Icelandair will retire its remaining Boeing 757 aircraft during the winter of 2026-2027, several months earlier than previously planned, as elevated fuel prices accelerate the carrier's transition to newer aircraft.
The airline had expected to keep the type in service until the end of the 2027 summer season, but Icelandair Director of Network Planning and Scheduling Snorri Tomasson told Aviation Week that current fuel costs have forced a revision of those plans.
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Icelandair is in the middle of a fleet renewal program centered on Boeing 737 MAX and Airbus A321LR aircraft. The carrier currently operates 21 737-8 and 737-9 jets alongside six A321LRs, while still flying eight Boeing 757-200s, three 767-300s and six Dash 8 turboprops.
According to Tomasson, the improved fuel efficiency of the newer aircraft is allowing Icelandair to retain routes that might otherwise become uneconomical in the current operating environment.
The A321LR is also enabling the airline to extend seasonal services into the winter months. Routes such as Portland, Oregon, which were previously limited to summer operations, can now be served year-round thanks to the aircraft's lower operating costs.
Icelandair expects to receive additional A321LRs through 2027 and plans to introduce the longer-range A321XLR later this decade.
The fleet transition is also prompting changes to the airline's network structure. Tomasson said Icelandair has been adjusting schedules and connection banks at its Keflavik hub to accommodate the capabilities of the A321LR and future A321XLR fleet.
