Icelandair’s Saga Premium isn’t traditional business class, but it’s carved out a loyal following as a smart middle ground for crossing the Atlantic. You get spacious recliners (not lie-flat beds), priority perks, lounge access in Reykjavik, free Wi-Fi, and Icelandic-inspired meals. It’s closer to US domestic first class than international business, but paired with competitive fares and that free stopover program, it works.
I’ve been flying Icelandair regularly for years, and 2026 is shaping up to be their most interesting year yet. With PLAY now out of the Iceland hub game entirely, Icelandair has more breathing room to expand. They’re adding new A321LRs with upgraded cabins, launching routes to Venice and Faro, and moving into a brand new terminal at JFK. If you’ve been curious about Saga Premium or just want to know what’s actually changed, this is everything that matters right now.
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Overview of Icelandair
Icelandair isn’t your typical European carrier, and honestly, that’s what makes it pretty interesting. Based out of Keflavík International Airport, they’ve basically turned Iceland’s location into their biggest advantage. You can’t fly transatlantic without stopping somewhere, so why not make it Reykjavík?
The fleet is going through a major refresh right now. By summer 2026, they’ll be operating 35 mainline aircraft: 21 Boeing 737 MAXs, seven Airbus A321LRs, five Boeing 757s, and two Boeing 767s. The big story is the shift to Airbus. The first A321LR landed in December 2024, with more arriving through 2026 before the longer range A321XLRs start showing up in 2029. The aging 757s and 767 widebodies are being retired faster than originally planned, with all widebodies gone by the end of 2026.
What’s cool about Icelandair is their stopover program. You can stay in Iceland for up to seven days at no extra airfare when flying between North America and Europe. It’s two trips for the price of one, and if you’re flying Saga Premium anyway, it’s worth taking advantage of. I always tell people to build in at least two or three days in Reykjavik if their schedule allows it.
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What’s new with Icelandair Saga Premium in 2026?
If you’re like me and constantly hunting for the best transatlantic business class, you’ll want to know what Icelandair is doing in 2026. They’re making some significant changes that you’ll want to know about.
The A321LR fleet is expanding fast
Icelandair is adding two more A321LR aircraft in late 2026, bringing the total to at least six before the first A321XLR arrives in 2029. These are a huge upgrade from the older planes. You’ll find 22 Saga Premium seats with 42-43 inches of pitch, much better recliners, and gorgeous 16-inch 4K OLED screens that finally support Bluetooth headphones. The Wi-Fi is also noticeably faster. If you’re booking in 2026, it’s worth checking which aircraft you’re on. Routes like Seattle, Miami, Newark, and Portland will feature this upgraded product.
New routes worth getting excited about
Icelandair is expanding its route map with some interesting directions. Faro, Portugal launches March 26 with twice weekly service to the Algarve. Venice starts May 22 with three weekly flights through October, becoming Icelandair’s third Italian destination. Miami launched in October 2025 and runs through May 2026 as their first winter only North American route. Edinburgh and Malaga started in September 2025 and continue strong into 2026.
The Southern Europe expansion opens up creative stopover possibilities. You can now route through Reykjavik to Venice, Faro, or Edinburgh between North America and Europe, which wasn’t an option before.
JFK is getting a massive upgrade
Icelandair is moving to the brand-new Terminal 6 at JFK in 2026 as part of the airport’s $19 billion renovation. This should be a significant improvement for anyone connecting through New York. I fly from the East Coast to Europe regularly, and I’m particularly excited about this.
The 767s are retiring early
Icelandair is phasing out its Boeing 767 widebodies by the end of 2026, three years ahead of schedule. This actually benefits Saga Premium passengers. The recliner-style product works better on narrowbodies anyway, and the fleet becomes more consistent across the board.
Icelandair business class fleet: a detailed comparison
I’ve flown Saga Premium on most of Icelandair’s aircraft types, and the experience varies quite a bit depending on which plane you’re on. Here’s what to expect across the fleet.
Boeing 757-200 & 757-300
The 757s are the old guard, and they’re being retired through 2026. If you end up on one (mainly on older routes or off-peak flights), you’ll get five to six rows of Saga Premium in a 2×2 layout with 40 inches of pitch. These seats don’t lie flat.
