What is Icelandair cancellation policy?

Icelandair offers free cancellation within 24 hours of booking, plus fare-class-based fees after that window closes. Refund method: Refunds for eligible tickets or taxes are issued to the original form of payment.

What is Icelandair cancellation policy after 24 hours?

Once the 24-hour window expires, fees apply by fare class. Main Cabin: Economy Flex is fully refundable.. Basic Economy: Economy Light and Economy Standard are non-refundable. Unused government/airport taxes are refundable.. Premium: Saga Premium is non-refundable. Saga Premium Flex is fully refundable..

Does Icelandair 24-hour cancellation apply to agency bookings?

Tickets booked through third-party travel agencies (including consolidators) may not qualify for Icelandair's 24-hour free cancellation. The rule typically applies only to direct bookings on the airline's own website or app. Check your specific fare rules or contact Icelandair directly to confirm.

What is Icelandair's change fee?

Main Cabin: Economy Flex allows changes without a change fee, but fare difference may apply.. Basic Economy: Not permitted for Economy Light. For Economy Standard, change fee applies (e.g., $250 USD for US to Europe)..

Icelandair Cancellation Policy: Fees & 24-Hour Rule Explained

If you book a ticket through Icelandair's booking channels, you can cancel the ticketed reservation without penalty and receive a refund if the reservation is made more than 2 days prior to the scheduled flight departure and is cancelled within 24 hours after purchasing.

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Page updated: August 2026

24-Hour Rule

Yes — free cancellation within 24 hours of booking. If you book a ticket through Icelandair's booking channels, you can cancel the ticketed reservation without penalty and receive a refund if the reservation is made more than 2 days prior to the scheduled flight departure and is cancelled within 24 hours after purchasing.

Cancellation Fees

Fare Class	Fee
Basic Economy	Economy Light and Economy Standard are non-refundable. Unused government/airport taxes are refundable.
Main Cabin	Economy Flex is fully refundable.
Premium	Saga Premium is non-refundable. Saga Premium Flex is fully refundable.
Business	Saga Premium Flex is fully refundable.

Change Fees

Fare Class	Fee
Basic Economy	Not permitted for Economy Light. For Economy Standard, change fee applies (e.g., $250 USD for US to Europe).
Main Cabin	Economy Flex allows changes without a change fee, but fare difference may apply.
Premium	Saga Premium allows changes for a fee. Saga Premium Flex allows changes without a change fee.
Business	Saga Premium Flex allows changes without a change fee.

Refund Method

Refunds for eligible tickets or taxes are issued to the original form of payment.

Same-Day Change

Subject to fare rules and availability; typically requires paying fare difference and applicable change fees.

No-Show Policy

No-show ticket is not valid for later use or refund. Remaining return and/or onward reservations will be automatically canceled.

If Icelandair Cancels Your Flight

When an airline cancels or significantly changes your flight, U.S. Department of Transportation regulations require the airline to provide a full refund to the original form of payment — including ticket price, taxes, fees, and any paid extras — regardless of fare type.

Under DOT rules, a "significant change" includes: arrival delayed 3+ hours (domestic) or 6+ hours (international), a change in departure or arrival airport, additional connections, or an involuntary downgrade to a lower class of service.

The refund must be issued automatically within 7 business days for credit card purchases or 20 calendar days for other payment methods. Airlines may offer travel credits or vouchers as an alternative, but must inform you of your right to a cash refund. You are not required to accept a voucher.

Source: U.S. Department of Transportation, Aviation Consumer Protection — Refunds (transportation.gov/individuals/aviation-consumer-protection/refunds, last updated November 7, 2025).

How to Cancel

Go to the Icelandair website.
Navigate to 'Manage booking'.
Enter your booking reference and last name.
Select the option to cancel your flight and follow the prompts to request a refund if applicable.

Tips

Cancel within 24 hours of booking for a full refund if booked at least 2 days before departure.
Consider purchasing Cancellation Protection if you might need to cancel due to illness.
Even for non-refundable tickets, you can request a refund for unused government and airport taxes.
Group bookings of 10 or more have different cancellation rules.

Frequently Asked Questions

What is Icelandair cancellation policy?: Icelandair offers free cancellation within 24 hours of booking, plus fare-class-based fees after that window closes. Refund method: Refunds for eligible tickets or taxes are issued to the original form of payment.
Can I cancel a Icelandair flight for free?: Yes — If you book a ticket through Icelandair's booking channels, you can cancel the ticketed reservation without penalty and receive a refund if the reservation is made more than 2 days prior to the scheduled flight departure and is cancelled within 24 hours after purchasing.
What is Icelandair cancellation policy after 24 hours?: Once the 24-hour window expires, fees apply by fare class. Main Cabin: Economy Flex is fully refundable.. Basic Economy: Economy Light and Economy Standard are non-refundable. Unused government/airport taxes are refundable.. Premium: Saga Premium is non-refundable. Saga Premium Flex is fully refundable..
Does Icelandair 24-hour cancellation apply to agency bookings?: Tickets booked through third-party travel agencies (including consolidators) may not qualify for Icelandair's 24-hour free cancellation. The rule typically applies only to direct bookings on the airline's own website or app. Check your specific fare rules or contact Icelandair directly to confirm.
What is Icelandair's change fee?: Main Cabin: Economy Flex allows changes without a change fee, but fare difference may apply.. Basic Economy: Not permitted for Economy Light. For Economy Standard, change fee applies (e.g., $250 USD for US to Europe)..
How do I get a refund from Icelandair?: Refunds for eligible tickets or taxes are issued to the original form of payment.
What happens if I no-show on Icelandair?: No-show ticket is not valid for later use or refund. Remaining return and/or onward reservations will be automatically canceled.