Icelandair seals new cabin crew pact as it reels from first-half losses

Icelandair Group has secured approval from its flight attendants for a new collective agreement, thrashed out after a stand-off which involved the airline’s dismissing, and then reinstating, its cabin crew corps. The agreement will remain valid until the end of September 2025 and rounds off the critical negotiations with personnel that are essential to the airline’s financing strategy. Icelandair Group says the deal with cabin crew union FFI provides flexibility to develop its route network while also taking into account the requirements of employees. It sealed the pact as it unveiled a first-half operating loss of $313m, having suffered a $105m impact in Q2. H1 revenues of nearly $270m were down by close to 60%. “All our efforts now are aimed at getting the company through this period by using our flexibility to react quickly to changes in demand in the short term and, at the same time, strengthen the long-term competitiveness,” says CE Bogi Nils Bogason. “It is crucial to have reached agreements with our cabin crew, pilot and aircraft maintenance unions and I am grateful for their important contribution in ensuring the future competitiveness of the company.”<br/>