Iceland came to London earlier, as the island destination continues to recover from the Covid-19 pandemic and welcome retuning guests.

Optimism is increasing in the market, with holidaymakers drawn by the stunning scenery, quirky capital, Reykjavik, and a strong cultural scene.

At the heart of it all is Icelandair, which has been vital to the local tourism sector.

Here Breaking Travel News speaks to Sylvía Ólafsdóttir, chief customer officer with the flag-carrier, to find out about the coming year.

Breaking Travel News: How is the Iceland tourism sector faring right now – are we fully recovered, or is the cost-of-living crisis now taking a toll?

Sylvía Ólafsdóttir: The tourism sector in Iceland has recovered well after the pandemic.

At Icelandair we reached 82 per cent of 2019 capacity in the third quarter of 2022 and expect to go up to 100 per cent in the winter months.

The booking status in the fourth quarter is strong although we are expecting some headwinds this winter.

Before we arrived with Around the Corner in London, we did some research among the British public.

According to that research, the consumer desire to travel is still prevalent, with four out of five Brits looking to make lifestyle changes to still be able to travel in the next six-to-12 months.

Just under half of people surveyed are cutting back in a variety of ways to still fund travel, including stopping takeaways, or opting for nights at home versus nights out.

This and the reaction we got in London makes us positive for the Icelandic tourism sector.

BTN: You reported a strong increase in profits earlier this month – what has driven that?

SÓ: We have had steady increase in the number of passengers and have been successful in planning our schedule and revenue management according to demand.

This has resulted in record passenger revenue, record load factor and high unit revenue this quarter.

Achieving these great results against a backdrop of considerable challenges during the ramp-up phase has required a joint effort across the company.

Our employees have, with dedication and hard work over the past weeks and months, managed to get the company through this ramp-up while delivering excellent customer service.

Our tourism partners have also reacted quickly, ramping up tourism services in Iceland in record time.

This joint effort has gotten us to where we are today.

BTN: Any concerns over the future of the British market, with Heathrow introducing a cap on flights this winter?

SÓ: Heathrow airport has now reviewed the terminal capacity limit for the winter except for X-mas and New Year, so the Icelandair schedule is confirmed for the winter.

BTN: Icelandair recently released an opportunity for tender ahead of a 2025 fleet renewal – can you tell me anything about the aspirations there?

SÓ: We are gradually retiring our Boeing 757 that has been our workhorse for decades.

We have been moving towards the Boeing 737 MAX, a new generation aircraft that has been an important contribution to the reduction of our CO2 emissions, and the Boeing 767 widebody aircraft.

With the tender we want to see what the two large aircraft manufacturers have to offer.

Our business model revolves around the location of Iceland between Europe and North America, so we are looking at airplanes that can reach our destinations on both sides of the Atlantic, support our growth plans and at the same time contribute to the reduction of CO2 emissions in our operations.

More Information

Find out more about visiting Iceland on the official website or more about Icelandair here.