Icelandair delay and cancellation compensation

Icelandair is an EU carrier — EC 261 applies to much of what it flies

EC 261 covers any flight departing an EU airport on any airline, and flights arriving in the EU operated by an EU airline. Because Icelandair is an EU carrier, both legs of a European round trip are usually covered.

Where it applies, an arrival delay of three hours or more, a cancellation with less than fourteen days' notice, or denied boarding entitles you to a fixed sum by distance — roughly €250, €400 or €600. It is not payable when the cause was an extraordinary circumstance, which in practice means most weather and air traffic control disruption.

The one rule that applies everywhere

If Icelandair cancels your flight and you decline the alternative, you are owed your money back for the unused portion — whatever the reason, weather included. A voucher is something you may accept, never something you can be required to take.