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Icelandair
Compensation

Icelandair aircraft flying over city with clean white background and compensation banner showing passenger rights

This guide outlines your passenger rights with Icelandair under the Canadian Air Passenger Protection Regulations (APPR) enforced by the Canadian Transportation Agency (CTA) for flights to/from Canada, U.S. Department of Transportation (DOT) regulations, the Montreal Convention, and Icelandair’s General Conditions of Carriage (available at www.icelandair.com). It covers flight disruptions, baggage issues, tarmac delays, family seating, and musical instruments, ensuring compliance with applicable laws and Icelandair’s policies.

Introduction to Icelandair

Icelandair, Iceland’s largest airline, is based in Reykjavík with its main hub at Keflavík International Airport (KEF) and a secondary hub at Akureyri Airport (AEY). Operating since 1937, it serves over 25 destinations in Europe and about a dozen in North America, including Canadian cities like Toronto (YYZ) and Vancouver (YVR). Icelandair’s all-Boeing fleet offers Saga Class (Business), Economy Comfort, and Economy Class. As a Large Carrier under the APPR, Icelandair adheres to APPR, DOT regulations, the Montreal Convention, and its Conditions of Carriage to ensure transparent communication, support, and compensation during disruptions.
 

Key Services
 

  • Network: Non-stop flights to Europe and North America, with a free stopover option in Iceland.
     

  • Cabin Classes: Saga Class, Economy Comfort, and Economy, with access to the Saga Lounge at KEF for premium passengers.
     

  • Loyalty Program: Saga Club for earning and redeeming points.
     

  • Accessibility: Services for passengers with disabilities, unaccompanied minors (5–11 years, with escort service), and pet transportation (subject to restrictions).
     

  • Commitment: Timely updates and assistance during disruptions, per APPR, DOT, and Icelandair policies.

Icelandair aircraft at airport with key services icons including network cabin classes Saga Club loyalty program and accessibility

Your Rights During Flight Delays

For Icelandair flights to, from, or within Canada delayed by 2 hours or more:
 

  • Prompt Communication: Updates every 30 minutes on delay reasons (e.g., mechanical issues, crew scheduling) via website, call center, SMS, email, or airport announcements, with accessible formats for passengers with disabilities.
     

  • Standards of Treatment: (within Icelandair’s control or required for safety, notified <12 hours before departure, after 2 hours past scheduled departure):
     

2+ Hours Delay: 

  • Meals and refreshments in reasonable quantities based on wait time, time of day, and location (e.g., meal vouchers).
     

  • Access to communication (e.g., free Wi-Fi, phone calls, or emails, where feasible).


Overnight Delay:

  • Hotel or comparable accommodation within a reasonable distance from the airport (subject to availability).
     

  • Free transportation to/from accommodation and the airport.
     

  • Alternate Arrangements: (for delays of 3 hours or more):
     

    • Within Icelandair’s Control or for Safety: Free rebooking on the next available Icelandair flight within 9 hours to the ticketed destination via a reasonable route, including transport to a nearby airport if needed. If unavailable, rebooking on a partner airline (e.g., via codeshare agreements) or another carrier.
       

    • Outside Icelandair’s Control (e.g., weather, air traffic control): Rebooking within 48 hours on Icelandair or another carrier if not possible.
       

    • Refunds: If travel no longer serves a purpose or no alternate itinerary is offered, a full refund for unused ticket portions and ancillary services (e.g., baggage fees, seat selection) within 7 days (credit card) or 20 days (cash/check) to the original payment method, or a return flight to your point of origin if stranded.
       

Compensation for Delays

(within Icelandair’s control, not required for safety, notified ≤14 days):

 

  • 3-6 Hours: CAD 400.

  • 6-9 Hours: CAD 700.

  • 9+ Hours: CAD 1000.
     

Exclusions: No compensation for delays outside Icelandair’s control (e.g., weather, strikes), if informed ≥15 days in advance, for non-public fares, or if compensated under another regime (e.g., Montreal Convention). For international flights, the Montreal Convention may provide up to 1,519 Special Drawing Rights (~CAD 2,780) for expenses.

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Your Rights During Flight Cancellations

When Icelandair cancels a flight to, from, or within Canada:

 

  • Prompt Notification: Updates within 30 minutes of cancellation reasons (e.g., operational decisions, safety issues) via website, call center, SMS, email, or airport announcements, with accessible communication.
     

  • Standards of Treatment: (within Icelandair’s control or for safety, notified <12 hours, after 2 hours past scheduled departure):
     

2+ Hours Delay:
 

  • Meals and refreshments in reasonable quantities.
     

