Icelandair Group hf. announced that on December 12, 2023 and December 14, 2023 this week Air Traffic Controllers in Iceland had a strike causing significant disruptions to Icelandair's flight schedule. Further strikes have been announced at Keflavik Airport on December 18, 2023 and December 20, 2023 next week.

Thus, the labor actions will continue to cause significant disruptions to the Icelandair's flight schedule and seriously impact people's travel plans. This week 13,000 Icelandair passengers were affected by the labor actions and next week Icelandair estimates that 23,000 passengers will be affected. Although Icelandair will make reasonable efforts to get all passengers to their intended destination, before and during the holidays it is becoming more likely that this will not be possible due to heavy traffic at this time of the year.

The strike each day takes place between 4am and 10am which is the time period when most Icelandair's flights from North America arrive at Keflavik Airport and most of Icelandair's flights to Europe depart. The timing of the actions is selected by the Icelandic Air Traffic Controller Association to cause damage to the Icelandic airlines while other international carriers that fly to and from Keflavik Airport are not as affected. The top priority is to use all reasonable efforts to ensure smooth and enjoyable travel experience of its passengers.

At the same time, Icelandair estimates the cost of the labor actions this week to be significant. Due to the increased number of passengers next week in relation to the holiday season, further labor actions will lead to more significant disruptions with much greater negative financial effects for the company than during this week. Based on current assumptions the total cost of the labor actions could be around USD 5 million to USD 7 million if a resolution will not be reached as soon as possible.

Icelandair will pursue all efforts to seek full compensation from Isavia due to the financial effects of the strikes.