Icelandair seeks arbitration in dispute with aircraft mechanics

Icelandair has proposed referring a pay dispute with the Icelandic Aircraft Engineers Association to an independent arbitrator, mbl.is reports. The airline says it has presented a fair and responsible contract offer, but the two sides remain far apart on wages.

The association has announced an indefinite general strike involving all aircraft mechanics employed by Icelandair. The strike is scheduled to begin at 12:01 a.m. on September 23, 2026.

Icelandair said the strike would have a significant effect on its flight schedule if the parties fail to reach an agreement beforehand. The company said it was not yet possible to assess the potential financial impact.

“It is clear that the parties disagree significantly on the wage issue,” Icelandair said. Its negotiating committee has repeatedly proposed that the parties jointly refer the dispute to a contractually agreed arbitration panel.

Icelandair is assessing the potential impact on passengers. If changes are made to the flight schedule, the airline said it would contact affected passengers and urged them to ensure that their correct contact details are included in their booking through the company’s website or app.