Editing Icelandair (section)

== History ==
=== Flugfélag Íslands in the early decades ===
[[File:Douglas C-54A TF-ISE Flugfelag LAP 02.06.53 edited-2.jpg|thumb|The first Flugfélag Íslands [[Douglas DC-4]], dubbed ''[[Gullfaxi]]'', arriving at [[London Heathrow Airport]] in June 1953]]

Icelandair traces its roots back to 1937, when '''Flugfélag Akureyrar''' was founded in [[Akureyri]] on the north coast of Iceland. Flight operations started in 1938 with a single [[Waco YKS-7]] configured as a [[floatplane]]. In 1939 the airline was grounded when this aircraft was destroyed in a capsizing accident. In March 1940, Flugfélag Akureyrar moved its hub to Reykjavík and moved its operations to fixed-wing [[seaplane]] scheduled flights from the Vatnsmýri area, and changed its name to Flugfélag Íslands,<ref>{{Cite web |title=Verkamaðurinn - 2. tölublað (12.01.1968) - Tímarit.is |url=https://timarit.is/page/2312404?iabr=on#page/n5/mode/1up/search/millilandaflug%20keflav%C3%ADkurflugv%C3%B6llur |access-date=2024-10-27 |website=timarit.is}}</ref> where it acquired another Waco aircraft and was relaunched in 1940 as '''Flugfélag Íslands''', which translates as ''Flight Company of Iceland''.<ref>{{cite web |title=Icelandair |publisher=Funding Universe |url=http://www.fundinguniverse.com/company-histories/Icelandair-Company-History.html |access-date=23 May 2011}}</ref> Seaplane flights were operated in the vicinity of Vatnsmýri in [[Skerjafjörður]] and Vatnagarðar.<ref>{{Cite web |title=Verkamaðurinn - 2. tölublað (12.01.1968) - Tímarit.is |url=https://timarit.is/page/2312404?iabr=on#page/n5/mode/1up/search/millilandaflug%20keflav%C3%ADkurflugv%C3%B6llur |access-date=2024-10-27 |website=timarit.is}}</ref> Previously, the two unrelated airlines of the same name (Flugfélag Íslands) had existed in the country (from 1919 to 1920, and between 1928 and 1931).<ref name="flugsafn.is">{{cite web |title=A brief history commercial Air ICELAND |publisher=Flugsafn Íslands |url=http://www.flugsafn.is/index.php?option=com_content&view=article&id=55&Itemid=145&lang=en |year=2009 |access-date=23 May 2011 |archive-url=https://web.archive.org/web/20110722023030/http://www.flugsafn.is/index.php?option=com_content&view=article&id=55&Itemid=145&lang=en |archive-date=22 July 2011 |url-status=dead |df=dmy-all }}</ref> For international purposes, the name '''Iceland Airways''' was adopted.<ref name="atdb">{{cite web|url=http://www.aerotransport.org/php/go.php?query=operator&qstring=Icelandair&where=100187&luck= |title=Icelandair (ATDB) |publisher=Aerotransport.org |date=6 August 2012|access-date=7 October 2012}}</ref>

In 1940, Iceland was [[Invasion of Iceland|invaded by the British]] and [[Reykjavík Airport]] was established south of the capital during the war. In in 1946 the airport was handed over to Icelandic civilian authorities, now called [[Isavia]].<ref name=":02">{{Cite web |date=2018-11-19 |title=Saga flugvalla og flugleiðsögu by Isavia - Issuu |url=https://issuu.com/isavia0/docs/saga_isavia_web_161118_mu |access-date=2024-10-27 |website=issuu.com |language=en}}</ref> Iceland Airways (Icelandair) inherited a small building constructed by the British Army on the west side of the airport. Since 1947, the building has been gradually expanded but is still in use by Icelandair as a domestic terminal in 2024. By the 1950s, Iceland Airways operated flights to Britain and Northern Europe from the airport, as well as domestic flights.<ref name=":02"/>

The airline was based from [[Reykjavík Airport]], close to the city centre, and the fleet was expanded with a [[Beechcraft Model 18]] in 1942; and with two [[De Havilland Dragon Rapide]]s<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=777146 |title=Frægar flugvélar úr Íslandssögunni |publisher=Mbl.is |date=25 January 2004|access-date=7 October 2012}}</ref> and a [[Consolidated PBY Catalina]] in 1944, the latter being the first ever aircraft registered in Iceland to be flown to Iceland by an Icelandic crew from North America.<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=1024205 |title=Catalina-flugbáturinn TF-ISP fór fyrsta millilandaflugið |publisher=Mbl.is |date=22 June 2005 |access-date=7 October 2012}}</ref> On 11 July 1945, this aircraft operated the first commercial flight over the Atlantic Ocean for the airline, which led from Reykjavík to [[Largs]] in Scotland, with four passengers and four crew members on board. Regular flights to [[Glasgow Prestwick Airport|Prestwick Airport]] in Scotland and Copenhagen in Denmark, using [[Consolidated B-24 Liberator]] aircraft leased from [[Scottish Airlines]] were launched in 1946.<ref name="flugsafn.is" />

