Iceland Express Reduces in Scale

Posted 05/01/2012

Icelandic low-cost carrier Iceland Express is to offer a reduced seasonal programme in Summer 2012 as it prepares itself for increased competition in the local market.  The airline has had a tough few months following the launch of rival Wow Air and then the closure of Astraeus Airlines at the start of December 2011: the UK charter carrier had operated Boeing 737 and 757 aircraft on Iceland Express’ behalf.

The airline is now operating two Airbus A320s leased from Holidays Czech Airlines, part of Prague-based Czech Airlines, but has had to modify its network due to the reduction of its fleet.  According to the airline’s latest schedules, flights from Reykjavik to Aalborg, Edinburgh, Friedrichshafen, Newark, Oslo, Stockholm, Winnipeg and Zurich are not planned for summer 2012, while its service between Akureyri and Copenhagen will also not operate.  There will also be capacity reductions on routes from Reykjavik to Alicante, Berlin, Billund, Copenhagen, Gothenburg, London Gatwick, Paris CDG and Warsaw when compared to last summer.

Iceland Express already competes with Icelandair but will face increased competition from this summer when WOW Air inaugurates flights on 12 international routes from Reykjavik with effect from June 1, 2012.  This network includes seven markets already served by Iceland Express. 

In the past year, thanks in part to an aggressive network expansion and new links to North America, Iceland Express had increased its share of the Icelandic international O&D market from Reykjavik to 23.6 per cent, up from 17.5 per cent in the previous 12 month period.  This was mainly at the expense of Icelandair whose own share fell from 74.8 per cent to 65.8 per cent during the period.

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