  • Access to communication (e.g., two phone calls, emails, or faxes).
     

Overnight Delay:
 

  • Hotel or comparable accommodation near the airport (for out-of-town passengers, subject to availability).
     

  • Free transportation to/from accommodation and the airport.
     

Alternate Arrangements:
 

  • Within Icelandair’s Control or for Safety: Free rebooking on the next available Icelandair flight within 9 hours, or on a partner airline or another carrier if not possible, via a reasonable route, including transport to a nearby airport.
     

  • Outside Icelandair’s Control: Rebooking within 48 hours on Icelandair or another carrier.
     

  • Refunds: Full refund for unused ticket portions and ancillary services if travel no longer serves a purpose or no alternate itinerary is offered, or return to your point of origin, issued within 7 days (credit card) or 20 days (cash/check).
     

Compensation for Cancellations

(within Icelandair’s control, not for safety, notified ≤14 days):

 

  • 3-6 Hours Delay: CAD 400.

  • 6-9 Hours Delay: CAD 700.

  • 9+ Hours Delay: CAD 1000.
     

Exclusions: No compensation for cancellations due to Force Majeure Events, if notified ≥15 days in advance, or if compensated elsewhere. Claims must be filed within one year.

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Your Rights During Missed Connections

If an Icelandair delay or cancellation causes a missed connection:

 

  • Communication: Updates within 30 minutes via email, SMS, website, or airport staff, with accessible communication.
     

  • Standards of Treatment (within Icelandair’s control or for safety, notified <12 hours, after 2 hours past scheduled departure):
     

2+ Hours Delay:
 

  • Food and drink in reasonable quantities.

  • Access to communication (e.g., two phone calls, emails, or faxes).
     

Overnight Delay:
 

  • Hotel or comparable accommodation near the airport (for out-of-town passengers, subject to availability).

  • Free transportation to/from accommodation and the airport.
     

Alternate Arrangements:

 

  • Free rebooking on the next available Icelandair flight within 9 hours (within control) or 48 hours (outside control) to your destination, or on a partner airline or another carrier if not possible, including transport to a nearby airport. Rebooking is under comparable conditions, with refunds for lower-class seating or no payment for higher-class seating.
     

  • Refund for unused ticket portions and ancillary services if travel no longer serves a purpose, or return to your point of origin.
     

Compensation for Missed Connections

(within Icelandair’s control, not for safety):

 

  • 3-6 Hours Delay: CAD 400.

  • 6-9 Hours Delay: CAD 700.

  • 9+ Hours Delay: CAD 1000.
     

Exclusions: Compensation applies only if Icelandair is responsible. No compensation for weather, security issues, or if compensated elsewhere.

Additional Notes: For codeshare flights, the operating carrier handles compensation and rebooking.

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Your Rights During Denied Boarding

If involuntarily denied boarding due to overbooking or operational constraints on an Icelandair-operated flight:

 

  • Immediate Communication: Explanation of reasons (e.g., overbooking, aircraft change) and a written statement of rights via gate agents or notices within 30 minutes, with accessible communication.
     

  • Volunteer Process: Icelandair seeks volunteers to relinquish seats for compensation (e.g., travel vouchers or cash, typically USD/CAD 200–400 based on delay). Volunteers are not entitled to APPR compensation.
     

  • Standards of Treatment (within Icelandair’s control or for safety, before boarding an alternate flight):
     

2+ Hours Delay:
 

  • Food and drink in reasonable quantities.

  • Access to communication (e.g., two phone calls, emails, or faxes).
     

Overnight Delay:
 

  • Hotel or comparable accommodation near the airport (for out-of-town passengers, subject to availability).

  • Free transportation to/from accommodation and the airport.
     

Alternate Arrangements:
 

  • Within Icelandair’s Control or for Safety: Free rebooking on the next available Icelandair flight within 9 hours, or on a partner airline or another carrier if not possible, including transport to a nearby airport.
     

  • Outside Icelandair’s Control: Rebooking within 48 hours on Icelandair or another carrier.
     

  • Refunds: Full refund for unused ticket portions and ancillary services if travel no longer serves a purpose, or return to your point of origin, issued within 7 days (credit card) or 20 days (cash/check).
     

  • Boarding Priorities: Priority is given to: unaccompanied minors, passengers with disabilities and their support persons/service animals, families, and passengers previously denied boarding on the same ticket. Boarded passengers are not removed except for safety reasons.
     

Compensation for Denied Boarding (within Icelandair’s control, not for safety):
 

  • 3-6 Hours Delay: CAD 900.

  • 6-9 Hours Delay: CAD 1800.

  • 9+ Hours Delay: CAD 2,400.
     

