Icelandair Cancellation Policy

The Icelandair cancellation policy is based on what type of ticket you have purchased—refundable or non-refundable. Flex tickets (Economy Flex and Saga Premium Flex) can be cancelled and refunded, whereas Economy Light, Economy Standard, and Saga Premium tickets cannot be cancelled or refunded outside of the 24-hour grace period (see below).  To qualify for a refund, you must cancel your Icelandair flight before departure. 

Overview of Icelandair Cancellation Policy

The Icelandair flight cancellation policy is important to consider when booking your travel. Understanding the key points of this policy can help you make informed decisions and avoid any unexpected fees or complications. 

One of the main highlights of Iceland Air cancelation policy is that it offers you a 24-hour grace period during which you can cancel your booking without incurring any penalty (under certain conditions). Icelandair provides different fare types, each with its own set of rules regarding cancellations and refunds. 

The major highlights of Iceland air cancellation policy are as follows:

• Cancellation Policy for International Flights. When making a flight cancellation on an international route, remember the following points:
  • You can cancel your flight within 24 hours of booking for a full refund
    (without penalty):
    • For flights departing from the U.S. if:
      • You purchase your ticket at least 7 days before departure, and 
      • Book your ticket directly through Icelandair’s U.S. website, booking system, ticket counter, or office, and 
      • Pay your fare in U.S. dollars 
    • For non-U.S.flights if:
      • You purchase your ticket at least 48 hours before departure, and
      • Book your ticket directly through Icelandair’s booking channels (website, booking system, or ticket office/counter)

Note. This does not apply to group bookings of 10 or more passengers.

• Economy Light fares cannot be cancelled or refunded, incl. the booking fee. Only the unused portion of the airport/government taxes is refundable. 
• Economy Standard fares also cannot be cancelled or refunded. Only the unused part of airport/government taxes are refundable. If you’ve upgraded an Economy Standard fare to a Flex fare, only the differential amount paid for the upgrade is refundable (and not the original fare).
• Economy Flex fares are fully refundable, but the booking fee is non-refundable. The amount of refund will be based on the unused portion of the ticket and does not include the flown portion of the ticket. If you’ve upgraded to a Flex fare, only the difference paid for the upgrade can be refunded. 
• Saga Premium fares are non-refundable (incl. the booking fee), except for the unused portion of airport/government taxes. If you upgrade to a Flex fare, the original fare conditions will continue to apply, and only the difference paid for the upgrade is refundable. 
• Saga Premium Flex fares are fully refundable minus the booking fee and the flown portion of the ticket. Only the remaining value of a partly-used ticket will be refunded and will not include the flown portion of the ticket. If you’ve upgraded to this fare type, only the amount paid by you for the upgrade will be refunded, and not the original amount paid by you for the ticket. 
• Cancellation Policy for Domestic Flights. If you’re making a flight cancellation on a domestic flight within Iceland, remember the following points:
  • Economy Light and Economy Standard fares are non-refundable, incl. any surcharges imposed by the carrier. Only the unused portion of airport/government taxes will be refunded but do not include the booking fee. If you upgrade from Economy Standard to Flex, only the differential amount paid for the Flex upgrade is refundable. 
  • Economy Flex fares are refundable, provided you cancel before departure and haven’t upgraded from Standard Economy to Economy Flex, in which case only the upgrade fee will be refundable. 

• Cancellation Policy for Delayed Flights
  • If your flight on Icelandair is delayed by at least 5 hours, you have the option to reschedule your travel without any additional charge or cancel your flight and request a refund for the unused flight segment(s) in your itinerary.
  • If your flight is delayed by at least 3 hours, you may be eligible for compensation, depending on the length of your trip and duration of the delay (if applicable). To apply for a claim, use Icelandair‘s claim form.
• Cancellation Policy for Third-Party Bookings. If you booked your ticket via a third party (like Expedia) or a travel agent, you will need to contact them directly for a refund.
• Consider Purchasing Cancellation Protection. Purchasing Icelandair’s Cancellation Protection service (up to 36 hours after booking your ticket) allows you to cancel (or change) your flight for any reason and receive a full refund on non-refundable tickets. The cost per passenger is USD 17 within Iceland, USD 27 for Economy, and USD 47 for Saga Class.

