Icelandair has joined the increasing number of airlines segmenting their economy-class fares with the announcement of a new pricing structure.

The Keflavik-based carrier is introducing a new budget level, economy light, which aims to attract passengers traveling with carry-on luggage only.

Unlike the basic economy fares increasingly being introduced in the US, Icelandair’s new fare will allow passengers the same onboard service and amenities as other economy-class passengers, including the ability to pre-select their seats, plus non-alcoholic drinks and Wi-Fi. Economy Light provides a carry-on allowance of up to 10 kg (22 lbs).

“We are making some progressive changes in our service and among those is Economy Light,” Icelandair’s SVP-sales & marketing Guðmundur Óskarsson said.

“This option is designed for travelers taking a short weekend getaway or a quick business trip abroad.” He suggested it would also fit travelers flying with family members who did not require additional luggage such as couples who could pack together.

With the introduction of economy light, the airline’s former economy class will become economy standard, and Icelandair economy class flex will become economy flex.  Both the latter fares offer greater flexibility, along with one checked and one carry-on bag.

“We are widening our product options to meet the various needs of our passengers,” Oskarsson said. “This will make traveling more flexible and affordable, to better serve the many different types of travelers who fly with us.”

Icelandair flies to 20 North American gateways and more than 25 cities in Europe, via its Keflavik hub. It is projected to carry four million passengers in 2017.

Alan Dron