Icelandair Refund Policy 2026: Saga Club, Cancellations & Cash Refunds
Updated: January 10, 2026 | By Erik Magnusson, Iceland Expert
Quick Summary
Icelandair offers free Iceland Stopover (up to 7 days). Flex fares are refundable. EU/Iceland departures qualify for EU261. Call 1-844-656-7300.
1. Icelandair Fare Types
| Fare | Changes | Refundable? |
|---|---|---|
| Economy Light | $150+ | Credit |
| Economy Standard | $75 | Cash (fee) |
| Saga Premium | Free | ? Cash |
Your Legal Rights Under DOT Regulations
Under DOT regulations, you have federal rights that airlines cannot override:
? Your Guaranteed Rights:
- 24-hour full refund: Cancel any ticket within 24 hours if booked 7+ days before departure
- Cash refund when airline cancels: Never have to accept vouchers for airline-caused cancellations
- Refund timeline: 7 business days (credit card) or 20 days (other payment methods)
- Tarmac delay protections: Must deplane after 3 hours (domestic) or 4 hours (international)
- Denied boarding compensation: $775-
2. FAQs
,550 for involuntary bumping
If denied your rights, file a complaint at airconsumer.dot.gov.
Baggage Fee Refunds
Paid for checked bags but your flight was cancelled or delayed?
- Flight cancelled by airline: Full refund of ALL baggage fees
- Bag delayed 24+ hours: Eligible for essential items reimbursement
- Bag lost permanently: Up to $3,800 liability (domestic)
Important: File claims immediately and keep all receipts.
2. FAQs
Does Icelandair charge change fees?
Light: $150+. Standard: $75. Saga Premium: Free.
Can I get cash refund?
Saga Premium is refundable. Standard has fees. Light gets credits. Icelandair cancels = cash + EU261.
Which US cities does Icelandair fly to?
Reykjavik connects to: New York (JFK), Boston, Washington DC, Seattle, Denver, Chicago, Minneapolis, Orlando.
What is Icelandair's refund policy for cancelled flights?
When Icelandair cancels your flight, you're entitled to a full refund to your original payment method - not just a voucher. If the airline offers only credit, you can insist on cash back. For schedule changes over 2 hours, refund rights typically apply. Call 1-844-656-7300 for help enforcing your refund.
Does Icelandair charge change fees?
Change fee policies vary by fare class and route. Many Icelandair fares now allow free changes (you pay only fare difference), while basic/light fares may still have restrictions. The 24-hour DOT cancellation rule applies to all US departures. Contact us at 1-844-656-7300 for your specific ticket.
How do I contact Icelandair customer service?
Skip the long hold times. Our travel specialists at 1-844-656-7300 have direct access to Icelandair reservation systems and can resolve issues faster than the general customer service line. We're available 24/7 for urgent travel situations.