As the airline that brings the majority of tourists to Iceland and as an important employer in the country, Icelandair's operations are vital for Icelandic tourism, the local economy and society at large. Icelandair Group contributes directly to the Icelandic economy in the form of salaries, salary-related expenses, and pension contributions in addition to its indirect contribution that drives economic benefits not only to the local tourism industry but the Icelandic economy as a whole. Icelandair contributes directly to the Icelandic economy in the form of taxes and fees paid to the government and municipalities. The total tax footprint of Icelandair Group in Iceland in 2023 amounted to USD 236 million (2022: USD 199 million).
| 2023 | 2022 | ||||||||
| Total | Total | ||||||||
| 21,497 | 18,277 | ||||||||
| 48,881 | 38,106 | ||||||||
| 23,272 | 15,112 | ||||||||
| 46,765 | 36,776 | ||||||||
| 4,346 | 1,494 | ||||||||
| 144,761 | 109,765 | ||||||||
| 100,517 | 86,455 | ||||||||
| 148,824 | 122,258 | ||||||||
| 249,341 | 208,714 | ||||||||
| 6,535 | 10,401 | ||||||||
| 400,636 | 328,880 | ||||||||
| 100% | 100% |
We have continued our work on centralising and improving procurement functions across all operations as responsible procurement has previously been identified as a material issue for Icelandair. The intention is to work with responsible suppliers throughout the supply chain by applying sustainability criteria on transparency, legal compliance, and responsible growth. All suppliers are asked to adhere to the Supplier code of conduct, and they are evaluated through the Icelandair risk screening model.
Our key takeaways from our Double Materiality Assessment (DMA), which forms part of the CSRD, in terms of Workers in the value chain are:
- Impacts are specifically identified in relation to Icelandair’s suppliers of fuel and aircraft with operations mainly in Europe and the US. Due to lack of transparency in the value chain, all impacts are assumed and expected to have a high severity.
- No financial impacts identified
The following sub-topics were identified as material.
S2.1 Working conditions
S2.2 Equal treatment and opportunities for all
S2.3 Other work-related rights
In December 2023, the Icelandic Road and Coastal Administration approached us for assistance due to repairs on the Westman Islands ferry, Herjólfur. In order to increase reliability of the connection between the islands and the mainland while the ferry was being repaired we scheduled a daily flight to the Westman Islands. Another ferry was used to continue transporting passengers to and from the islands, but our flights was an addition to that schedule.
Our key takeaways from our Double Materiality Assessment (DMA), which forms part of the CSRD, in terms of Affected communities are:
- Main impacts identified on Economic, social and cultural rights relate to Icelandair’s positive impacts on affected communities, specifically in Iceland. The impacts on Rights of indigenous communities relate to the potential negative and positive impacts on indigenous communities right in Greenland
- No financial effects identified
The following sub-topics were identified as material.
S3.1 Economic, social and cultural rights
S3.3 Particular rights of indigenous communities
Children are a vulnerable group in terms of health and safety and Icelandair has policies and actions in place to protect children. Additionally, we offer services for unaccompanied minors who are traveling alone on Icelandair flights. To ensure the childrens best security, and experience, their travel documents are placed in a special wallet, which is worn by the child throughout the journey. During the transfer time in Keflavík airport the unaccompanied minor is escorted by an Icelandair ground agent to a private waiting area and escort to the aircraft before the boarding process starts. Our cabin crew check in with the children throughout the flight and as an additional safety precaution, they are seated at the back of the aircraft so that crew is always within easy reach. On arrival at the destination, the Icelandair ground agent meets the child at the aircraft, escorts it through the airport, and help with collecting baggage. The agent will also check the photo identification and contact information before releasing the child to the guardian who has been specified before the journey starts.
Our key takeaways from our Double Materiality Assessment (DMA), which forms part of the CSRD, in terms of Consumers and end-users are:
- Impacts have been identified for all the sub-sub-topics related to consumers and end-users. However, the only impacts assessed as material for the time being relate to the health and safety of consumers and their security.
- A few financial risks have been identified, specifically in relation to privacy, personal health and safety, access to products and services, non-discrimination and responsible marketing practices. However, non of the risks have been assessed as material for the time being.
The following sub-topics were identified as material.
