Posted by: neilh10 | November 21, 2011

Iceland express on the verge of collapse?

Looks like Iceland express might be in a bit of difficulty.

Earlier on today, the Icelandic media (h/t Iceland Weather report) reported that it has pulled its Keflavik – New York route, with immediate effect. This is a rather unusual and drastic step, even for an airline with a reputation for extreme unpredictability, like Iceland express.

And within the last few hours, the UK media have reported that the airlines sister company, Astraeus Airlines has filed for bankruptcy. As far as I understand it, all the operations of Iceland express were outsourced to Astraeus. They are owned by the same Reykjavik based parent company, Eignarhaldsfélagið Fengur HF.

I am hopeful that there will be some kind of rescue for Iceland express, who have been highly instrumental in making Iceland accessible for tourists. Many of their detractors forget this. They also employ about 60 people on the Island- far more than I suspect easy jet ever will. The airline plays an important part in Icelandic cultural life – like their rivals Icelandair, they sponsor sport tournaments and music events.

Músík Express (from flickr)

However, given the circumstances, I think it would be rather unwise to book flights on Iceland express, until a clearer picture emerges of the situation.

Update (6.57pm)

It seems that Iceland express have released a press release, indicating that they will continue flying and have signed a deal with CSA Czech Airlines to lease a 180 seat Airbus A320 with immediate effect. There is no sign of the press release on the Iceland express website (nor is there any coverage of their decision to pull the new york flights, which is rather unhelpful). Indeed, the most recent press release on the Iceland express website dates back to 2008. I read about this development on RUV.



  1. Icelandexpress has been resorting their flight plans for this winter in the last days. Flights to Berlin for example where moved to the late afternoon/evening, so they can serve an early pair of flights to somewhere else (Copenhagen for example) and the use the same aircraft to go to Berlin. And I guess there will be more straightening of their routes.

  2. im worried about my flight to New York from Berlin. (mid december). i didnt know about the quality of the service they offer, otherwise i could arrange with another airline. i already changed my entire journey with extra cost from athens to berlin. if they canceled the NY flight,then for the second time in a single flight ,they mess my entire journey and f****up my christmas program.
    where can i find the latest details about Iceland Express please ?
    they dont update the website!

  3. Iceland express have a call centre that is, in my experience, very helpful. Although they might be a bit busy at the moment!

    The details are at this link here:

    Good luck

  4. thank you 🙂
    they replied on the phone and she said they will arrange everything “somehow” and they will resend a confirmation of my ticket.
    after reading so many bad feedbacks on internet about Iceland Express, i was worrying but now less worry.
    Iceland, im coming yeaaaaaa

  5. fingers crossed. keep on at them, is my advice.

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