middle East with Iceland and North America.
Bogason included the following remarks in his statement:
“Unfortunately, the withdrawal of the exemption will lead to increased costs and operational uncertainty. This situation makes the operation and further development of this route no longer viable for our company.”
Future Plans on the Table
CEO Bogason noted that the Istanbul route has been suspended under the current conditions, while also stating that Icelandair will continue to evaluate opportunities in the Asian and Middle Eastern markets in the long term. It was indicated that the company could develop renewed growth strategies in these regions should operational and financial flexibility be ensured.
