Iceland-based flag carrier Icelandair will end all widebody flying before retiring its fleet of Boeing 767-300ER aircraft by the end of 2026, ultimately accelerating a plan that previously saw the jet staying in service all the way until 2029. This move follows sustained losses tied to a small, aging subfleet, and it simplifies Icelandair's operations around the two narrowbody families that it operates. A single major hub in Keflavik feeds the airline's network.

The airline will also trim its remaining Boeing 757 fleet as part of a large-scale strategic reset. From a strategic perspective, this concentrates capacity where Icelandair competes at its best. This is in terms of high-frequency transatlantic and European services that are suited to the operations of single-aisle aircraft. T

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