In the same year, the comfort and performance of domestic flights in Iceland was improved with the introduction of the [[Douglas DC-3]]. A total of six were purchased, which remained in service with the airline until 1972.<ref>{{cite web |title=Síðasta dreifing fyrir Landgræðslu |publisher=Visir |language=is|url=http://visir.is/sidasta-dreifing-fyrir-landgraedslu/article/2005505100413 |date=10 May 2005 |access-date=23 May 2011}}</ref> Until the late 1960s, Flugfélag concentrated mostly on domestic service, but it also continued operating internationally; in 1948, the [[Douglas DC-4]] was introduced on international routes, and in 1957 two new [[Vickers Viscount|Vickers 759 Viscounts]] were acquired, the first [[turboprop]] airliners to be operated by an Icelandic airline. In the 1950s, Flugfélag began to use ''Icelandair'' branding for flights beyond Iceland.<ref name="atdb"/>

[[File:Vickers 759 Visc TF-ISU Iceland LHR 07.09.62 edited-2.jpg|thumb|right|Flugfélag Íslands [[Vickers Viscount]] at London Heathrow Airport in 1962]]

In 1967, Flugfélag was the first Icelandic airline to join the [[jet age]], when a [[Boeing 727|Boeing 727-100]] dubbed ''[[Gullfaxi]]'' was put into service. The B-727 jet aircraft was operated from [[Keflavík International Airport|Keflavík Airport]], as the aircraft was considered too large for the smaller [[Reykjavík Airport]]. Most of Flugfélag's international operations transferred to Keflavík by this time. This left only shorter-distance flights to [[Greenland]] and the [[Faroe Islands|Faroes]] as the only international services from Reykjavík Airport.<ref>{{cite web |title=Fyrsta þota Íslendinga |publisher=Morgunbladid |url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=1068577 |date=26 February 2006 |language=is|access-date=23 May 2011}}</ref> Another 727 was acquired in 1971, and the aircraft type was operated until 1990.<ref>{{cite news |title=Kveðjuflug Heimfara |date=27 September 1990 |newspaper=Morgunblaðið |url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=56722 |language=is|access-date=23 May 2011}}</ref> In 2008, the cockpit section of ''Gullfaxi'' was put on display at the [[Aviation Museum of Iceland|Akureyri Aviation Museum]].<ref>{{cite news |title=Stjórnklefi Gullfaxa varðveittur í Flugsafninu á Akureyri |newspaper=Morgunblaðið |language=is|date=29 March 2008 |url=http://www.mbl.is/frettir/innlent/2008/03/29/gullfaxi_verdur_a_akureyri/ |access-date=23 May 2011}}</ref>

=== Loftleiðir ===
{{Main|Loftleiðir}}
Another company, Loftleiðir, called Icelandic Airlines internationally, was formed in 1944 by three young pilots returning from their flight training in Canada. The company, whose name roughly means "Skyways", initially concentrated on Icelandic domestic routes using two [[Stinson Reliant]]s and then a [[Grumman G-21 Goose]]<ref>{{cite web |url=http://www.photos.is/main.php?g2_itemId=44154 |title=ss07130.jpg Grumman flugbátur Loftleiða 1946 |publisher=Photos.is |access-date=7 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120425162512/http://www.photos.is/main.php?g2_itemId=44154 |archive-date=25 April 2012 }}</ref> [[amphibious aircraft]].
[[File:Loftleidir - Icelandic Airlines Douglas DC-8-63CF Haafke.jpg|thumb|A Loftleiðir Icelandic [[Douglas DC-8|DC-8]] aircraft at [[Luxembourg Airport]] in 1978.]]
Loftleiðir began scheduled international operations in 1947 from a small shed on the east apron of [[Reykjavík Airport]].<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=415950 |title=Hálf öld frá fyrsta flugi Loftleiða til Ameríku |publisher=Mbl.is |date=27 August 1998 |access-date=7 October 2012}}</ref> Loftleiðir soon began challenging Flugfélag's dominance within Iceland; by 1952, the Icelandic authorities became concerned that the fierce domestic rivalry would cripple both companies, and attempted to force them to merge.<ref name="timarit.is">{{cite web|url=http://timarit.is/view_page_init.jsp?pageId=3165132 |title=Frjáls verslun, 40. árgangur 1981, 4. tölublað |publisher=Timarit.is |access-date=7 October 2012}}</ref> Unable to consummate a merger, the authorities instead divided domestic routes between the two airlines, prompting Loftleiðir to exit the domestic market and concentrate instead on international flights.<ref name="timarit.is" /><ref>{{cite web|author=Sigurgeir Orri Sigurgeirsson |url=http://sigurgeirorri.blog.is/blog/sigurgeirorri/month/2009/5/?offset=10 |title=Bloggfærslur mánaðarins, maí 2009 |publisher=sigurgeirorri.blog.is |access-date=7 October 2012}}</ref> Its pioneering low-fare service across the North Atlantic commenced in 1953.<ref>{{cite web |url=http://www.caa.is/Flugmalastjorn/SagaFlugmalastjornar/AtburdiriflugsoguIslands/ |title=Atburðir í flugsögu Íslands |language=is |publisher=Caa.is |access-date=7 October 2012 |archive-date=25 April 2012 |archive-url=https://web.archive.org/web/20120425162513/http://www.caa.is/Flugmalastjorn/SagaFlugmalastjornar/AtburdiriflugsoguIslands/ |url-status=dead }}</ref> Loftleiðir is considered a precursor to the [[low-cost carrier]]s,  that emerged worldwide in the 1970s, as it was not part of or subject to [[International Air Transport Association|IATA]] fares or rules.<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=128676 |title=FIMMTÍU ÁR FRÁ STOFNUN LOFTLEIÐA Stærsta ævintýri lýðveldisins Jakob F |publisher=Mbl.is |access-date=7 October 2012}}</ref><ref>{{cite web|url=http://sigurgeirorri.blog.is/users/b3/sigurgeirorri/files/145293_vi_skiptabla_i_14-05-2009.pdf |title=Orrustan um Loftleidir |publisher=Sgurgeirorri.org |access-date=7 October 2012}}</ref><ref>{{cite web|url=https://issuu.com/sigurgeirorri/docs/bookletloftleidirbls2 |title=Loftleidir |publisher=Issuu.com |date=2 September 2010 |access-date=7 October 2012}}</ref> Loftleiðir, anticipating increased demand, began construction of a large passenger terminal at [[Reykjavík Airport]].<ref>{{Cite web |title=Frjáls verslun - 1. tölublað (01.01.1975) - Tímarit.is |url=https://timarit.is/page/3158412?iabr=on#page/n8/mode/1up/search/loftlei%C3%B0ir%20reykjav%C3%ADkurflugvelli |access-date=2024-10-30 |website=timarit.is}}</ref>

