Icelandair has announced several developments since the start of September, all with a view to expanding the airline and its operations. These developments include the signing of a lease agreement for two more Airbus A321LR narrowbodies and the commencement of a new route between Iceland and Edinburgh, Scotland. Lastly, the carrier has announced that its CEO, Bogi Nils Bogasson, will also become its COO for the time being.
On September 12, 2025, the airline revealed that it had signed lease agreements with the lessor CALC (China Aircraft Leasing Group) for two brand-new A321LR aircraft. The new additions will join others of the type either already operated by the airline or due to be delivered in the coming years. All the Airbus A321LRs being acquired are being used to replace the carrier’s once sizeable Boeing 757 fleet. The company once had 37 of the type, but this is now down to 11, with new Boeing 737 MAX 8s also replacing some of the larger 757s on key routes.
“This [lease agreement] marks the beginning of a new partnership between Icelandair and CALC, based on a shared vision and long-term collaboration,” said an Icelandair statement. “The A321LR offers extended range, improved fuel efficiency, and reduced emissions compared to the 757s, aligning with Icelandair’s sustainability goals, as well as enhancing passenger comfort with Airbus’ award-winning Airspace cabin design.”
According to the airline, the new aircraft will be delivered directly from Airbus in the winter season of 2026/2027 and will join Icelandair’s growing fleet of Airbus A321LRs, which currently stands at four airplanes.
“We are excited to welcome CALC as a new partner in our fleet development journey,” said Bogi Nils Bogason, CEO of Icelandair. “The addition of these two Airbus A321LR aircraft supports our strategy to modernize our fleet with new, more efficient aircraft. Furthermore, it reflects our commitment to delivering an exceptional travel experience while strengthening our route network.”
Icelandair’s relationship with Airbus goes back to April 2023, when the carrier announced that it had signed a Memorandum of Understanding with Airbus for the purchase of 13 Airbus A321XLR aircraft with purchase rights for an additional 12 aircraft. The aircraft deliveries will start in 2029. However, the carrier is leasing several A321LRs to fill the gap, and so far, it has four leased Airbus A321LRs for that purpose.
In January 2024, Icelandair and CDB Aviation signed long-term lease agreements for two new Airbus A321LR aircraft, scheduled for delivery in the second half of 2025. The addition of the CALC aircraft will bring the A321LR fleet to six, providing the airline with more capability and flexibility in its network. The aircraft are being used to provide more capacity on European routes, which is also opening up new routes across the US and Canada.
Heading back to Scotland
On September 12, 2025, Icelandair launched a new service between Edinburgh and Iceland, adding the Scottish capital to the airline’s expanding network. Icelandair will offer either three or four flights a week to Edinburgh. Initially planned as a seasonal service, the route has now been upgraded to year-round due to strong reception from customers.
The route will be operated by a Boeing 737 MAX 8 aircraft, with a flying time of two hours 20 minutes to Edinburgh (EDI) and two hours 35 minutes back to Keflavik-Reykjavik Airport (KEF). According to the carrier, “The flight times for the route ensure that passengers can connect seamlessly onto Icelandair’s extensive global network, with the airline serving 18 destinations in North America, playing a vital role in bringing Iceland to the world and vice versa.”
“The route launches following the 80th anniversary of Icelandair commencing flights to Scotland this year, a journey that began a legacy of connecting the two great countries as part of the airline’s first international service. Edinburgh becomes Icelandair’s second Scottish route to the Icelandic capital Reykjavik, joining Glasgow and further strengthening the airline’s presence in the region,” said the airline’s statement.
Also, earlier in September, the carrier announced that Sylvía Kristín Ólafsdóttir would be stepping down as Chief Operating Officer of Icelandair. While the recruitment drive to replace Ólafsdóttir is ongoing, Bogi Nils Bogason, the CEO, will temporarily take over the position of Chief Operating Officer alongside the CEO position until the appointment has been finalized.
