Icelandair cancellation compensation
Compensation is due unless you were told at least 14 days before departure, or were told later but re-routed on a flight that fell inside the timing windows set by Article 5(1)(c). You are also entitled to choose between a full refund and a replacement flight, whatever the notice.
Which Icelandair flights are covered
Icelandair is registered in Iceland, so it counts as an EU carrier and its flights are covered in both directions.
- Departing an EU airport: covered by EU261.
- Departing a UK airport: covered by UK261.
- Arriving in the EU from outside Europe: covered by EU261, because Icelandair is an EU carrier.
- Arriving in the UK from outside Europe: covered by UK261, which also protects arrivals on EU carriers.
Worked examples on Icelandair routes
| Route | Distance | Rules | Per passenger |
|---|---|---|---|
| Reykjavík (KEF) → Paris (CDG) | 2,241 km | EU261 | €400 |
| Reykjavík (KEF) → Barcelona (BCN) | 2,981 km | EU261 | €400 |
| Reykjavík (KEF) → Rome (FCO) | 3,319 km | EU261 | €400 |
| Reykjavík (KEF) → Amsterdam (AMS) | 2,038 km | EU261 | €400 |
What Icelandair is likely to say — and the answer
“You were offered an alternative flight” — only relevant if it fell inside the Article 5 windows. Check the departure and arrival times.
“We told you in advance” — the question is whether it was 14 days or more, counted from when you were actually informed.
“Operational reasons” — not a category in the Regulation.
A voucher offered instead of money — you are entitled to be paid in money.
Specific to Icelandair
Iceland is in the EEA, so the Regulation applies to departures from Keflavík and Icelandair counts as an EU carrier for arrivals into the EU and UK.
Their entire business model is connecting Europe to North America through Keflavík on a single booking, which makes missed connections the most common claim type — measured at the North American destination.
Keflavík has real weather exposure and genuine volcanic disruption. Both can be extraordinary circumstances, and both still require the airline to show it minimised the resulting delay.
A Europe–Keflavík–North America itinerary on one booking is over 3,500 km end to end, so the €600 band usually applies even though each leg is shorter.
Check it free, then send the letter yourself.
If your Icelandair cancellation appears eligible, the claim letter is £15 flat, with Icelandair’s likely objection answered in advance. You keep 100% of what they pay. If the airline rejects your claim on eligibility grounds, we refund the £15. Forward us their reply and we refund within five working days.
Icelandair cancellation: common questions
How much can I claim from Icelandair for a cancellation?
Between €250 and €600 (or £220 and £520 under UK261) per passenger, depending on distance. The worked examples on this page show the figure for some of Icelandair’s routes.
Icelandair cancelled my flight and put me on another one. Can I still claim?
Possibly. If you were told less than 14 days before, the airline only escapes compensation if the replacement fell inside strict windows — for example, with under 7 days’ notice, departing no more than an hour early and arriving less than two hours late. Outside those windows, compensation is due, although it can be halved if you arrived within 2, 3 or 4 hours depending on distance.
What reasons does Icelandair give for refusing cancellation claims?
The most common are: You were offered an alternative flight; We told you in advance; Operational reasons; A voucher offered instead of money. Most of these do not hold up against the Regulation or the case law.
How long do I have to make a Icelandair cancellation claim?
It depends on where you bring the claim, usually where the flight departed or arrived. Six years in England and Wales; two to five years in most EU countries.
Other Icelandair claims
- Icelandair: delayCompensation is due when you arrive at your final destination 3 hours or more after the scheduled arrival time.
- Icelandair: cancellationCompensation is due unless you were told at least 14 days before departure, or were told later but re-routed on a flight that fell inside the timing windows set by Article 5(1)(c).
- Icelandair: denied boardingCompensation is due immediately when you are refused boarding against your will — most often because the flight was overbooked — provided you checked in on time with a confirmed reservation.
- Icelandair: missed connectionWhere all your flights were on a single booking, a delay that makes you miss a connection is measured at your final destination.