The late 1960s were an exciting time for Loftleiðir.<ref>{{cite news| url=https://www.nytimes.com/2009/02/17/business/17helgason.html?_r=1&scp=1&sq=helgason&st=cse | work=The New York Times | first=Caroline | last=Brothers | title=Sigurdur Helgason, 87, Airfare Pioneer, Dies | date=17 February 2009}}</ref> In 1964, the airline acquired [[Canadair CL-44]] aircraft, which were the largest [[Transatlantic flight|transatlantic]] aircraft operating at the time.<ref>{{Cite web |title=Aircraft Photo of TF-LLF {{!}} Canadair CL-44J {{!}} Loftleidir - Icelandic Airlines {{!}} AirHistory.net #339166 |url=https://www.airhistory.net/photo/339166/TF-LLF |access-date=2024-10-27 |website=AirHistory.net |language=en}}</ref> As a result of the large size of the new aircraft, Loftleiðir moved its entire operation to [[Keflavík International Airport|Keflavík Airport]] in the same year, abandoning [[Reykjavík Airport]] completely.<ref name=":12">{{Cite web |title=Vorið - 3. Tölublað (01.09.1967) - Tímarit.is |url=https://timarit.is/page/4566914?iabr=on#page/n21/mode/1up/search/millilandaflug%20keflav%C3%ADkurflugv%C3%B6llur |access-date=2024-10-30 |website=timarit.is}}</ref> The planned passenger terminal at Reykjavik Airport later became a hotel and headquarters for Loftleiðir. It continued to house the headquarters of Icelandair  until 2024. The Loftleiðir hotel was operated under the Icelandair brand until 2022.<ref>{{Cite web |title=Frjáls verslun - 1. tölublað (01.01.1975) - Tímarit.is |url=https://timarit.is/page/3158412?iabr=on#page/n8/mode/1up/search/loftlei%C3%B0ir%20reykjav%C3%ADkurflugvelli |access-date=2024-10-30 |website=timarit.is}}</ref>

In 1969 the company acquired International Air Bahama, a small Bahamian airline that operated transatlantic nonstop service between [[Nassau, Bahamas|Nassau]] and Luxembourg using [[Douglas DC-8]] jetliners,<ref>http://www.timetableimgaes.com {{dead link|date=November 2017 |bot=InternetArchiveBot |fix-attempted=yes }}, 1 Nov. 1970 International Air Bahama system timetable</ref> and a year later, Loftleiðir became one of the founders of [[Cargolux]], a cargo airline. Also in 1970, Loftleiðir entered the jet age with its first two DC-8 aircraft.<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=1091980 |title=Flugstjórar Skymaster-vélarinnar Heklu |publisher=Mbl.is |access-date=7 October 2012}}</ref>

During those years, many people including the company's own staff called Loftleiðir "the [[Hippie]] Airline" or "the Hippie Express".<ref>{{cite web|url=http://skemman.is/stream/get/1946/3333/10442/4/Eyrun_Oskarsdottir_fixed.pdf |title=Efnisyfirlit |publisher=[[Skemman.is]] |access-date=7 October 2012}}</ref> The airline was not known for speed or punctuality, but flying with the company became a sort of rite of passage for young "hippies" from America travelling to Europe, one of whom was future U.S. president [[Bill Clinton]].<ref>{{cite web |title=Loftleiðir Icelandic Airlines |publisher=knol |url=http://knol.google.com/k/fausto-gardini/luxembourg-new-york-luxembourg/2h2drar9l37dn/12# |access-date=7 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20110721040034/http://knol.google.com/k/fausto-gardini/luxembourg-new-york-luxembourg/2h2drar9l37dn/12 |archive-date=21 July 2011 }}</ref><ref>{{cite web |title=Icelandair hafði áhrif á samband Hillary og Bill Clintons - Hitti Össur fyrir stundu í USA |first=Steinunn Edda |last=Steingrímsdóttir |language=is |publisher=Pressan |url=http://www.pressan.is/Frettir/LesaFrett/icelandair-hafdi-ahrif-a-samband-hillary-og-bill-clintons---hitti-ossur-fyrir-stundu-i-usa |date=23 May 2011 |access-date=23 May 2011 |archive-url=https://web.archive.org/web/20150912073015/http://www.pressan.is/Frettir/LesaFrett/icelandair-hafdi-ahrif-a-samband-hillary-og-bill-clintons---hitti-ossur-fyrir-stundu-i-usa |archive-date=12 September 2015 |url-status=dead }}</ref>

