
Icelandair uses Keflavík's mid-Atlantic position to link around thirty European cities with North American gateways using narrowbody aircraft, arranged in waves that let almost any European city connect to almost any North American one. The stopover product means many passengers deliberately break the journey in Iceland, which changes how disruption is treated: two separate trips instead of one connection.
Iceland is not in the EU but is part of the European Economic Area, where Regulation 261/2004 applies in full, so Icelandair is treated as a Community carrier. That means a Boston–Keflavík–Copenhagen trip is covered end to end, including the North American departure, and long-haul arrivals more than three hours late can reach €600.
Icelandic weather, volcanic activity and North Atlantic storms are genuine extraordinary circumstances that defeat a compensation claim, but they never remove the airline's duty to feed you and pay for a hotel until it can fly you on. If you booked a stopover, remember each leg is judged on its own: a delay on the second flight is measured against that flight's scheduled arrival, not the whole trip.

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