MIAMI – Icelandic carrier Icelandair (FI) announced it reached an agreement for the sale of three of its passenger Boeing 757-200 for conversion into cargo aircraft, a company press release stated on October 8.

According to the statement, “the final documentation is expected to be completed in the upcoming weeks,” with a sale price of US$21m, “US$ 2-3m above book value.” The move is part of FI’s plan to gradually phase out the Boeing 757 from its fleet.

The airline’s President and Chief Executive Officer Bogi Nils Bogason said in the release that “the sale of the three Boeing 757 aircraft is a positive step for the Company at this time when flight operations are at a minimum level,” adding that the move “shows that the 757 aircraft still has considerable value after long-lasting service for the company and continues to be operated for years to come.”

Bogason also added that “due to the COVID-19 pandemic, the company has excess aircraft in storage despite the sale of these three aircraft which will be ready to operate when travel restrictions will be lifted and demand for air travel increases again.”

Photo: Liam Funnell

Icelandair Navigates through COVID-19

The last time we heard from the airline was back in August when it reached an agreement with Boeing over 737 MAX compensation. The airline has also made agreements with all of its creditors as it aims to get over the COVID-19 pandemic.

The deal would see the order-book of 737 MAX aircraft reduced by four units. FI had delayed deliveries of the remaining six to a varied timeline of Q2 2021 and Q1 2022, respectively.

On July 19, the carrier and the Icelandic Cabin Crew Association (FFI) resumed negotiations and signed a new collective-bargaining agreement which is valid until September 30, 2025. Two days before, we saw the dramatic move by FI to fire all of its Flight Attendants after failed negotiations between the airline and the FFI. 

Featured image: Liam Funnell