=== Merger with Loftleiðir ===
During the [[1970s energy crisis]], the economic situation for both Flugfélag Íslands and Loftleiðir worsened. The government of Iceland initiated a new attempt to merge the two airlines, which could be realized in 1973 following lengthy and difficult negotiations.<ref>{{cite web|url=http://timarit.is/view_page_init.jsp?pageId=3165359 |title=Frjáls verslun, 40. árgangur 1981, 9. tölublað |publisher=Timarit.is |access-date=7 October 2012}}</ref> In 1975, the Icelandic government provided a $13.5 million loan to Flugleiðir.<ref name=":0">{{Cite web|title=Yrði ekki í fyrsta sinn - Viðskiptablaðið|url=http://www.vb.is/frettir/yrdi-ekki-i-fyrsta-sinn/161574/|website=www.vb.is|language=en-us|url-status=live|archive-url=https://web.archive.org/web/20200508103447/https://www.vb.is/frettir/yrdi-ekki-i-fyrsta-sinn/161574/|archive-date=8 May 2020|access-date=2020-05-03}}</ref> The staff of Loftleiðir complained that Flugfélag Íslands, although smaller, had gained the upper hand in the united company.<ref>{{cite news |title=Hlakkaði alltaf til næsta dags |language=is|newspaper=Morgunblaðið |url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=757502 |date=15 October 2003 |access-date= 23 May 2011}}</ref> A holding company called ''[[Stodir|Flugleiðir]]'' was created, which combined the two companies and began to streamline staff and operations.<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?radnr=342619 |title=mbl.is |publisher=mbl.is |access-date=7 October 2012}}</ref> At the time of the merger, two-thirds of the passenger traffic of the airline were international transatlantic crossings, and Flugfélag Íslands's fleet of Douglas DC-3s and Boeing 727s were enlarged by the [[Douglas DC-8]]s of Loftleiðir. In 1979, the two airlines Flugfélag Íslands and Loftleiðir merged into one airline Flugleiðir, and the airline was renamed '''Icelandair.'''

=== Post-merger Icelandair ===
[[File:Icelandair Douglas DC-8 Luxembourg - 7 August 1983.jpg|thumb|A pair of Icelandair [[Douglas DC-8]]s at [[Luxembourg - Findel Airport|Luxembourg-Findel Airport]] in 1983]]
[[File:Boeing 727-185C, Icelandair AN1937278.jpg|thumb|right|A [[Boeing 727]] of Icelandair approaches [[London Heathrow Airport]] in 1983.]]

In 1980, the Icelandic government provided a loan to Icelandair due to the company's bad financial situation.<ref name=":0" />

[[File:Icelandair Boeing 737-400 Aragao.jpg|thumb|An Icelandair [[Boeing 737 Classic|Boeing 737-400]] at [[Faro Airport]] in 1992]]

The aircraft fleet of Icelandair remained mainly unchanged until the [[Boeing 757|Boeing 757-200]] became the new backbone for transatlantic flights during the 1990s. The domestic Fokker F27s were replaced by [[Fokker 50]]s and Boeing 737s deployed on European routes. The European hub at [[Luxembourg Findel Airport|Luxembourg Airport]] had been taken over from Loftleiðir. Passenger count topped one million in 1997<ref>{{Cite news|url=http://icelandreview.com/news/2015/07/31/rapid-growth-icelandic-aviation-sector|title=Rapid Growth in Icelandic Aviation Sector|last=Elliott|first=Alëx|date=2015-07-31|work=Iceland Review|access-date=2017-05-05|language=en}}</ref> as the company's business grew on a reputation as a "backpacker airline", similar to Loftleiðir, which had been referred to as "Hippie Airline" since the late 1960s. In the same year, it was begun to dismantle the Luxembourg hub in favour of today's decentralized European network, linking the largest cities non-stop to Reykjavík,<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=414893 |title=1.578 milljóna króna tap á fyrri árshelmingi |publisher=Mbl.is |date=21 August 1998 |access-date=7 October 2012}}</ref> closing it down altogether by 1999.<ref>{{Cite web|url=http://luxembourgensia.blogspot.com/2013/01/9-january-1999-icelandair-last-flight.html|title=9 January 1999: Icelandair Last Flight.|access-date=2017-05-05}}</ref>