They’re good recliners, similar to what you’d find in US domestic first class. For the six to eight hour flights they typically operate, they’re comfortable enough, but you’re not getting a proper flat bed for sleeping. Each seat has power outlets and USB charging. The 757s will be fully retired by early 2026, so your chances of flying them are shrinking fast.
Boeing 767-300ER
The 767s operate in a 2-1-2 configuration in Saga Premium, with a handful left in the fleet. They’re all retiring by the end of 2026, which is three years earlier than originally planned. I’ve only been on this layout once, and while it’s fine, it feels more like enhanced premium economy than true business class. The single seats are nice if you’re solo, but overall the hard product doesn’t impress.
Boeing 737 MAX
This is where things get much better. Icelandair has 21 of these (17 MAX 8s and 4 MAX 9s), and they’re the workhorses of the fleet. Saga Premium has 16 seats in a 2×2 layout across four rows. The seats are Aviointeriors Andromeda recliners with 40 inches of pitch, 20.5 inches of width, and five inches of recline. They have proper footrests and feel substantially more comfortable than the older planes.
The entertainment screens are 13 inches, Wi-Fi is fast and it’s free in Saga Premium via Viasat, and there are thoughtful touches like drink holders built into the armrests. For European routes especially, this is one of the best business class products out there. It’s not lie-flat, but for three to four hour flights, you don’t really need that.
Airbus A321LR (the one to book)
The A321LR is Icelandair’s newest and best product. The first one arrived in December 2024, with more coming through 2026 before the even longer range A321XLRs show up in 2029. Saga Premium has 22 seats across six rows in a 2×2 layout. The seats are upgraded Geven Comoda recliners with 42 to 43 inches of pitch (compared to 40 on other aircraft), eight inches of recline, and both leg and footrests.
The real upgrade is the entertainment system: 16-inch 4K OLED screens from Panasonic that look incredible, plus you can finally connect your own Bluetooth headphones. The Wi-Fi is also noticeably faster thanks to Viasat.
My pro tip: Routes like Seattle, Miami, Newark, and Portland are operating with the A321LR. If you’re booking one of these, you’re getting the best Saga Premium experience in the fleet.
How to book Icelandair Saga Premium for less
I’ve been flying Icelandair out of Boston for years. I’ve learned that paying full fare for Saga Premium is almost never necessary. Here are the strategies that work.
Use Alaska Mileage Plan miles
This is probably the best-kept secret for booking Icelandair. Alaska Airlines is a partner, and you can book Saga Premium awards through Alaska’s Mileage Plan program. Award pricing is dynamic and there’s no published chart, but transatlantic business class redemptions are often more reasonable than booking directly with Icelandair’s own program.
The real advantage here is that Alaska is a transfer partner with Marriott Bonvoy. If you have a stash of hotel points, you can convert them to Alaska miles. It’s not the most efficient transfer ratio, but it’s an option if you’re sitting on a pile of Marriott points with no immediate hotel plans.
Note: You’ll pay a $25 roundtrip partner booking fee plus any carrier surcharges, which can add up on Icelandair.
Book with Icelandair Saga Club points
Icelandair’s own loyalty program, Saga Club, uses dynamic pricing for award tickets. There’s no published award chart, so you’ll need to search specific dates to see how many points you need. In my experience, the pricing can be all over the place depending on demand.
You can transfer points to Saga Club from a few hotel programs. Both Hilton Honors and Radisson Rewards transfer at a 10:1 ratio, which isn’t great. But, if you’re flush with hotel points and want to fly Icelandair specifically, it’s there.
Watch for cash sales and mistake fares
Icelandair runs sales pretty regularly, especially during shoulder season. I’ve seen roundtrip Saga Premium fares from the East Coast to Europe dip under $1,200. That’s genuinely competitive.
This is where Going (formerly Scott’s Cheap Flights) becomes valuable. Instead of manually checking fares every day, their service monitors prices and sends alerts when Saga Premium fares drop significantly. I’ve used Going for years, and it’s how I’ve caught most of my best Icelandair deals. You can try their premium version with my code JON25 for 25% off.
