Annual and Sustainability Report 2022
Passenger route network

Our extensive passenger network

After a few challenging years, we are back on track and committed to our mission of offering smooth and enjoyable journeys to, from, via and within Iceland, our hub and home. The year 2022 was a turnaround year for Icelandair, where we used our flexibility to rapidly increase our capacity to meet increasing demand in all our markets. Despite the continued impact of the pandemic at the beginning of the year, demand increased in the summer when our route network recovered to an equivalent size as in 2016 and 2017.


We offer smooth and enjoyable journeys to, from, via and within Iceland - our hub and home

After a few challenging years, 2022 was a year of successful turnaround.

Capacity in the passenger network more than doubled

Our passenger flight schedule, as measured in available seat kilometers, more than doubled compared to 2021 and equaled 79% of 2019 levels. The capacity increased gradually over the year from 58% of 2019 capacity levels in the first quarter to 95% of 2019 levels in the fourth quarter. We offered flights to 51 destinations, compared to 40 in 2021, and added three new destinations to the network: Raleigh Durham in USA and Rome and Nice in Europe. In addition, our flights to Greenland were moved from Reykjavik airport to Keflavik airport, better connecting our regional operations to our international network.

3.7 million passengers carried in 2022

The total number of passengers on international and domestic flights was around 3.7 million in 2022, 2.2 million more than in 2021. The “to” market with Iceland as a destination was our largest market in 2022 and accounted for 41% of total passengers. The successful ramp-up of our operations has been essential for the recovery of the Icelandic tourism industry and the Icelandic economy during the year. The “from” market, with travel originating in Iceland, accounted for 15% of our total passengers. The “via” market between Europe and North America accounted for 37% of total passengers compared to 23% in 2021. The domestic operation “within” Iceland accounted for 7% of total passengers. The passenger load factor over the year 2022 was at 80%, up by 15 percentage points between years.

Load factor

Number of passengers per market

Challenging conditions at airports affected on-time-performance

Like whole aviation industry as a whole, we experienced challenging conditions at airports, and issues with supply chains caused flight disruptions over the summer peak in addition to severe weather conditions towards the end of the year.

With an extensive flight schedule, high frequency of flights, and the resourcefulness of our employees, we were in a strong position to respond to these challenges. The on-time performance for the year was 73.5% compared to 84.0% in 2021.

In the baggage handling crisis last summer, we flew our own baggage handlers to Amsterdam Schiphol airport to help out and to ensure the best service to our passengers. It was a great experience to be part of this amazing team and get to know our colleagues at Schiphol. I know this decision really made a difference and it is a clear example of the true problem-solving spirit of Icelandair.

Tomasz Wieslaw Wierzbicki

Ramp Lead Agent at Keflavik Airport


Performance in 2022 driven by record revenues

The close cooperation between the Network and Revenue functions has been crucial during the ramp-up. We utilized time well during the pandemic to prepare our revenue strategy and processes in alignment with our network strategy. Building on our robust and flexible route network and our agile and experienced team, we managed to maintain our position among the dynamic international competition and generate record months in terms of revenue, load factor and the highest RASK (Revenue per Available Seat Kilometer) in recent years. We changed the pricing strategy of our Saga Premium business class product, increasing our unit revenues by 48% on this product, which was a key driver in this success.

Largest flight schedule in Icelandair’s history in 2023

Icelandair's prospects for 2023 are favorable. We will offer the highest number of destinations, the largest number of frequencies, and by far the highest connectivity in Icelandair’s history. Measured in available seat kilometers, our flight schedule is set to grow by 15-20% in 2023 compared to 2022.

The primary growth of the flight schedule results from increased frequencies to current destinations like Paris, Stockholm, Boston, and Chicago but also includes four new destinations, bringing the total number of destinations served to 54.

Four exciting new destinations in 2023

Our new destinations in 2023 are Detroit in North America, Prague and Barcelona in Europe, and Tel Aviv in Israel. Barcelona and Tel Aviv fully connect into our network due to the development of our multi-bank structure, creating more connectivity than ever before. In addition, Crete has been added to Icelandair's route network after having been operated as a popular charter flight destination for several years. Over 785 origin and destination markets are served within the network and countless others through partnerships. Forty aircraft will be utilized in the route network in summer 2023, five more than in summer 2022.