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Icelandair Compensation for Flight Delays, Cancellations & Refund

Don't miss out on up to €600 for your Icelandair flight disruptions

Since its inception, Icelandair has played a pivotal role in connecting Iceland with the rest of the world. While it continues to stand tall in the airline industry, unforeseen flight interruptions such as delays, cancellations, and overbooking can occur. It's crucial, in these instances, to understand your rights as a passenger and the best way to navigate such situations.

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AirAdvisor is your reliable guide devoted to protecting your air travel rights. We have handled more than 230,000 flight delay and cancellation claims. In this article, we delve into Icelandair's policies regarding compensation for common flight disruptions and further highlight how our seasoned experts at AirAdvisor can assist you in claiming the compensation you're due.

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Written By Nicolle Harwood-Nash

Last Updated: January 04, 2024

Your rights in case of flight disruption

Below, we explain the regulations you might be covered under in the case of an Icelandair flight disruption:

EU Air Passenger Rights

The rights of air passengers in Europe are upheld by EU Regulation 261/2004, designed to guarantee just treatment and suitable compensation in the event of flight disruptions. These disruptions can include delays, cancellations, and overbooking instances. EU261 applies to all flights departing from any European Union country and to flights arriving in the EU from overseas if the airline operating the flight is EU-based, as is the case with Icelandair.

Compensation amounts depend on the duration of the delay caused by the disruption and the distance of the flight. Typically, compensation can reach up to €600 per passenger.

Passenger Rights in the UK

Following Brexit, the United Kingdom established its own air passenger rights regulations, known as the UK261 passenger rights law. This law parallels EU261, providing similar safeguards for passengers flying with a UK-based airline or departing from a UK airport. UK261 caters to a variety of flight disruptions such as cancellations, delays, instances of denied boarding, and missed connections, ensuring appropriate compensation is made available.

In accordance with EU regulations, compensation under UK261 varies based on the length of the delay and the flight distance. It generally peaks at £520 per passenger.

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What to Do in Case of Flight Disruption

If you encounter a flight disruption with Icelandair, such as a delay, cancellation, or overbooking, it's essential to follow specific steps to safeguard your passenger rights and expedite your claim process. Here's a guide to help you navigate this situation:

Connect with Icelandair: Engage with Icelandair representatives present at the airport or via their customer service centre. Your objective should be to uncover the cause of the disruption and get confirmation of it in writing.
Retain Your Travel Documentation: It's important to keep all your travel documents safe, including boarding passes, tickets, and all relevant receipts. In addition, maintain any written or digital correspondence from Icelandair concerning the flight disruption, as these documents serve as vital evidence to support your compensation claim.
Assert Your Right to Care: In the event of a disruption, Icelandair is obliged to provide essential services during your delay. This includes offering food and drinks, communication facilities, and accommodation if necessary.
Use AirAdvisor's Compensation Calculator: To determine your eligibility for Icelandair compensation and understand the claim process, our user-friendly compensation calculator is at your disposal. This handy tool allows you to quickly gauge your potential compensation based on your specific flight disruption details.

By adhering to these guidelines, you can be better prepared to deal with flight disruptions and enhance your position to pursue any compensation that may be due to you.

Things to Avoid

When confronted with a flight delay or cancellation with Icelandair or any other airline, there are common pitfalls that could undermine your chances of claiming the full compensation you're entitled to. Here are 3 of them to avoid:

1. Hasty Acceptance of Initial Proposals

At times, airlines may seek to minimise their financial liability by offering passengers an initial compensation package of lesser value. It's crucial not to impulsively accept this first offer. Instead, measure the airline's initial proposition against the compensation you're entitled to under EU261.

If the early offer falls short of the mandated compensation, you have every right to demand the full compensation you're owed.

2. Settling for Travel Vouchers

Airlines might suggest travel vouchers as a quick-fix solution, but there are numerous reasons why it's wiser to decline this option. One significant reason is that these vouchers are typically restricted to use with the same airline and can come with a plethora of limitations, such as blackout dates or specific flight eligibility.