Icelandair Cancellation Policy Due to Unavoidable Circumstances

What is Icelandair’s ticket cancellation policy if a passenger/passenger’s relative falls ill?

Icelandair ticket cancellation policy does not impose any penalty/cancellation fee in case of unavoidable circumstances, such as:

• Sudden illness, death, or accident requiring the hospitalization of yourself, or your partner, children, grandchildren, parents/parents-in-law, grandmother, grandfather, or siblings.
• Material damage (if significant) to your home or private company, which requires your presence—but only upon the presentation of a police report. 

Icelandair Flight Cancellation Policy Per the Israeli Consumer Protection Law

Per the Israeli Consumer Protection Law (5741-1981), ticket sales taking place in Israel can be cancelled within 14 days of booking but at least 7 days (excluding rest days) before the first flight’s departure date. People covered under this law include disabled persons, senior citizens, and new immigrants who have booked their tickets in Israel, and can cancel their tickets in writing:

• Within 4 months of the booking date or receipt of a document including the details listed in article 14C(b), whichever is later, and 
• At least 7 days (excluding rest days) before the date of departure

The cancellation fee will be the lower of the two—5% of the price of the ticket price or NIS 100.

This rule is applicable for transactions made by phone through Icelandair’s service center or website for flights to or from Israel. Cancellations that don’t comply with the terms above will be subject to the airline’s standard fare rules. 

To cancel your booking, you must fill out this online request form. 

Icelandair 24 Hour Cancellation Policy

Icelandair’s 24-hour cancellation policy allows you to cancel any flight: 

• Departing from the U.S. within 24 hours of booking and receive a full refund if: 

• You purchase your ticket at least 7 days before departure, and
• You purchase the ticket in U.S. dollars, and
• You purchase the ticket directly through Icelandair’s U.S. website, booking system, ticket counter, or ticket office, and 
• You reside in the U.S. 
• Departing from a non-U.S. airport if: 
  • You book your ticket no less than 48 hours prior to departure, and
  • Book directly through the airline’s website, booking system, or ticket office/counter

Note. The above cancellation fee does not include group bookings of 10 or more passengers.

How To Cancel Icelandair Flight?

If you want to cancel your ticket, you will need to fill out Icelandair’s cancellation form. However, if you purchased your ticket from a travel agent or a third party, you must contact them directly to process your cancellation request. 

Tips

• Only Economy Flex and Sage Premium Flex fares can be cancelled and refunded. 
• If you’re not sure of your fare type:
  • Check your booking confirmation email, or 
  • Go to Manage booking, enter your flight information, and find out 
  • Check if the fare rules of your ticket permit cancellation 

Icelandair Refund Policy

Icelandair refund policy is subject to the following conditions:

• Tickets booked for flights departing from the United States can be cancelled without penalty within 24 hours of booking if purchased in U.S. dollars directly from the airline’s website or other booking channels at least 7 days before departure by passengers residing in the U.S.
• Tickets for non-U.S. flights booked directly through Icelandair (website, ticketing office, call center, or ticket counter) can be cancelled without penalty within 24 hours of booking if purchased at least 48 hours before departure. This includes Holiday Packages but not group bookings of 10 or more passengers. 
• To request the refund of a ticket or any additional charge, you must fill out Icelandair’s refund form. 
• All refunds will be made minus the ticketing fee, if any. 
• To cancel a ticket booked through a travel agency or third party, you must contact the point of purchase directly to process your refund. 
• Refunds can only be made if the original ticket’s fare rules allow refunds. 
• Eligible tickets with Cancellation Protection qualify for a full refund. 
• Eligible tickets purchased by credit card will be refunded within 7 business days of submitting the full documentation. Eligible tickets purchased in cash will be refunded within 20 business days of submitting the full documentation. 

