Icelandair faces new cabin crew strike threat

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Icelandair is facing further disruption in May and June after members of its cabin crew said they would begin industrial action later this month in a dispute over pay.

The Icelandic Cabin Crew Association has banned all overtime from the morning of 18 May and members are to hold a 12h strike on 27 May, followed by further stoppages on 6, 12 and 19 June unless annual pay rises can be agreed.

Icelandair says it is not certain what effect the strike and overtime ban will have on financial results.

Meanwhile, the Reykjavik-based airline says a pilot strike on 9 May led to more disruption than it had predicted, causing 51 flights to be cancelled on the day, rather than the 26 forecast.

The disruption was made worse by the FIA union banning pilots from working overtime, says Icelandair.

The dispute centres on annual pay rises: Icelandair says pilots are demanding “much, much more” than the 2.6% currently on the table. The next round of talks with the union are due to take place later today.

Further walkouts by pilots are planned for May, with the next scheduled for 16 May.

The airline says the financial impact of disruption from strike action probably exceeds the $13-15 million it estimated earlier this month.