Another reason we discourage accepting a voucher as flight disruption compensation is that many passengers end up not using them. Moreover, by accepting a flight voucher, you may inadvertently waive your right to pursue further compensation.

3. Endorsing Documents or Waivers Without Full Understanding

In the wake of a flight disruption, some airlines may ask you to sign specific documents or waivers. These might be designed to limit the airline's liability or waive your entitlement to compensation. It's essential not to endorse any document you don't fully understand.

Should you be presented with such documents, ensure you scrutinise them thoroughly and seek legal advice if necessary. Remember, under EU261 and UK261 regulations, you have passenger rights, and you should not be pressured into renouncing them.

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Icelandair Flight Delay Compensation Rights

Under the provisions of EU261, you have the right to claim compensation for a delayed flight with Icelandair. To qualify for this, you should have experienced a delay that extended beyond 3 hours, and the delay must have been caused by issues within the airline's control, such as technical difficulties with the aircraft.

The amount of compensation you're entitled to can vary based on the distance of your flight, as outlined below:

For short-distance flights (up to 1,500km), you could receive up to €250 in compensation.
For medium-distance flights (1,500-3,500km), this could increase to €400.
For long-distance flights (over 3,500km), the compensation could go up to €600.

Flight Cancellation Compensation Rights

EU261 legislation also stipulates that you're entitled to compensation in case your flight is cancelled by Icelandair without them providing at least a 14-day notice. This usually excludes cancellations that arise from extraordinary circumstances beyond the control of the airline.

You can explore the compensation amounts for a cancelled flight here:

For flights up to 1,500km, you could receive up to €250 in compensation.
For flights between 1,500km and 3,500km, this could increase to €400.
For flights over 3,500km, the compensation could go up to €600.

Airline Refund

EU261 also grants you the right to an airline ticket refund under certain circumstances. These include situations where Icelandair cancels your flight without providing a 14-day notice, the flight is delayed by over 5 hours, or you are denied boarding due to overbooking or operational reasons that fall within the airline's control.

Besides the refund, you may also be eligible to claim monetary compensation for the inconvenience you experienced. The amount is determined based on the flight distance and the duration of the delay, as explained above.

If your flight was delayed, canceled or overbooked within the last 3 years, you could be eligible for up to €600 in compensation.Check Your Flight

Denied Boarding Compensation Rights

In line with EU261 regulations, you're generally entitled to compensation for denied boarding from Icelandair. This situation typically arises when an airline overbooks a flight and doesn't have enough seats for all ticketed passengers. As long as you didn't voluntarily give up your seat or cause the denied boarding due to your own actions, you're eligible to seek compensation from the airline.

The compensation you could claim in the case of denied boarding depends on your flight distance. For instance, you could receive:

€250 for short-distance flights
€400 for medium-distance flights
€600 for long-distance flights

Missed Connection Compensation Rights

EU261 also entitles you to compensation from Icelandair if you miss your connecting flight due to a delay or cancellation of your initial Icelandair flight, provided that all flights are part of a single reservation. The key factor here is the impact of the initial disruption on your final arrival time at your destination. If the disruption results in you reaching your final destination 3 hours or more later than scheduled, you're eligible to claim compensation for the missed flight.

How much you receive, in terms of compensation if you missed your flight, depends on your total delay upon reaching your final destination and the cumulative distance of your flights. The compensation due from Icelandair for a missed connection can range from:

€250 for short-distance flights
€400 for mid-range flights
€600 for long-distance flights

Extraordinary Circumstances

When discussing flight disruptions such as delays, cancellations, or denied boarding, the concept of "exceptional situations" is crucial. This phrase represents scenarios beyond the airline's control or ability to mitigate, including events that couldn't be prevented despite taking all reasonable measures. These might encompass extreme weather conditions like heavy snowstorms that make it unsafe to fly, restrictions imposed by air traffic control for safety concerns, urgent security risks, or instances of political instability that could disrupt air travel.