S4.2 Personal safety
Icelandair continued its efforts to contribute to Icelandic society through its diverse partnerships that reflect the Company’s strategy and approach to social responsibility and are underpinned by its vision of bringing the spirit of Iceland to the world. Aside from being an important employer in Iceland, Icelandair is proud of its role in the Icelandic community and continues to seek new opportunities to expand its ties to society as a whole.
Through the organisations and events that the Company supports, Icelandair is proud to foster and promote the spirit of Iceland.
Iceland is globally recognised as punching above its weight on the world music stage, and Icelandair is proud of the role it plays in nurturing and showcasing local talent. Icelandair founded the acclaimed Iceland Airwaves music festival in 1999, and today sponsors a number of music, design and arts events. We celebrate music and culture that flourish outside the capital, too, sponsoring the Eyrarrósin award (for cultural projects in the regions), and festivals such as Bræðslan in the Eastfjords, and Aldrei fór ég suður in the Westfjords.
- Iceland Airwaves
- Icelandic Music Experiments (Músíktilraunir)
- Iceland Writers Retreat
- DesignMarch
- Eyrarrósin award
- Aldrei fór ég suður
- Bræðslan
For the past couple of years we’ve worked with Icelandic travel partners to create a ‘roadshow’ of sorts, an immersive pop-up event that takes the best of Iceland to one of our destinations. We invite the locals to come see that Iceland’s wonder is ‘just around the corner’. In 2022 we took Iceland to London, and in 2023 we visited Boston. Over three days, thousands of people were educated and entertained by our award-winning event, which received excellent media coverage in the US.
As one of Iceland’s important companies, Icelandair is committed to playing a participatory and supporting role in its community. The Company supports the life-saving work done by its country’s volunteer search-and-rescue team, and together with contributions from its passengers lends a hand to children with long-term illnesses and children who live in difficult circumstances.
- Icelandic Association for Search and Rescue (ICE-SAR)
- Special Children Travel Fund (Vildarbörn)
We hosted fun family days at shopping centers in Reykjavík and Akureyri, providing a full program of entertainment and activities: prizes and ticket giveaways, Circus Iceland performers, face decorating, singers, balloon art, candy floss – the works! These have been so much fun we extended the concept to Nuuk in Greenland in summer 2023.
A small country needs innovators in the business world, and through the Icelandic Tourism Fund, Icelandair gives financial backing to new ventures that seek to increase the diversity of Icelandic tourism and strengthen its infrastructure. The fund’s main focus is supporting the development of year-round attractions for tourists and Icelanders alike.
- Arctic Adventures
- ST Holding ehf. (Special Tours and Whales of Iceland)
- LAVA (Interactive volcano exhibition)
- Þríhnúkar (Inside the volcano
The whole is greater than the sum of its parts, and this is especially true in a country with a small population. Together the nation can reach new sporting heights, as evidenced in the recent successes of the national football and handball teams on the global stage.
- National Olympic and Sports Association of Iceland (ÍSÍ)
- Football Association of Iceland (KSÍ)
- Icelandic Handball Association (HSÍ)
- Icelandic Basketball Association (KKÍ)
- Golf Association of Iceland (GSÍ)
- Iceland Sports Association for the Disabled
- Icelandic Gymnastics
We’re proud to continue our support of the Icelandic national handball teams, which we’ve been involved with for almost 40 years. Both the men’s and women’s teams traveled to their respective World Championships in 2023, with the men’s team doing especially well. We continued to cheer on their progress as they prepared for the European Championship in early 2024.
We believe that a small nation can have a big impact, and we are proud that Iceland leads by example on important global issues such as gender equality and green energy. We sponsor annual events that enable the country to shine a spotlight on issues that are close to Icelanders’ hearts.
- Reykjavík Global Forum – Women Leaders
- Arctic Circle conference
- Iceland Innovation Week
We’re proud to be part of a community that values and supports equality. We partner with Reykjavík Pride to transport special guests to their annual event; we also partner with Samtökin '78, the National Queer Association of Iceland.
Every year, we fly a Pride Flight during Reykjavík’s Pride week. The cabin crew and pilots on these flights are all proud members or allies of the LGBTQ+ community. The service on board is themed accordingly – we serve treats, rainbows, and a fun and festive mood.