During the sixties and seventies, the airline became a favorite choice of college students who were making their first trips abroad. The fares suited their budgets and Luxembourg, now in the route network, suited their destination needs, as backpacking from this 'heart of Europe' became extremely popular.

Icelandic was dubbed  'The Hippie Airline' – a nickname that still provides a bit of nostalgia for today’s travelers.

The core of Icelandair travelers continues to be those loyal passengers who flew Icelandic in the sixties and seventies. As they have matured, so has Icelandair. We have grown our services and expanded our route network, adding exciting destinations to our route map on both sides of the Atlantic.

The New Icelandair

In the summer of 1973, Icelandair and Icelandic merged, forming a holding company until October 1979, when it assumed all operating responsibilities under the currently-used name Icelandair. 

Once again, the airline was setting precedents and now led in the development of an ever-growing industry in Iceland: Tourism.

Between 1989 and 1991, the entire fleet of aircraft was replaced with new Boeing 757-200 and Boeing 737- 400 aircraft. The 757s were used on transatlantic flights, and the 737s were used on most of the intra-Europe flights. By 2002, Icelandair’s entire fleet was comprised of B-757s, which were used on all routes

In 1995, marking a "first" among European airlines, Icelandair became smoke-free on all routes.

Another Millennium of Discovery

Icelandair endeavors to provide passengers with a unique travel experience to Iceland and beyond. We invite travelers en route to other destinations in Europe to Stopover in exotic Iceland – up to seven nights at no additional airfare – to discover the beauty, Nature, people and culture of the very special place we are proud to call 'home.'