Icelandair operates hundreds of flights and helps passengers reach the most attractive destinations in the World. Despite the effort to follow the schedule though, a lot of factors may affect flight departures and sometimes flights get cancelled or delayed. In order to make air traffic more punctual and reliable, European Commission approved air passengers protection regulation called EC261/2004.
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EC261/2004 established under what circumstances airlines like Icelandair are responsible to pay compensations. For the particular category of flight cancellation compensation amount starts at 125euro and can reach up to 600euro per passenger. Icelandair as well as other airlines are obliged to have an informative flyer on the check-in and ticket counter about the regulation and passengers’ rights. However, this does not always happen as in this way all passengers would be well aware of their rights.
If it happened to you to be affected by an Icelandair flight cancellation, you should know you can claim compensation of up to 600euro. It doesn't matter where you depart from: it can be any European airport or non-European one as long as the flight is operated by Icelandair. If you have been informed less than 14 days prior to the flight and the reason for cancellation is under the airline's control you should definitely claim your legal compensation. You can read more about flight cancellations here. European regulation EC261/2004 is the most passenger-friendly regulation and ensures hundreds of passengers are being protected in case of flight cancellations. Cancellations due to Covid-19 do not fall under EC261/2004 hence compensations are not granted in these cases, however, you have the right to get a full refund or a voucher for future flights. Always ask Icelandair airport staff what is the reason for cancellation. This will help to claim compensation and to check your eligibility. Icelandair as well as all other European operators are liable to pay according to EC261/2004. Make sure you do not accept any alternative offers like miles, points or gift vouchers as these will cancel the right to submit any further claim for compensation.
If Icelandair cancelled your flight they have to provide some basic assistance to their passengers as well as hotel accommodation if the waiting time is over 8h daytime or over 6h nighttime. In case you need to contact your relatives or friends, to cancel a hotel booking or anything else you need to communicate, you have the right to ask for 2 SMS or emails for free provided by the airline. Beverage and refreshments are offered in case of a 2h waiting time.