Icelandair achieved a record passenger load factor in May 2026 as demand for travel to and from Iceland continued to strengthen, helping the carrier maintain growth despite elevated fuel costs and changing market dynamics.
The airline carried 464,000 passengers during the month, representing a 4% increase compared with May 2025.
Record Load Factor Reached
Icelandair reported a load factor of 83%, the highest ever recorded by the airline for the month of May and an increase of 3.4 percentage points year-on-year.
The result reflects strong demand across the network and successful capacity management during what is traditionally a transitional period ahead of the peak summer season.
On-time performance reached 82.3% during the month.
Growth Driven by Iceland Travel
The airline continued to focus on higher-yielding traffic flows to and from Iceland.
Passengers traveling to Iceland increased by 8% compared with the previous year, while outbound travel from Iceland grew by 24%.
Connecting traffic, which remains a key part of Icelandair’s business model, accounted for 45% of total passengers but declined by 5% year-on-year.
Passenger distribution during May consisted of 30% inbound travelers to Iceland, 19% outbound passengers from Iceland, 45% connecting passengers and 5% domestic travelers.
Fleet Modernisation Improves Efficiency
The airline’s ongoing fleet renewal programme continued to deliver operational and environmental benefits.
Carbon dioxide emissions per operational tonne-kilometre declined by 8% compared with the same period last year, supported by newer aircraft, improved operational efficiency and the strong load factor.
Meanwhile, freight performance also improved, with cargo traffic measured in freight tonne kilometres increasing by 4% year-on-year.
Venice Route Receives Strong Response
Icelandair said the recent addition of Venice to its route network has been positively received by customers, further strengthening the airline’s European offering ahead of the summer travel season.
The carrier continues to expand and optimise its network while adjusting capacity to manage higher operating costs, including elevated fuel prices.
Global Interest in Iceland Remains Strong
Beyond its flight operations, Icelandair recently attracted worldwide attention through its unconventional marketing campaign seeking a “really bad photographer” to help promote Iceland’s natural beauty.
The initiative generated nearly 130,000 applications from 178 countries, highlighting the continued global appeal of Iceland as a tourism destination.
The winning applicant will participate in a campaign designed to test whether it is truly possible to take a bad photograph amid Iceland’s dramatic landscapes, waterfalls, volcanoes and glaciers.
