Icelandair carried a record 312,000 passengers in March 2025, marking a 5% year-on-year increase, matched by a corresponding 5% rise in capacity. Despite the absence of Easter traffic—which boosted figures in March 2024—the airline maintained a strong load factor of 83.5% and an on-time performance of 84%.
Passenger distribution for the month included:
38% traveling to Iceland
18% from Iceland
37% via passengers
7% on domestic routes
Charter activity saw sold block hours rise 50%, while freight volumes grew by 3%. The airline also reported a 3% reduction in CO2 emissions per Operational Tonne Kilometre, driven by the greater use of fuel-efficient Boeing 737 MAX and Airbus A321LR aircraft.
CEO Bogi Nils Bogason highlighted strong year-round demand, including during the traditionally slower winter period, and noted robust summer booking trends from North America, Europe, and Iceland itself. While via traffic remains healthy, its share is lower due to a strategic focus on point-to-point markets.
Icelandair also expanded its partnership with JetBlue, allowing TrueBlue members to redeem miles for Icelandair flights—expected to boost U.S. demand. The airline’s Saga Premium product and Saga Club loyalty programme, which has nearly 2 million members, also continue to gain traction.
