IcelandAir Active Deals, Sales & Codes in August, 2026

Icelandair has connected Europe and North America via its hub at Keflavík International Airport since 1937. As the flagship carrier of the Icelandair Group, the airline operates a substantial network of transatlantic routes, flying to dozens of destinations across both continents. It remains the dominant aviation player in Iceland, acting as a crucial bridge for millions of passengers each year.

While primarily known for its flight network, the carrier also packages together holidays, hotel stays, and car hire. The standout feature for many travellers is the Icelandair Stopover, which allows passengers flying across the Atlantic to break their journey in Iceland for up to seven days without paying extra for the flight itself. It effectively turns a standard transatlantic trip into a two-destination holiday.

Onboard, passengers can choose between Economy, Economy Comfort, and the premium Saga Class, which offers enhanced dining and lounge access. The airline’s loyalty scheme, Club Iceland, lets frequent flyers earn Saga Points to redeem on future bookings. Beyond the aircraft, their holiday packages often bundle northern lights tours, spa retreats, and city breaks in Reykjavík.

We think combining these inherent travel perks with the promotional codes below makes for a much cheaper booking, ensuring you get the most out of your transatlantic journey.

When is the cheapest time to fly across the Atlantic? We generally see the lowest base fares for North American routes during the late autumn and early spring shoulder seasons. January and February are particularly quiet, meaning Icelandair often drops prices on city breaks and flights to hubs like New York or Boston to fill cabins. Avoid booking transatlantic trips in July or August if you are on a strict budget, as peak summer demand pushes prices up considerably.

Can I combine a stopover with a discounted holiday package? Yes, but it requires a bit of manual tweaking. The automated holiday packages on their site usually bundle flights, hotels, and car hire for a single destination. If you want to utilise the seven-day stopover in Iceland, we recommend booking your transatlantic flights separately using a route discount, and then arranging your Icelandic accommodation and northern lights tours directly through their holiday add-ons. This often works out cheaper than a rigid pre-packaged multi-centre deal.

Is Saga Class worth the upgrade on a short transatlantic flight? For flights from London to Keflavík, which only take around three hours, the premium cabin feels a bit excessive unless you desperately need lounge access at Heathrow or Gatwick. However, once you are on the longer five-to-six-hour leg across the Atlantic to the US East Coast, the lie-flat seats, upgraded dining, and priority boarding make a noticeable difference. We suggest saving your Saga Points for the longer ocean crossings rather than the initial European hop.