• If Icelandair cancels your flight, does not operate reasonably per schedule, does not stop at your stopover or destination, or causes you to miss a connecting flight on which you hold a confirmed booking in the same ticket, the refund amount will be:
  • Equal to the fare paid minus the booking fee if no portion of your ticket has been used.
  • At least equal to the difference between the fare paid and the fare consumed if a portion of the ticket has been used. 
• Refunds will be made to the ticket purchaser upon payment proof presentation. If the ticket has been purchased by someone other than the passenger whose name appears on the ticket and there’s a restriction on the refund, it will only be made to the ticket’s purchaser. 
• Refunds will only be made upon the surrender of a ticket for all unused flight coupons, except in the case of lost tickets. 
• For involuntary refunds (when Icelandair cancels your flight) or fails to operate as scheduled, or results in your missing a confirmed connecting flight in the same ticket, the refund will be the amount of the fare paid on the unused portion of the ticket.
• For voluntary refunds, i.e., if you cancel your ticket for reasons other than those mentioned above, the amount of refund will be according to the fare rules of the ticket minus the applicable service charges and service fees if the ticket is fully unused. If a portion of the ticket has been used up, the refund will be the fare difference between that which you paid and that which you consumed minus the applicable cancellation charges and service fee.  
• Voluntary refunds will only be made by the carrier (or authorized agent) which issued the ticket originally.
• Refunds will be made in the currency in which the ticket was purchased, subject to government regulations of the country where the ticket was purchased and refunded. However, refunds may be made in another currency at Icelandair’s discretion. 

Icelandair Economy Flex Refund Policy

Icelandair’s Economy Flex tickets offer you the convenience and flexibility you need to cancel your reservation and receive a refund (or make changes). This is particularly useful in situations where unforeseen circumstances arise or travel plans need to be adjusted. The refund process for Economy Flex tickets is quite straightforward. You can do it online by filling out Icelandair’s refund form or by phone (call Icelandair or the travel agent you purchased your ticket from).

Tip. Be sure to cancel your flight before departure, otherwise, it will be considered a no-show and the fare already paid will be forfeited. 

Icelandair Cancellation Protection

Icelandair Cancellation Protection is a service offered by Icelandair that provides travelers with peace of mind in case their travel plans need to be cancelled (or changed). This protection allows passengers to cancel their flights and receive a full refund (within 45 days of the submission of proper documentation), regardless of the reason for cancellation. Whether it’s due to illness, unexpected events, or simply a change of plans, Cancellation Protection ensures that travelers are not financially burdened by non-refundable tickets. 

Passengers can have the flexibility to make changes to their travel arrangements without worrying about losing their money. It is an excellent option for those who want added assurance and flexibility when booking their flights with Icelandair.

Icelandair’s Cancellation Protection is offered only at the time of purchase or up to 36 hours before departure (online via a link provided in your e-ticket’s confirmation email), and is subject to the following conditions:

• If you’re unable to make the trip, you will be reimbursed the full cost of your ticket. 
• If change your travel plans after starting your journey, you will be reimbursed for the unused portion of your journey. 
• The per-passenger cost of Cancellation Protection is:
  • USD 17 for routes within Iceland 
  • USD 27 for Economy Class tickets 
  • USD 47 USD for Saga Class tickets
• The Cancellation Protection fee is non-refundable.
• If you purchase Cancellation Protection and are travelling with a lap infant (not occupying a seat) below 24 months of age, the protection will be added automatically to the infant at no additional charge.
• If the reason for claiming Cancellation Protection is an illness or accident, you may be required to present a medical certificate signed by an M.D. If the reason is COVID, the certificate can be signed by an M.D., a medical laboratory, or a licensed organization. 
• Cancellation Protection does not provide any compensation for service charges such as for booking, ancillaries, hotel/rental car costs, etc. The protection only covers the cancellation cost of tickets purchased through Icelandair. 
• If you’re claiming compensation from an insurance company for the same reason, Icelandair will pay its proportionate part of the compensation. 

