Icelandair CEO: 'Serious' if professions can shut down country through strikes

A vote on strike action by aircraft mechanics working for Icelandair began on Friday. Icelandair's CEO says it is a serious matter that occupational groups can effectively shut down the country through strike action if their demands are not met in wage negotiations. The collective agreement between Flugvirkjafélag Íslands (Icelandic Aircraft Mechanics' Association) and Icelandair expired at the end of 2025. The agreement had been in force since the beginning of 2021. Negotiations on a new agreement have been under way without success for more than a year. The dispute was referred to the State Mediator in February. Icelandair's collective agreements with its pilots and cabin crew have also expired. The association's chair declined to give RÚV an interview on Saturday. Icelandair: labour market model is unsustainable Bogi Nils Bogason, CEO of Icelandair, says the company has offered Flugvirkjafélag Íslands (Icelandic Aircraft Mechanics' Association) pay rises in line with those on the general labour market. "But they are making demands that go far beyond that." Bogi says the Icelandic economy cannot sustain such large pay rises because of high interest rates and inflation. He wants t