Icelandair reports 13% passenger growth in May 2025, driven by strong demand to Iceland

In May 2025, Icelandair carried 448,000 passengers, up 13% year-over-year, with a strong 18% increase in inbound travel to Iceland. So far in 2025, the airline has served over 1.6 million passengers.

Passenger breakdown for the month:

• 29% travelled to Iceland
• 16% from Iceland
• 50% were transiting
• 5% flew domestically

The load factor was 79.6%, and on-time performance reached 84.1%. While yield dropped 2% due to competitive transatlantic pricing, charter flight hours rose 10%, and freight volume increased 2%. CO? emissions per tonne-kilometre decreased 4%, showing improved sustainability.

CEO Bogi Nils Bogason highlighted new strategic moves, including:

• A codeshare agreement with Air India
• Expanded partnerships with Southwest and Turkish Airlines
• New winter routes to Edinburgh and Malaga
• An extended Nashville schedule
• Delivery of Icelandair’s fourth Airbus, boosting future network flexibility and efficiency.