Icelandair financing two Boeing 737 MAX aircraft

And Icelandair Boeing 737 on the tarmac.
MarcelX42, CC BY-SA 4.0, via Wikimedia Commons

LONDON – Icelandair has entered an insurance backed financing agreement with Itasca Re and NORD/LB of Hanover in respect of two Boeing 737 MAX 8 aircraft.

The aircraft are currently fully owned by Icelandair and were purchased using the Company´s own funds in the fall of 2022.

The total consideration of the transaction accumulates to around USD 67 million with closing anticipated by the end of January 2023.

Bogi Nils Bogason, President & CEO of Icelandair Group said:“Icelandair is delighted to team up with such strong parties as NORD/LB and Itasca Re on this important financing structure.”

“The campaign we ran resulted in favorable terms, which clearly demonstrate the faith financiers have in the value of the 737 MAX aircraft, as well as in the strength of Icelandair and its proven business model.”

2022 performance


The lease announcement follows a successful year end closure for the Icelandic carrier for 2022. In December 2022, the number of Icelandair’s passengers was 233,500, compared to 168,500 in December 2021.

Total number of passengers in 2022 reached around 3.7 million, compared to 1.5 million in 2021, an increase of 150% between years. In 2022 capacity has steadily increased, reaching 91% of the 2019 capacity in December, compared to 53% in January 2022 and 77% in June.

In December, the number of passengers on international flights was 214 thousand compared to 149 thousand in December 2021.

Whilst passenger numbers showed a promising rise for the airline last year, on time performance suffered a little, though a number of external factors played a part

On time performance on international flights was 62.4%. Load factor on international flights was 73%, compared to 71% in December 2021. On time performance, load factor and the overall operation was significantly affected by disruptions caused by extreme weather in Iceland in December.  

On the domestic front, the airline fared a little better, managing to uphold a reasonable on-time performance figure despite prevailing poor conditions.

The number of passengers on domestic flights was 20 thousand, compared to 19 thousand in December 2021. On time performance was 81% despite significant weather disruptions during the month. The load factor on domestic flights was 73% compared to 70% in December 2021.

Icelandair Cargo 2022


December 2022 also saw Icelandair Cargo take delivery of the company’s first Boeing 767 widebody cargo aircraft. The aircraft arrived in Iceland recently and took off for the first scheduled cargo flight to Liège Belgium on the evening of Thursday 8th December.

Additional to Liège, the 767’s schedule will include cargo flights to New York and Chicago, three times a week to each destination.

In the first quarter of 2023, Icelandair will also add a second 767 to the fleet and start direct service to Los Angeles as well as increasing frequency to other destinations.

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