Icelandair reaches crucial restructuring pact with cabin crew union

Icelandair Group has achieved a breakthrough in its restructuring efforts, with a provisional productivity agreement with cabin crew representatives. While the company had reached new deals with its pilots and aircraft mechanics, cabin crew union FFI was holding out and Icelandair Group was pessimistic over progress. But it states that the two sides have managed to sign a new collective-bargaining agreement which will run until the end of September 2025. “The agreement meets the set objectives of increasing productivity and flexibility for the company and, at the same time, ensures competitive compensation for cabin crew members,” said the airline. Icelandair Group had been looking to relax duty-time clauses and obtain flexibility which would open up the possibility of new western US and southern European services. Cabin crew union members are set to vote on whether to accept the deal, which is an important part of the company’s restructuring plans.<br/>