Icelandair achieved remarkable growth in February 2025, marking a strong start to the year. The airline carried 251,000 passengers, reflecting a 7% rise from the previous year. This increase came as Icelandair expanded its capacity by 8%, ensuring it met the surging demand for travel. Passengers flying to Iceland accounted for 40% of total travelers, while 33% used Icelandair for stopovers. Meanwhile, 20% departed from Iceland, and 7% traveled within the country.

The airline reached a record load factor of 79.8%, highlighting its ability to optimize seat occupancy. Although passenger yield dipped slightly to 8.0 US cents, the strong load factor balanced the impact. This efficiency allowed Icelandair to maintain passenger revenue at similar levels to last year. Punctuality also remained high, with an 80.5% on-time performance, ensuring a reliable experience for travelers.

Demand for Icelandair’s charter services surged, with sold block hours increasing by 27%. However, freight operations declined, with Freight Ton Kilometers dropping 10% year-over-year. Despite this, the airline advanced its sustainability efforts. CO2 emissions per Operational Ton Kilometer fell by 6%, driven by a higher load factor and continued fleet upgrades. The introduction of fuel-efficient Boeing 737 MAX and Airbus A321 LR aircraft contributed to this progress.

Icelandair also expanded its global reach by launching ticket sales through a new interline partnership with Southwest Airlines. This collaboration, starting with Baltimore (BWI), strengthened connections between Iceland and multiple North American destinations. Bookings from 43 U.S. airports demonstrated strong initial interest in the partnership.

Looking ahead, Icelandair remains focused on growth and efficiency. The airline received its second Airbus aircraft and expects two more deliveries soon. With summer approaching, Icelandair is gearing up for a busy travel season, reinforcing its position as a key player in the aviation industry.

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