Consider paid upgrades
If you’ve already booked economy and prices look better there, Icelandair sometimes offers paid upgrades closer to departure. You might see upgrade offers via email, during online check-in, or when you manage your booking on their website. These aren’t always cheaper than just booking Saga Premium outright, but if economy fares are significantly lower and upgrade offers come through at a reasonable price, it can work out.
Book early for the best selection
Saga Premium cabins are small, especially on the 737 MAX with only 16 seats. Popular routes and peak travel dates sell out quickly. If you know your dates and want Saga Premium, booking well in advance gives you the best shot at reasonable pricing and good seat selection. Spring (April through June) and fall (September through November) tend to have better award availability and lower cash fares than peak summer.
Use the stopover to add value
Even if the Saga Premium fare isn’t dirt cheap, remember you can add up to seven days in Iceland at no extra airfare cost. If you were considering visiting Iceland as a separate trip anyway, building it into your Europe routing through Icelandair suddenly makes the fare much more competitive. You’re essentially getting two trips for one ticket price.
Ground experience: check-in, lounges and baggage
The Saga Premium experience starts before you board. Icelandair does a decent job of making the airport side feel smoother than economy.
Check-in and priority perks
With a Saga Premium ticket, you get dedicated check-in counters and priority security where it’s available. At Keflavík, this works reliably. At other airports, it’s more hit or miss depending on the facility. You’ll also get priority boarding, which matters more on the smaller aircraft where overhead bin space fills up fast.
The Saga Lounge at Keflavík
If you’re connecting through Reykjavik, the Saga Lounge is genuinely one of the better parts of flying Icelandair. It’s a proper lounge with clean Nordic design. The space is large at nearly 15,000 square feet, with floor to ceiling windows looking out over the tarmac. There are different seating zones, so you can find quiet corners if you want to work or relax. Plus, there are charging outlets everywhere.
Food is closer to what you’d find at a decent Icelandic café than typical airport lounge fare. You’ll find hot dishes, salads, bread, cheese, and desserts. The drink selection is impressive, especially the gin selection with 20+ varieties including Reykjavík Distillery gin and Reyka vodka. Champagne and beer are self-serve.
There are also showers if you’re on a long layover, and a small Clarins spa area where you can book complimentary facial treatments. The lounge is open from 5:00am to 5:00pm in winter, with extended hours from 5:00am to 8:30pm from mid-May through mid-September.
Important lounge access change
As of April 1, 2025, Icelandair cut outstation lounge access for basic Saga Premium tickets. You still get into the Saga Lounge at Keflavík, but access to partner lounges at airports like New York, Boston, London, Copenhagen, and others is now only available if you book Saga Premium Flex (the more expensive fare) or have elite status with Saga Club.
If you’re booking the base Saga Premium fare, you only get lounge access in Iceland. It’s a meaningful downgrade from what the product used to include, and honestly, it’s one of the things that makes Saga Premium less competitive compared to other transatlantic business options.
Baggage allowance
Saga Premium passengers can check two bags up to 70 pounds each. Carry-on is one bag up to 22 pounds plus a personal item. This is one area where Icelandair still delivers solid value.
- Read next: Most Beautiful Places in Iceland
Onboard experience: seats, sleep and amenities
Once you’re settled into your seat, Saga Premium feels like a solid middle ground between premium economy and traditional business class.
Saga Premium seats
On most aircraft, you’re in a 2×2 layout with everyone having direct aisle or window access. The seats are recliners, not lie-flat beds, which is the biggest difference between Saga Premium and full business class on other airlines. On the 737 MAX, you get 40 inches of pitch, 20.5 inches of width, and five inches of recline. The A321LR bumps that up to 42-43 inches of pitch with eight inches of recline, which is noticeably more comfortable. Both have footrests and adjustable headrests.
The seats feel sturdy and well-padded, more substantial than most premium economy products. For daytime flights or flights under five hours, they’re perfectly fine. For overnight transatlantic flights, you can sleep but you’re not getting the same flat bed rest you would on traditional business class.
Entertainment and connectivity
The 737 MAX has 13-inch seatback screens with a decent library of movies, TV shows, and music. The A321LR is where things get much better: 16-inch 4K OLED screens that are legitimately impressive, plus Bluetooth connectivity so you can use your own headphones instead of the airline pair.
