Icelandair carried 342,000 passengers in March 2026, marking a 10% increase compared to the same month last year, driven by strong demand to and from Iceland.
Traffic to Iceland rose by 16% and outbound traffic increased by 32%, while connecting passengers declined by 6% as the airline focused more on point-to-point markets. This strategy contributed to an 11% rise in yields. Passenger distribution included 39% inbound, 22% outbound, 32% connecting, and 7% domestic travel.
The airline maintained a high load factor of 83.5%, matching last year’s March record, although on-time performance fell to 75.4% due to adverse weather conditions in Iceland.
Beyond passenger operations, Icelandair saw strong growth in leasing activity, with sold block hours up 45%, helping offset seasonal fluctuations. Cargo performance also improved, with freight volumes rising by 7%.
The airline also noted rising fuel costs linked to geopolitical tensions in the Middle East, prompting measures such as fare adjustments, cost controls, and capacity changes. Despite weather-related disruptions, Icelandair emphasised the resilience of its operations and continued focus on optimising its network strategy.