This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

WOW Air’s ultra-low fares to Iceland and beyond are a boon for budget-minded travelers, and while they’ve helped push Europe ticket prices down across the board, they’re also eating away at legacy carrier bottom lines — especially at home in Iceland.

Icelandair first began flying passengers in 1938 and now operates service to almost 50 destinations from Reykjavik’s Keflavik International Airport (KEF). WOW Air, meanwhile, is a newcomer, having recently celebrated its five-year anniversary. Its fleet is already 17 strong, however, and with 33 destinations and many more on the way, the carrier’s clearly keeping Icelandair executives on their toes.

Wednesday, Icelandair took a major first step to compete with WOW’s significantly lower pricing, with a new coach product called Economy Light. It isn’t a separate class of service, but sounds like a less restrictive version of the Basic Economy booking option we’ve seen in the US. Icelandair’s announcement stops short of stating that Economy Light fares will be cheaper than the coach rates currently on the market, but if the airline wants to compete with WOW, something’s really gotta give…

Screen Shot 2017-10-04 at 9.13.01 AM

The airline describes the new Economy Light booking class:

This option is designed for travelers taking a short weekend getaway or a quick business trip abroad. The new fare is also perfect when traveling with family members that don’t require additional luggage such as children or couples who can pack together. These passengers will enjoy the same quality of service from Icelandair including in-flight entertainment, non-alcoholic beverages, gate-to-gate wi-fi access and comfortable, spacious seats.

So, essentially, Light fares simply exclude a checked bag — one 50-pound bag is included with Economy Standard and Economy Flex fares. Once on board, Economy Light passengers receive the same service as everyone else. Starting ticket change rates are higher, though, at $275, compared with $200 for Standard and $75 for Flex. Economy Light fares still include a free stopover of up to seven days, and Light fares are eligible for mileage accrual at the same rate as Standard tickets.

I haven’t been able to find Economy Light fares just yet, however, so it isn’t clear just how much less expensive these tickets will be.

The best beginner points and miles card out there.
Chase Sapphire Preferred® Card

With great travel benefits, 2x points on travel & dining and a 50,000 point sign up bonus, the Chase Sapphire Preferred is a great card for those looking to get into the points and miles game. Here are the top 5 reasons it should be in your wallet, or read our definitive review for more details.

Apply Now
More Things to Know
  • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
  • Chase Sapphire Preferred® named a 'Best Travel Credit Card' by MONEY® Magazine, 2016-2017
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel.
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Intro APR on Purchases
N/A
Regular APR
17.74% - 24.74% Variable
Annual Fee
$0 Intro for the First Year, then $95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent Credit

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.