Icelandair Cancellation Fee

Icelandair’s cancellation fee is nil for:

• Flex fares, i.e., Economy Flex and Saga Premium Flex fares.
• Flights cancelled within the 24-hour grace period, including:
  • All flights departing from the U.S. if all other conditions are met.
  • All other (non-U.S.) flights departing from other countries if booked at least 48 hours before departure. 
• Passengers who have purchased Icelandair’s Cancellation Protection. 

The cancellation fee for non-Flex tickets and tickets that do not fall in any of the above mentioned categories is the full fare less any applicable airport/government tax. This is so because they cannot be cancelled or refunded (only the tax component is refundable).

Icelandair Cancelled Flight Policy

According to the Icelandair cancellation policy, if the airline cancels your flight (also known as involuntary flight cancellation), you can request the airline to:

• Cancel and refund all the unused segments of your ticket if you don’t want to re-book yourself on another flight. 
• Travel to your final destination on the next available flight under comparable conditions, subject to seat availability. To arrange an alternative flight, contact the airline’s agent on-site or call a service center in your city/country. 

Note. If your flight booking includes your contact information, you will be informed about any changes to your itinerary. 

• You will be provided adequate care while you wait for an alternative flight. This will include meals and/or drinks. If you’re already at the airport at the time of the cancellation, you will need to contact Icelandair’s on-site agents to collect your meal vouchers. If Icelandair is unable to provide meal vouchers due to multiple flight disruptions, you must retain original receipts for costs incurred by you and then submit them for reimbursement (select Delay/Cancellation Assistance). You will be reimbursed within reasonable limits, based on your waiting time.

• You will be entitled to accommodation if you cannot be provided an alternative flight on the cancellation date and are unable to return home. You will need to contact Icelandair’s on-site agents at the airport to collect a hotel voucher. If Icelandair is unable to provide you with a hotel voucher due to multiple flight disruptions at the same time, you must retain the original receipts for the costs incurred and submit them for reimbursement (select Delay/Cancellation Assistance). You will be reimbursed later within reasonable limits for a hotel room (double). 

• You will also be entitled to to-and-fro transportation from the airport to the hotel. If Icelandair is unable to provide you with a transportation voucher, be sure to retain the original receipts and submit them for reimbursement as explained above. The transportation cost can include a train ticket, and/or fuel cost, and/or an airport shuttle trip.

• You may be eligible for compensation (explained later) if Icelandair cancels your flight within 14 days of departure. The amount of compensation will depend on the length of your flight and the alternative flight offered to you (if applicable).

Icelandair Cancelled Flight Compensation

If your Icelandair flight is cancelled within 14 days of departure, you may be entitled to compensation in line with EU regulations—unless the cancellation was due to extraordinary circumstances beyond the airline’s control. The amount of compensation will depend on the length of your flight and the delay caused by the cancellation. 

The compensation is not automatic and you will need to submit a claim to Icelandair with supporting documentation. To ensure a smooth claims process, gather all relevant information such as your booking details, flight confirmation code, and any communication from the airline regarding the cancellation.

Icelandair flight cancellation compensation. The amount of compensation for a cancelled flight ranges from €250 to €600 for flights that are cancelled without proper notice or due to reasons within the airline’s control. 

• For flights less than 1,500 kilometers, you can receive €250 as compensation. 
• For flights between 1,500 and 3,500 kilometers, you can receive €400 as compensation. 
• For flights over 3,500 kilometers, you can receive €600 as compensation.

Note

• The cancelled flight compensation (above) will be reduced by 50% if Icelandair provides you with an alternative flight departing up to 2 hours prior to the originally scheduled departure time and arriving at your final destination within 4 hours of the original flight’s scheduled time of arrival.
• Be sure to keep all documentation relating to the cancellation and any expenses you incurred, such as hotel stays or meals, as this will be required when filing a claim with the airline.  

Frequently Asked Questions on Iceland Air Cancelation Policy

The Frequently Asked Questions below on Icelandair Cancellation Policy will help you to understand the airline’s cancellation policy and avoid any unexpected fees or complications. It addresses a few common questions regarding the cancellation process, including how to initiate a cancellation. Familiarizing yourself with the policy can help you navigate the cancellation process with ease and ensure a smooth travel experience.