In 1997 the domestic operations of Icelandair, part of which had previously been operated under the 'Flugfélag Nordurlands' branding, were combined with a small airline Nordurflug to form the [[Air Iceland Connect|Air Iceland (Icelandic: ''Flugfélag Íslands'')]] subsidiary,<ref>{{cite web|url=http://www.mbl.is/mm/gagnasafn/grein.html?grein_id=313552 |title=Innanlandsflug Flugleiða verður sameinað Flugfélagi Norðurlands undir nafninu |publisher=Mbl.is |access-date=7 October 2012}}</ref> allowing mainline Icelandair to fully concentrate on international flights since then. On 20 November 1999, a new aircraft livery was introduced, as part of an image campaign designed to retire Icelandair's "backpacker" label in favour of an emphasis on business travel. In 2001, the Icelandair hub was moved to [[Keflavík International Airport]]. As Icelandair particularly focuses on flights to North America, the company was significantly affected by the [[Operation Yellow Ribbon|airspace closure]] following the [[September 11 attacks]] in the same year.

The Flugleiðir holding was reorganized as [[Icelandair Group]] (for aviation business) and [[Stodir|FL Group]] (for non-aviation finance and investment business) between 2002 and 2005, with Icelandair becoming the largest and most important of eleven subsidiaries. The [[aircraft lease|wet-lease]] and charter department, which was founded in 2003, was named ''Loftleiðir Icelandic'', thus re-introducing a familiar name.<ref>{{cite web|url=http://www.loftleidir.com/ |title=A reliable long term partner |website=Loftleidir.com |access-date=7 October 2012}}</ref>

=== Developments since 2010 ===
Icelandair was hit by the [[2008–11 Icelandic financial crisis|2008 financial crisis]] in the country and was further impacted by a volcanic eruption in 2010.<ref>{{Cite news |date=2010-03-21 |title=Volcano erupts in south Iceland |url=http://news.bbc.co.uk/1/hi/world/europe/8578576.stm |access-date=2024-12-08 |language=en-GB}}</ref> Air traffic restrictions following the [[2010 eruptions of Eyjafjallajökull]] resulted in large parts of the European airspace [[Air travel disruption after the 2010 Eyjafjallajökull eruption|being closed down]]. The air travel disruption coincided with the start of the important summer season for the company. The in-house crisis management organisation began assessing the situation once the scale of the problem had become known.<ref name="en.keilir.net">{{cite web|url=http://en.keilir.net/static/files/conferences/eyjaaviation/lunchday2/icelandair-lunch.pdf|title=Presentation of the measure taken by Icelandair to cope with the 2010 air travel disruptions|publisher=Keilir.net|access-date=7 October 2012|archive-date=23 March 2012|archive-url=https://web.archive.org/web/20120323191122/http://en.keilir.net/static/files/conferences/eyjaaviation/lunchday2/icelandair-lunch.pdf|url-status=dead}}</ref> Thrice-daily crisis meetings were held at the airline's headquarters. Icelandair tried to operate as many passenger flights as possible, keeping its hub at [[Keflavík International Airport|Keflavík]] open and diverting European flights to airports that were still open. The eventual closure of Keflavík due to the [[volcanic ash]] cloud coincided with an improvement of the situation towards Europe, which allowed Icelandair to move its headquarters with 200 staff to Glasgow and operate flights from there for ten days,<ref name="icelandair.is">{{cite web |title=Icelandair and the Eyjafjallajökull volcanic eruption in 2010 |publisher=Icelandair |url=http://www.icelandair.is/specials/pages/is/eyjafjallajokull/ |access-date=23 May 2011}}</ref><ref>{{cite web|url=http://www.flightglobal.com/articles/2010/04/28/341225/icelandair-shifts-volcano-hit-hub-operation-back-to.html |title=Icelandair shifts volcano-hit hub operation back to Reykjavik |publisher=Flightglobal.com |date=28 April 2010 |access-date=7 October 2012}}</ref> with shuttle flights to Iceland's [[Akureyri Airport]] and round-the-clock bus shuttles onwards to Reykjavík.

In the [[Consequences of the April 2010 Eyjafjallajökull eruption|aftermath of the eruption]], the government of Iceland launched the successful<ref>{{cite web|url=http://www.icenews.is/index.php/2011/05/11/iceland-continues-to-inspire-with-successful-tourism-campaign/|title=Iceland continues to inspire with successful tourism campaign|date=11 May 2011|publisher=Icenews.is|access-date=11 May 2011}}</ref><ref>{{cite web |title=Inspired by Iceland campaign continues to boost tourism in Iceland |publisher=eNewsWire UK |url=http://www.enewswire.co.uk/2011/05/13/inspired-iceland-campaign-continues-boost-tourism-iceland/ |date=13 May 2011 |access-date=23 May 2011}}</ref><ref>{{cite web |first1=Anna |last1=Valdimarsdóttir |first2=Inga Hlín |last2=Pálsdóttir |title=Joining Forces: Inspired by Iceland |publisher=Tourism Review |url=http://www.tourism-review.com/travel-tourism-magazine-inspired-by-iceland-successful-tourism-promotion-campaign--article1399 |access-date=23 May 2011}}</ref> "Inspired by Iceland" campaign to regain confidence in travelling to Iceland for tourists and business people,<ref>{{cite web|url=https://www.youtube.com/watch?v=npawmHVaf-E |archive-url=https://ghostarchive.org/varchive/youtube/20211211/npawmHVaf-E| archive-date=2021-12-11 |url-status=live|title=Inspired by Iceland Video |publisher=YouTube |access-date=7 October 2012}}{{cbignore}}</ref> of which Icelandair was a leading participant and initiator.<ref name="icelandair.is"/>

