Icelandair reported a record-breaking performance in 2025, carrying 5.1 million passengers, an 8% increase year on year and the first time in the airline’s history that passenger numbers exceeded five million.
December capped the strong year, with 344,000 passengers transported, up 10% compared to December 2024. Of these, 48% travelled via Iceland, while 27% flew to Iceland, 20% from Iceland, and 6% on domestic routes. The airline also achieved a record December load factor of 84.1%.
Operational performance improved significantly. On-time performance reached 80.1% in December, up sharply from 59.7% a year earlier, while full-year punctuality rose to 83.9%, placing Icelandair among Europe’s top-performing airlines.
Sustainability and ancillary operations also showed progress. CO? emissions per Operational Tonne Kilometre fell by 6% year on year in December, supported by a more fuel-efficient fleet and high load factors. Leasing activity expanded, with sold block hours up 11%, while freight volumes increased 3%.
Commenting on the results, President and CEO Bogi Nils Bogason said 2025 was the largest year in the airline’s history, highlighting a strategic focus on boosting off-peak capacity to improve infrastructure utilisation and reduce seasonality. He credited the strong operational results to the collective efforts of the Icelandair team.