Icelandair will furlough all of its cabin crew after negotiations between the airline and its labor association failed. Starting July 20, the airline will give their pilots the responsibility of the flight attendants. This means the pilots will be in charge of serving passengers, as well as the safety of all onboard.

Icelandair's flight attendants are represented by the Icelandic Cabin Crew Association. Since January 2019, the has been no legitimate contract between the airline and the Cabin Crew Association, but there were talks between the two. The members of the Cabin Crew Association rejected a new bargaining agreement proposed by the Icelandic carrier on July 8, even though the agreement had been previously agreed to and signed by the Cabin Crew Association. When asked about the failed negotiations, the airline stated, "it has become evident that a mutually agreed conclusion will not be reached." The failed negotiations not only resulted in the firing of all of the airline's cabin crew, but the discontinuation of the employment relationship with the Cabin Crew Association as well.