When the [[Grímsvötn]] volcano erupted in 2011, Icelandair once again had to cope with airspace closures in Europe. However, this time to a lesser extent due to a higher level of political preparedness.<ref>{{cite news |title=UK 'better prepared' for volcanic ash than last year |date=22 May 2011 |url=https://www.bbc.co.uk/news/uk-13496391 |publisher=BBC |access-date=23 May 2011}}</ref><ref>{{cite news| url=https://www.bbc.co.uk/news/uk-13498477 | work=BBC News | title=Flights cancelled as ash cloud heads towards UK | date=23 May 2011}}</ref> Weekly newspaper ''[[The Economist]]'' claimed that Icelandair could even take advantage when catering for [[disaster tourism|disaster tourists]].<ref>{{cite news| url=https://www.economist.com/blogs/gulliver/2011/05/grimsvotn_volcano_and_disaster_tourism | newspaper=The Economist | title=Come to Iceland! | date=28 May 2011}}</ref>

In February 2011 Icelandair was chosen "The Knowledge Company" of the year and Icelandair [[Chief Executive Officer|CEO]] [[Birkir Hólm Guðnason]] was picked as "Man of the Year" in the Icelandic business community.<ref name="sa.is">{{cite web |url=http://www.sa.is/frettir/almennar/nr/5110/ |title=Icelandair hlaut Þekkingarverðlaunin 2011 - Fréttir - Samtök atvinnulífsins |publisher=Sa.is |date=25 February 2011 |access-date=7 October 2012 |url-status=dead |archive-url=https://web.archive.org/web/20120425152447/http://www.sa.is/frettir/almennar/nr/5110/ |archive-date=25 April 2012 }}</ref> In both categories the panel of judges of the Association of Economists and Business Graduates in Iceland said that "the fine results of the company in the previous year showed both a high degree of skill and specialist knowledge within the company as well as excellent leadership."<ref name="sa.is"/> In October of the same year, the airline was awarded the title "Marketing Firm of the Year in Iceland", by a judging panel from IMARK, the Marketing Association in Iceland.<ref>[http://www.imark.is/Forsida/Vidburdir/Islensku-markadsverdlaunin] {{webarchive|url=https://web.archive.org/web/20111231134545/http://www.imark.is/Forsida/Vidburdir/Islensku-markadsverdlaunin|date=31 December 2011}}</ref>

Icelandair moved its headquarters to Hafnarfjörður in 2024, to consolidate its offices under one roof. Their previous headquarters at [[Reykjavík Airport]] were in use for over 50 years, having been built by [[Loftleiðir]].<ref name=":3">{{Cite web |title=Icelandair flutt til Hafnarfjarðar |url=https://vb.is/frettir/icelandair-flutt-til-hafnarfjardar/ |access-date=2025-03-27 |website=www.vb.is}}</ref>

==== Further route expansion ====
After having launched scheduled flights to Washington, D.C., in 2011,<ref>{{cite web|url=http://www.icelandair.us/information/media/newslist/detail/item463406/Icelandair_Announces_Flights_from_Washington,_D_C_/ |title=Icelandair Announces Flights from Washington, D.C. |publisher=Icelandair.us |date=24 August 2012 |access-date=7 October 2012}}</ref> [[Denver]] was announced as a new U.S. destination for 2012, followed by Anchorage in 2013, bringing the total number of cities served in the country up to eight, along with Boston, Minneapolis, New York City, Orlando and Seattle.<ref>{{cite web|url=http://www.icelandair.us/information/media/newslist/detail/item541361/Icelandair_Takes_Off_from_Denver/ |title=Icelandair Takes Off from Denver |publisher=Icelandair.us |date=24 August 2012 |access-date=7 October 2012}}</ref> Also in 2012, Icelandair introduced flights linking [[Akureyri Airport|Akureyri]] to its Keflavík hub through subsidiary company [[Air Iceland]].<ref>{{cite web|url=http://www.icelandair.is/information/media/newslist/detail/item588851/_Flug_Icelandair_fra_Akureyri_hefst_i_dag|title=Flug Icelandair frá Akureyri hefst í dag|access-date=24 April 2015}}</ref>

From 2009 to 2014, operations doubled. Twice-weekly flights to Vancouver commenced on 13 May 2014 and continued until October of that year. Flights to Edmonton started on 4 March 2014, with a year-round service operating five times a week. The Geneva service started on 24 May 2014 and continued twice weekly until September.<ref>{{cite web|url=http://www.icelandair.ca/information/media/newslist/detail/item698766/icelandair_announces_growth_plans_for_2014/|title=Icelandair Announces Growth Plans for 2014 - Icelandair|access-date=24 April 2015}}</ref>

On 9 December 2014, Icelandair revealed a northern lights-themed Boeing 757-200 (registration TF-FIU) named ''Hekla Aurora''.<ref>{{cite web|url=https://www.flickr.com/photos/bradley_at_egsh/15985438512/|title=Flickr - Photo Sharing!|date=9 December 2014|access-date=24 April 2015}}</ref> The exterior features artwork depicting an Icelandic winter scene and LED mood lighting emulating the [[Aurora Borealis]].<ref name="auto">{{cite web|url=http://www.icelandair.us/hekla-aurora|title=Hekla Aurora|access-date=8 September 2018}}</ref>