Under these extraordinary circumstances, airlines like Icelandair are typically exempt from the obligation of compensating affected passengers. Despite potentially causing significant inconvenience, the primary concern in such situations remains the safety and welfare of passengers. It's advisable to ascertain specific details about your flight disruption situation, as each case is distinct and could be interpreted differently under EU261.

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Icelandair Frequently Asked Questions

In this section, we've compiled responses to some commonly raised inquiries concerning Icelandair flight disruptions:

What to do When Your Icelandair Flight is Cancelled?

If your Icelandair flight gets cancelled, the first step is to contact the airline to understand the reasons behind the cancellation. Retain all travel-related documents and any communication you receive from Icelandair about the cancellation, as these might be necessary if you decide to claim compensation.

Depending on the reason for the cancellation and the notice period you were given, you might be entitled to compensation under EU261 regulations. For assessing your eligibility for compensation and the amount you might receive, you can visit the AirAdvisor website.

What if I Cancel My Icelandair Flight? Can I Get a Refund?

If you choose to cancel your Icelandair flight, your ability to get a refund depends primarily on the fare conditions of your ticket. Tickets are usually classified into refundable and non-refundable categories.

If you purchased a refundable ticket, you should be able to cancel your flight and receive a full or partial refund. Non-refundable tickets, on the other hand, typically don't allow for cash refunds but might offer credits or vouchers for future travel with Icelandair. Always check the terms and conditions of your ticket before cancellation.

How Many Hours for Flight Delay to be Eligible for Icelandair Compensation?

To qualify for compensation from Icelandair due to a flight delay, the flight must have been delayed by at least 3 hours. This 3-hour threshold is set by EU261 regulations. However, it's important to note that the delay must have occurred due to circumstances within Icelandair's control, and not due to extraordinary circumstances like severe weather or political unrest.

Examples of situations within the airline's control include technical faults with the aircraft or crew scheduling issues.

How Long Does it Take to Get Icelandair Flight Delay Compensation?

The time it takes to receive compensation can vary widely and depends on numerous factors, such as Icelandair's internal procedures, the volume of claims the airline is handling, and whether the claim is disputed or not.

How to Claim Flight Delay Compensation With Icelandair?

Below, you can review one of the most seamless ways of obtaining the Icelandair flight compensation you're entitled to:

Check Eligibility: The first step in your compensation claim process should be verifying your eligibility. By navigating to the 'Check Compensation' tool on the AirAdvisor website, you can assess if your flight delay qualifies for compensation under EU261. This tool will provide an instant evaluation based on the details of your flight delay.
Submit Your Claim: If your case is eligible, you can submit your claim through AirAdvisor. The platform will ask for necessary details about your flight and the delay. You'll also need to upload relevant documentation, including boarding passes, tickets, and any related receipts.
Let AirAdvisor Handle the Rest: Our expert team at AirAdvisor will then take over the process, contacting Icelandair on your behalf, and dealing with all subsequent communication and negotiation. AirAdvisor's expertise in handling airline compensation claims simplifies the process and increases your chances of success.

Our primary goal is to make your claim process as smooth and effortless as possible. Every situation is unique, and our dedicated team is well-equipped to handle various scenarios to help you get the compensation you deserve.

And the best part? We only charge a service fee if your claim is successful, plus we take the fee out of the compensation payment itself, meaning no out-of-pocket costs for you!

How Much Time Do I Have to Make My Claim Against Icelandair?

EU261 stipulates that you can lodge a compensation claim for flight delays, cancellations, or denied boarding against Icelandair within a span of up to 6 years from the date of the incident. So, even if your flight disruption occurred years ago, you could still be eligible for compensation. It's always worth checking, as unclaimed compensation could amount to hundreds of Euros per passenger.

Although a generous time limit is provided, it's highly recommended that you initiate the claim process promptly after the occurrence of the flight disruption. This is because details are more readily available and memories of the incident remain fresh. The quicker you can provide pertinent details and evidence regarding the flight disruption, the more efficiently your claim can be processed.