In-flight Wi-Fi is free for Saga Premium passengers and works well. Icelandair uses Viasat, which is fast enough for email, work, video calls, and even some streaming. You can connect up to two devices at once. Each seat has a universal power outlet and USB-A charging. The A321LR adds wireless charging built into the console.
Sleep and bedding
When you board, there’s a pillow and blanket at your seat. On North American routes, you’ll also get an amenity kit with basics like an eye mask, earplugs, socks, toothbrush and toothpaste, and Icelandic skincare products like lip balm and hand lotion. The kits themselves are designed by local Icelandic artists and are actually quite nice.
The cabin gets dark fairly quickly after meal service on night flights, and the crew is good about not disturbing you once you’ve settled in. The Boeing Sky Interior lighting on the MAX creates a calmer atmosphere, and the cabin is relatively quiet. You won’t sleep as well as you would in a lie-flat seat, but I’ve managed decent rest on overnight flights by using the footrest, cranking the recline, and positioning the pillow right. If sleep is your absolute priority on a redeye, this might not be the product for you.
Other small touches
Icelandair provides over-ear noise cancelling headphones in Saga Premium, which are decent quality. There are bottles of Icelandic Glacial water at every seat when you board, and the crew keeps them coming throughout the flight. The lavatories are standard aircraft bathrooms, nothing special, but they’re kept clean and stocked.
- Read next: Airlines Flying to Iceland from the US
Dining and drinks in Icelandair Saga Premium
I’m not going to lie: I’ve had some genuinely memorable meals in Saga Premium, which is not something I say about most business class food. Icelandair leans hard into Icelandic ingredients, and it shows. On North American routes, you get a three-course meal after takeoff, then a lighter service before landing. European routes typically get a two or three-course meal depending on flight length.
You’ll often see dishes featuring Icelandic lamb, Arctic char, or cod, alongside more familiar international options. I’ve had cold salmon “three ways” with blini pancakes, lamb shank with vegetables, and various fish preparations that were all better than I expected at 35,000 feet. The food genuinely tastes good, which isn’t a given in any cabin class.
On overnight flights, you can ask the crew for a quicker service or to skip courses if you just want to sleep. Between meals, there are snacks available if you ask, though Icelandair isn’t as proactive with the mid-flight snack service as some airlines. You’ll usually find Icelandic chocolate offered at some point. Dessert is often surprisingly good, with options that feel more thought-through than your typical airline sweet course.
Icelandair’s drink selection focuses heavily on Icelandic products: Gull beer, Reykjavík Distillery gin, Reyka vodka. The champagne is usually Nicolas Feuillatte or similar, and there’s a selection of wines that’s solid if not exceptional. The gin selection is impressive with six different Icelandic gins to choose from. The crew will make cocktails if you ask, and I’ve had some good gin and tonics and espresso martinis at cruise altitude.
If you’re not drinking alcohol, there are plenty of soft drinks, juices, and decent coffee and tea options. The service style is relaxed and friendly without being overly formal. It feels more approachable than some business class cabins where everything is very rehearsed and stiff.
Saga Premium vs other transatlantic business class options
I’ve been comparing transatlantic business class options for years, and people always ask me how Saga Premium stacks up. Here’s my honest take based on flying most of these products multiple times.
Saga Premium vs British Airways Club Suite
British Airways’ Club Suite is the better hard product when you can get it. The seats are private suites with doors, lie-flat beds, and a proper 1-2-1 layout. If sleep is your priority on overnight flights, BA wins on the seat alone.
The catch is consistency. BA still flies a lot of routes with the older Club World layout, which is dated and cramped. Even in 2026, it’s still a lottery. Icelandair is more predictable, especially on the 737 MAX and A321LR routes. You know what you’re getting.
Food and service are where things get interesting. Icelandair’s meals feel more thoughtful and locally inspired. BA can be hit or miss, and the service often feels more transactional. The Saga Lounge in Keflavík is also nicer than most BA lounges outside Heathrow.
My take: If you can guarantee Club Suite and want a lie-flat bed, book BA. If you want a more reliable overall experience with better food and the stopover option, Saga Premium is the smarter choice.
