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Iceland Air based on Reykjavik and is the largest Icelandic Airline. On both sides of the Atlantic, it operates services to 21 cities in 12 countries. Keflavik International airport is its main base. Iceland Air is a part of FL GROUP. For their international routes, Iceland Air relied on Douglas DC-8. To operate domestic and some short-haul routes, airline established a subsidiary Air Iceland.

From the United States to Europe and Vice Versa, air traffic flies over Iceland. For people travelling from US to Europe and vice versa, Iceland Air made Iceland aa a transfer point and they used this to their advantage. At no extra cost, Iceland Air offers stopover packages in Iceland on its transatlantic flights. This accounts for about 50 percent of the company's passenger traffic.

IcelandAir fleet consists of the following aircraft

  • 10 Boeing 757-200
  • 1 Boeing 757-300
  • 1 Boeing 767-300
  • 0 Boeing 787 (2 on order)

On all boeing fleet, Iceland Air operates. Iceland Air signed a contract for two Boeing 787s for delivary in 2010 and purchase rights for 5 more on February 28, 2005. Iceland Air flew 1,332,802 passengers on scheduled flights in 2004, with an associated seat-load factor of 74.5%.

With a new company, the airline is expanding into charter services that reuses the old name Loftleioir. 6 Boeing 757-200s and 3 Boeing 767-300s are now operated by Loftleioir Icelandic. The company has 15 Boeing 737-800s on order. To other companies, these aircrafts will be leased.

One of Europe's most progressive and dynamic airlines with over 65 years' aviation experiance is Iceland Air. It offers daily and regular scheduled services to Europe and North America by Operating from hub at Keflavik Airport.

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