Icelandair’s cancellation policy varies by ticket type, fare rules, and booking conditions. Below is a concise overview based on the latest information:
24-Hour Cancellation Policy:
- For tickets booked directly through Icelandair’s channels (website, app, or customer service), you can cancel within 24 hours of booking for a full refund without penalty, provided the flight departs at least 2 days (48 hours) from the booking date. This applies to all fare types, including non-refundable tickets, and includes holiday package bookings.
- For U.S. and Canada routes, the flight must be booked at least 7 days before departure to qualify for this risk-free cancellation.
- Domestic flights in Iceland booked less than 12 hours before departure are not eligible for this refund.
- Booking fees may not be refunded, though U.S. DOT regulations require a full refund (including fees) for tickets purchased 7+ days before departure if canceled within 24 hours. Some customers report issues with Icelandair withholding booking fees (e.g., $15), which may violate DOT rules.
Involuntary Cancellations (Icelandair-initiated):
- If Icelandair cancels your flight, you can choose:
- A full refund to the original payment method.
- Rebooking on the next available flight under comparable conditions at no extra cost.
- A travel credit voucher for future use.
- Under EU Regulation EC 261/2004 (applicable to flights departing from or arriving in the EU), if the cancellation is notified less than 14 days before departure and isn’t due to extraordinary circumstances (e.g., weather, strikes), you may be entitled to compensation of €250–€600 per person, depending on flight distance.
- Icelandair provides care (meals, drinks, or accommodation if delayed overnight) and reimburses reasonable expenses (e.g., up to €200 for a double hotel room) if no vouchers are issued. Submit receipts via Icelandair’s “Delay/Cancellation Assistance” form.
Voluntary Cancellations (Passenger-initiated):
- Refundable Fares (Economy Flex, Saga Premium Flex):
- Can be canceled before departure for a full refund, minus booking fees and potential no-show fees (if applicable).
- No-show cancellations are refundable, but a no-show fee is deducted, and partially used tickets are recalculated based on the flown portion’s fare.
- Non-Refundable Fares (Economy Light, Economy Standard, Saga Premium):
- No refunds after the 24-hour window, except for unused government/airport taxes. You may receive a travel credit for the ticket’s unused value, valid for 12 months, subject to cancellation fees.
- Cancellation fees vary by route and fare, e.g., CAD 75 per segment or up to 100% of the ticket value, depending on booking class, destination, and timing.
Award Tickets: Cannot be canceled; if canceled, no refund is issued.
Group Bookings (10+ passengers): Have separate cancellation rules; contact Icelandair’s group booking department.
Cancellation Protection (optional add-on, starting at ~$17 per person):
- Refunds the ticket cost (excluding service fees like booking charges) if you can’t travel due to:
- Death, sudden serious illness, or accident requiring hospitalization of you, your partner, children, grandchildren, parents, in-laws, grandparents, or siblings (requires medical certificate).
- Significant material damage to your home or private company (requires police report).
- Contracting COVID-19 or another WHO-classified pandemic illness, proven by a medically approved test.
- Must be purchased at booking or within 36 hours via a link in the e-ticket confirmation. Claims require immediate notification and documentation, with refunds processed within 45 days.
- Does not cover voluntary cancellations or costs like hotels/car rentals booked via Icelandair.
How to Cancel:
- Phone: Call +1-877-240-6770 (USA/Canada) or regional numbers listed on Icelandair’s website.
- Refund Form: Submit a refund request via Icelandair’s online form for unflown flights, available up to 7 days before departure.
- Third-Party Bookings: Contact the travel agency or booking platform directly, as Icelandair’s terms may not apply.
- Refunds are processed within 7 business days for credit card payments or 20 business days for cash/other methods after receiving complete documentation.
Additional Notes:
- Partial cancellations (e.g., one passenger or segment) are generally not allowed; the entire itinerary is canceled, especially for domestic flights.
- No-show without prior notification cancels remaining reservations automatically.
- For EU routes, compensation claims can be filed via Icelandair’s claim form or services like AirHelp.
