Icelandair: Continued strikes will reduce the likelihood of all passengers reaching their destination before the holidays
December 15 2023 - 12:06PM
Icelandair: Continued strikes will reduce the likelihood of all
passengers reaching their destination before the holidays
On Tuesday and Thursday 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 Monday and Wednesday next week.
Thus, the labor actions will continue to cause significant
disruptions to 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.
Icelandair’s 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 5-7 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.
Bogi Nils Bogason, President & CEO
of Icelandair:
“We are facing a very serious situation and it
is urgent that a resolution will be reached. Iceland is
particularly vulnerable to such labor actions as an island nation
that depends solely on flight connections for travel to and from
the country. The actions have already caused negative financial
impact that will increase significantly as we get closer to the
holiday season. The largest impact is on those who deserve it the
least – people who are traveling to meet their families and friends
at this important time of the year. We will of course do all that
we can to get people to their destinations before the holidays, but
we are not certain that it will be possible during this heavy
traveling period. It is therefore crucial that a resolution will be
found as soon as possible.”
Contact Information Investors: Iris Hulda
Thorisdottir, Director Investor Relations. E-mail:
iris@icelandair.is Media: Asdis Petursdottir, Director
Communications. E-mail: asdis@icelandair.is
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