On 5 February 2015, [[Birmingham]] became Icelandair's 5th gateway in the UK, and the 39th overall, with flights operating twice weekly, on Thursdays and Mondays.<ref>{{cite web|url=http://www.icelandair.co.uk/information/media/newslist/detail/item737042/icelandair_to_start_flights_from_birmingham_to_iceland/|title=Icelandair to fly from Birmingham to Iceland, USA and Canada|access-date=24 April 2015}}</ref> On 19 May 2015, Icelandair launched scheduled flights to and from Portland, Oregon in the US: its 14th destination in North America. Flights were set to operate twice weekly, on Tuesdays and Thursdays, until 20 October.<ref name="newsclient.omxgroup.com">{{cite web|url=https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=623883&lang=en|title=Icelandair Group announces continued growth in international flights for 2015|access-date=20 July 2016}}</ref> Further expansion of Icelandair's global network was announced on 12 May 2015 with new, year-round services from Chicago O’Hare International Airport. Services commenced on 16 March 2016, with flights to Iceland operating four days a week.<ref>{{cite web|url=http://www.icelandair.us/news/story/icelandair-announces-service-from-chicago-ohare/|title=Icelandair Announces Service from Chicago O'Hare - Icelandair.us|access-date=20 July 2016|archive-date=2 October 2017|archive-url=https://web.archive.org/web/20171002195136/http://www.icelandair.us/news/story/icelandair-announces-service-from-chicago-ohare/|url-status=dead}}</ref> On 17 August 2015 Icelandair announced the augmentation of its global flight network with a new service between Keflavik and Aberdeen, the company's second Scottish destination. The new service, operated by [[Air Iceland Connect]] (a subsidiary of Icelandair Group), commenced in March of the following year, with flights scheduled four times per week.<ref>{{cite web|url=http://www.icelandair.us/news/story/icelandair-introduces-service-to-aberdeen-scotland/|title=Icelandair Introduces Service to Aberdeen, Scotland - Icelandair.us|access-date=20 July 2016|archive-date=2 October 2017|archive-url=https://web.archive.org/web/20171002202252/http://www.icelandair.us/news/story/icelandair-introduces-service-to-aberdeen-scotland/|url-status=dead}}</ref>

Icelandair commenced scheduled flights to [[Orly Airport|Paris Orly Airport]] beginning on 29 March 2016.<ref>{{cite web|url=http://www.icelandair.us/news/story/icelandair-adds-flights-to-paris-orly-airport/|title=Icelandair Adds Flights to Paris Orly Airport - Icelandair.us|access-date=20 July 2016|archive-date=13 May 2016|archive-url=https://web.archive.org/web/20160513083300/http://www.icelandair.us/news/story/icelandair-adds-flights-to-paris-orly-airport|url-status=dead}}</ref> Services to [[Montréal–Trudeau International Airport|Montréal–Trudeau Airport]] began on 26 May 2016.<ref>{{cite web|url=http://www.torontosun.com/2015/08/19/icelandair-to-launch-seasonal-service-from-montreal-in-may|title=Icelandair to launch seasonal service from Montreal in May|agency=The Canadian Press|access-date=20 July 2016}}</ref> In September 2016, Icelandair announced services to [[Philadelphia International Airport|Philadelphia]], US, starting in May 2017 and [[Tampa International Airport|Tampa]], US starting in Sep 2017.<ref>{{cite web|url=http://www.icelandnaturally.com/article/icelandair-now-taking-philadelphia-and-tampa|title=Icelandair Is Now Taking Off From Philadelphia and Tampa}}</ref>

In May 2017, Icelandair unveiled a glacier-themed special livery on Boeing 757-200 (registration TF-FIR) named Vatnajökull, the name of Europe's largest glacier. The special livery was created to commemorate Icelandair's 80th anniversary.<ref>{{Cite news|url=https://www.telegraph.co.uk/travel/news/icelandair-vatnajokull-glacier-plane/ |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/travel/news/icelandair-vatnajokull-glacier-plane/ |archive-date=12 January 2022 |url-access=subscription |url-status=live|title=Is this the world's coolest plane?|work=The Telegraph|access-date=2017-05-22|language=en-GB}}{{cbignore}}</ref><ref>{{Cite web|url=http://www.icelandair.us/vatnajokull/|title=Vatnajökull {{!}} Icelandair|website=www.icelandair.us|language=en|access-date=2017-05-22}}</ref> In August 2017, Icelandair announced service five days per week to [[Cleveland Hopkins International Airport|Cleveland]], US, which began on 16 May 2018.<ref>{{cite web|title=Icelandair to connect Cleveland to Europe|url=http://www.icelandair.us/news/story/icelandair-connects-cleveland-to-europe/|website=Icelandair.us|access-date=23 August 2017}}</ref> The route was cut in early 2019.<ref>{{cite web|title=Icelandair cancels service from Cleveland, cites Boeing 737 Max 8 woes|url=https://www.cleveland.com/news/2019/03/icelandair-cancels-service-from-cleveland-cites-boeing-737-max-8-woes.html#:~:text=CLEVELAND%2C%20Ohio%20%E2%80%93%20Icelandair%20is%20canceling,737%20Max%208%20plane%20exclusively.|website=cleveland.com|access-date=16 December 2021}}</ref>

