October 23, 2026 — Icelandair posted record third-quarter revenue and a 62% jump in operating profit, but now expects a full-year operating loss because of high fuel costs. It is trimming winter capacity and moving its remaining Boeing 757s to Malta ahead of their accelerated retirement.
The numbers (Q3 2026)
| Measure | Result |
|---|---|
| Revenue | $655 million, up 12%, on 6% less capacity |
| EBIT (operating profit) | $120.3 million, up 62%; margin 18.4% |
| Load factor | 86.5%, up 0.6 points |
| Passengers | Down 3% overall; to Iceland +8%, from Iceland +11%, connecting −20% |
| On-time performance | 81.2%, down 1.9 points |
| Fuel expense | $131.5 million, up 11% |
| Liquidity | $550 million at quarter-end |
Outlook and network
- Full-year 2026: operating (EBIT) loss of $20–30 million expected. The company also expects a fourth-quarter loss, citing fuel prices, currency moves and industrial action.
- Winter capacity: down 4% in the fourth quarter of 2026 and 8% in the first quarter of 2027, compared with the original schedules.
- Summer 2027: Madrid and St. Louis join the network, but overall capacity will be slightly lower.
Fleet: 757s to Malta
FlightGlobal reports that Icelandair will move its remaining 757s to Malta ahead of their early retirement. It expects a simpler fleet of 737 MAX and A320neo-family jets to open “a lot of opportunities.” The 767s are also being phased out faster. Icelandair said in June that it would retire its eight 757-200s during winter 2026–27, months earlier than planned. The exact date for the last 757 flights is TBA. The first A321XLR is expected before summer 2029.
What it means for non-revs
- Fewer seats this winter. With capacity cut 4% in Q4 and 8% in Q1 versus plan, and loads already at 86.5% in Q3, standby across the Atlantic via Keflavík may be harder. Check loads before you commit to a trip.
- Last chance for 757 fans. If you want one more Icelandair 757 flight, this winter looks like the window. Final dates are TBA.
- Strike risk to watch: Icelandair named industrial action as a factor in its loss outlook. No new strike dates have been announced (TBA). Check the news before you travel.
Sources
- Investing.com — Icelandair Q3 2026 slides: record revenue, tough winter ahead
- FlightGlobal — Icelandair eyes fleet-renewal benefits as it moves remaining 757s to Malta
- TradingView — Icelandair Group hf. (ICEAIR) Expects Q4 and FY26 Loss
- AirData News — Icelandair to retire Boeing 757 fleet earlier as fuel costs reshape network (June background)
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