Saga Premium vs Lufthansa Business Class
Lufthansa business class is efficient and professional, which is exactly what you’d expect from a German carrier. Service is polished, the operation runs smoothly, and connections through Frankfurt or Munich work well. The problem is the product itself.
Lufthansa is deep in a fleet transition with its new Allegris cabins. Some planes have the new suites with doors and privacy. Others still have the old 2-2-2 layout that feels cramped and outdated. It’s a complete lottery which one you get, and the rollout has been painfully slow. Icelandair’s newer aircraft feel more modern and cohesive than Lufthansa’s mixed fleet. The food on Saga Premium is also more interesting, where Lufthansa can feel a bit sterile and by-the-numbers.
My take: If you’re connecting through Germany and want something predictable, Lufthansa works. If you want the journey to feel more enjoyable and memorable, Saga Premium usually delivers better.
Saga Premium vs Delta One
For US-based travelers, this is probably the most relevant comparison. Delta One (especially the suites with doors) is a very strong product. The seats are private, the service is smooth, the entertainment is excellent, and everything just works. If you’re loyal to Delta and value consistency within one ecosystem, it’s hard to beat.
Where Saga Premium wins is character and value. The food and drink feel more memorable, the stopover program adds flexibility, and the pricing is often significantly lower. You’re also not locked into Delta’s hub structure, which opens up more routing options through Reykjavík.
My take: If you’re starting in the US, care about SkyMiles, and want a true lie-flat bed, Delta One is the safer choice. If you’re willing to mix carriers for better value and want to add Iceland to your trip, Saga Premium offers more adventure for less money.
Saga Premium vs other premium economy products
This is where Saga Premium really shines. Compared to premium economy on airlines like United, American, or even most European carriers, Saga Premium offers significantly more: better seats, proper meals with real service, lounge access in Keflavík, free Wi-Fi, and priority everything.
The pricing often overlaps with premium economy on legacy carriers, especially if you catch a sale. At that point, there’s no contest. Saga Premium gives you a much better experience for similar or sometimes even less money. The only downside is the lack of lie-flat beds, which premium economy doesn’t have either. But everything else about Saga Premium feels a tier above.
Is Icelandair Saga Premium worth it?
For most people, yes, if you know what you’re getting. Saga Premium isn’t lie-flat business class. It’s more like a really good domestic first class recliner. And honestly, for flights that are mostly under six hours, that’s fine. The food is good, the service is friendly, and the Saga Lounge at Keflavík is genuinely pleasant.
The catch is the lounge situation changed in April 2025. Basic Saga Premium now only gets you into Keflavík. If you want lounges at your departure airport, you’ll need to upgrade to Saga Premium Flex.
If you can find Saga Premium tickets for under $1,000 roundtrip (which happens fairly often), or book it with miles, it’s absolutely worth considering. The free Iceland stopover sweetens the deal if you fancy a few days exploring. You’ll sleep decently, eat well, and avoid the economy scrum. Just don’t expect Emirates!
Frequently Asked Questions (FAQs) about Icelandair business class
Are you still curious about which airline is the best to fly to Iceland? Here are some popular questions (and answers) I get that will help decide whether Icelandair business class is the right option for you.
Does Icelandair’s business class seats lie flat?
No, the business class seats on Icelandair do not lie flat. They are more akin to premium economy seats found on other international flights. The seats offer an ample recline but not a fully flat experience.
Does Icelandair serve alcohol?
Yes, Icelandair serves alcohol. Passengers can enjoy a range of beverages, including champagne, beer, wine, and spirits. They feature some nice local options like Reykjavik Distillery gin and Reyka vodka.
Is Icelandair a budget airline?
Icelandair is not considered a budget airline. It provides a full-service experience with various classes of service, including a business class. While it may offer competitive pricing, especially for transatlantic flights, it maintains a standard of service that aligns more closely with traditional carriers than budget airlines.
- Looking to find Icelandair business class deals for under $700 roundtrip? You’ll want to sign up for Scott’s Cheap Flights (Going.com). While the free version is great for economy deals, the Elite version is what you’ll need to find cheap business and first class deals.