Since the 1960s, Icelandair has offered passengers travelling on transatlantic flights between North America and Europe an opportunity to [[Layover|stopover]] in Iceland for up to seven days, at no additional cost.<ref>{{cite web|url=http://www.icelandair.us/flights/stopover/|title=Explore Iceland on an Icelandair Stopover - Icelandair|access-date=20 July 2016}}</ref>

On 9 January 2018, Icelandair announced that it would provide three non-stop flights a week from Kansas City International Airport to Keflavík International Airport, which commenced on 25 May 2018.<ref>{{cite web|url=https://www.icelandair.com/blog/icelandair-is-going-to-kansas-city/|title=Icelandair announces service to Kansas City International Airport (MCI) - Icelandair|website=www.icelandair.com|access-date=27 March 2019}}</ref> Icelandair commenced four weekly flights to and from Dallas Ft. Worth on 30 May 2018. It ended on 6 March 2019.<ref>{{cite web|url=https://www.icelandair.com/blog/icelandair-announces-service-from-dallas-fort-worth-international/|title=Icelandair Announces Service from Dallas Fort Worth - Icelandair|website=www.icelandair.com|access-date=27 March 2019}}</ref><ref>{{cite web|url=https://www.routesonline.com/news/38/airlineroute/282019/icelandair-closes-dallas-bookings-from-march-2019/|title=Icelandair closes Dallas bookings from March 2019|publisher=Routesonline|access-date=17 December 2018}}</ref>

On 5 November 2018, Icelandair announced plans to take over its low-cost competitor, [[Wow Air|WOW Air]], with the two airlines to be operated as separate brands.<ref>{{Cite news|url=https://www.flightglobal.com/news/articles/icelandair-group-to-take-over-budget-rival-wow-air-453315/|title=Icelandair Group to take over budget rival Wow Air|date=2018-11-05|work=Flightglobal.com|access-date=2018-11-05|language=en-GB}}</ref> On 29 November, Icelandair abandoned this endeavour as the shareholders’ meeting pre-conditions were unlikely to be met.<ref>{{cite news |url= https://www.flightglobal.com/news/articles/icelandair-group-scraps-wow-air-takeover-454008/ |title= Icelandair Group scraps Wow Air takeover |date= 29 Nov 2018 |author= David Kaminski-Morrow |work= Flightglobal}}</ref>

On 18 September 2020, the company's share capital was increased with the issue of 23,000,000,000 new shares with a nominal value of 1 [[Icelandic króna]] following a public share offering.<ref>{{Cite web |title=Icelandair Group hf. – Increase in share capital |url=https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=956471&lang=en |access-date=2021-02-04 |website=newsclient.omxgroup.com}}</ref> In addition, the Icelandic government decided to guarantee a line of credit for Icelandair. The guarantee amounts to $120 million.<ref>{{Cite web|title=Icelandair Group hf.: Government Guaranteed Credit Facility Approved by the Icelandic Government|url=https://www.government.is/diplomatic-missions/embassy-article/2020/08/18/Icelandair-Group-hf.-Government-Guaranteed-Credit-Facility-Approved-by-the-Icelandic-Government/|access-date=2021-02-04|website=www.government.is|language=en-US}}</ref>

On 16 March 2021, domestic flights operated by [[Air Iceland Connect]] (a wholly owned subsidiary of the [[Icelandair Group]]) merged under Icelandair branding while retaining its existing [[air operator's certificate]].<ref>{{Cite web|date=2021-03-09|title=Air Iceland Connect to disappear|url=https://www.ruv.is/frett/2021/03/09/air-iceland-connect-to-disappear|access-date=2021-03-09|website=RÚV|language=is}}</ref><ref>{{Cite web |title=Air Iceland Connect sameinað Icelandair |url=https://www.mbl.is/vidskipti/frettir/2020/03/31/air_iceland_connect_sameinad_icelandair/ |access-date=2024-12-08 |website=www.mbl.is |language=is}}</ref>

Icelandair announced the launch of a new route to [[Istanbul Airport|Istanbul]], operating four times a week beginning September 5, 2025.<ref>{{Cite web |title=This Budget Airline Is Making It Easier to Get to Turkey — What to Know |url=https://www.travelandleisure.com/icelandair-istanbul-turkey-southwest-airlines-8746168 |access-date=2024-11-15 |website=Travel + Leisure |language=en}}</ref> In January 2025, Icelandair was reported to be launching a non-stop flight between [[Reykjavík|Reykjavik]] and [[Miami]] with three weekly flights starting in January 2026. The route will be serviced by its [[Airbus A321neo|Airbus A321LR]] aircraft.<ref>{{Cite web |last=Schlappig |first=Ben |date=2025-01-07 |title=Icelandair Adding Miami Flights With New Airbus A321LR |url=https://onemileatatime.com/news/icelandair-miami-flights/ |access-date=2025-01-19 |website=One Mile at a Time |language=en-US}}</ref>