09 January, 2024

Icelandair reports passenger numbers increased by 17% in 2023

In December 2023, Icelandair transported nearly 264,000 passengers, a 13% increase compared to December 2022. In the full year of 2023, the Company transported 4.3 million passengers, 17% more than in 2022.

In December, 30% of passengers were travelling to Iceland, 17% from Iceland, 45% were via passengers and 7% were travelling within Iceland. Seismic activity and volcanic eruption in the Southwest of Iceland had no impact on Icelandair’s flight schedule in December but international media coverage of these events negatively affected passenger demand, primarily on the market to Iceland. Despite that, load factor remained similar to December last year at 72.4%. On-time performance was 67%. On time performance and the number of passengers in December was significantly affected by the industrial action of Icelandic Air Traffic Controllers.

Bogi Nils Bogason, President & CEO of Icelandair said:   “In 2023, the number of passengers continued to increase, reaching similar numbers as in the record year 2019. This is the result of the tireless work and dedication of the Icelandair team throughout the year. I would like to thank them for their efforts during the year.

Looking ahead, we are excited for the year 2024. 

We will fly to over 50 destinations in our route network and thereof three new destinations – Faroe Islands, Pittsburgh and Halifax. Our fleet renewal will continue where the highlight is the introduction of brand-new Airbus aircraft into our fleet next autumn, in addition to many other projects such as moving to our new headquarters before the end of the year.”

Icelandair and SMBC have signed a long-term lease agreement for one Airbus A321LR aircraft scheduled to be delivered in the first quarter of 2026. This will be the fifth A321LR aircraft leased from SMBC. As previously announced, Icelandair signed a contract with Airbus for up to 25 Airbus A321XLR aircraft in July 2023 as well as a long-term lease agreement with SMBC for four new A321LR aircraft.

The Airbus A321LR and XLR aircraft will be the future replacement of Icelandair’s fleet of Boeing 757s. Deliveries of the LR aircraft will begin in 2024, and XLR deliveries will start in 2029.