Exclusions: No compensation for safety, security, health, lack of travel documents, non-compliance with check-in rules, or if compensated under another regime. Claims must be filed within one year. Passengers already boarded are not denied boarding unless required for safety.

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Your Rights for Baggage Issues

For lost, delayed, or damaged baggage:

 

  • Prompt Communication: Report issues at the airport Baggage Service Desk to file a Mishandled Baggage Report (MBR). Submit a detailed claim within 7 days (damaged baggage) or 21 days (delayed/missing baggage) via Icelandair's customer service page 
     

  • Compensation:
     

    • International Flights (Montreal Convention): Up to 1,519 Special Drawing Rights (~CAD 2,780) per passenger for loss, damage, or delay.
       

    • Domestic Flights (U.S. DOT): Up to CAD 2,350 for loss or damage, with documented proof of actual loss.
       

  • Delayed Baggage: Refund of baggage fees if delayed ≥24 hours; Compensation for delayed baggage is covered under the Montreal Convention, up to 1,519 SDR (~CAD 2,800–3,000), based on actual expenses with receipts.
     

  • Lost or Damaged Baggage: Up to CAD 2,350 (domestic) or 1,519 SDRs (international), with baggage fee refunds.
     

  • Wheelchairs/Mobility Aids: Full replacement value if lost/damaged, without liability limits; repairs offered if feasible.
     

Process:
 

  • Submit claims with the MBR, boarding pass, baggage tag, receipts, and bank details via service@icelandair.is or Icelandair, P.O. Box 40501, 105 Reykjavík, Iceland.
     

  • Court action for lost/damaged baggage must be filed within 2 years of the incident.
     

Exclusions: No liability for fragile items (e.g., electronics, glassware), perishables, valuables (e.g., passports, jewelry), or items not securely packed (e.g., surfboards, bicycles). No liability for cabin baggage or interline transfers not accepted by Icelandair.

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Icelandair baggage issues infographic with airport baggage service desk suitcases and icons explaining lost delayed and damaged luggage rights compensation

Tarmac Delays

Your Rights During Tarmac Delays

For tarmac delays at Canadian airports after doors close for takeoff or after landing:

 

  • Communication: Updates every 30 minutes via onboard announcements, email, or SMS, with accessible communication (e.g., larger font, email notices) for passengers with disabilities.
     

  • Care After 90 Minutes:
     

    • Food and drink in reasonable quantities based on delay length and time of day.

    • Access to working lavatories (if equipped).

    • Proper ventilation, heating, or cooling.

    • Communication with people outside the aircraft (where feasible).

    • Medical assistance if needed.
       

  • Disembarkation:
     

  • U.S. Airports: After 3 hours (domestic) or 4 hours (international), passengers can disembark unless takeoff is imminent within 30 minutes and standards of treatment are maintained.

  • Canadian Airports: After 3 hours, return to the gate unless takeoff is imminent within 45 minutes.

  • Priority disembarkation for passengers with disabilities and their support persons or service animals.
     

Exclusions: Disembarkation may not be possible due to safety, security, air traffic control, or customs issues.

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Reimbursement of Expenses

Your Rights for Reimbursement of Expenses

When Icelandair causes flight delays, cancellations, or delayed baggage within its control:
 

  • Eligible Expenses: Reasonable costs for essentials (e.g., meals, toiletries, clothing) due to delays over 2 hours (notified <12 hours), cancellations (notified <14 days), or delayed baggage (≥24 hours, Compensation for delayed baggage is covered under the Montreal Convention, up to 1,519 SDR (~CAD 2,800–3,000), based on actual expenses).
     

  • Submission Process: Submit itemized receipts with expense details, passenger names, flight details, and bank details via service@icelandair.is or Icelandair, P.O. Box 40501, 105 Reykjavík, Iceland.
     

  • Standards of Treatment: Reimbursement for reasonable expenses (e.g., meals for 2+ hour delays, hotel/transport for overnight delays) if not provided by Icelandair.
     

Reimbursement Limits
 

  • Delayed Baggage: Compensation for delayed baggage is covered under the Montreal Convention, up to 1,519 SDR (~CAD 2,800–3,000).
     

  • Flight Delays/Cancellations: Reasonable expenses based on delay duration, location, and time of day.
     

Note: Expenses due to Force Majeure Events (e.g., weather, air traffic control) are not reimbursable.

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​Start Your IcelandAir Airlines Compensation Claim Today

Start Your Icelandair Compensation Claim Today

You could be entitled to up to $1000 CAD compensation for flight delays, cancellations, or denied boarding. Check your eligibility and start your claim in under 5 minutes—no win, no fee.

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