Iceland Express has postponed the start of flights to Reykjavik from Gatwick until next year.
The new five times a week service was due to commence on September 16, but has been put back until next spring.
Passengers with bookings on the Gatwick service have been notified and offered either a full refund or an alternative flight, according to the airline.
An existing Stansted-Reykjavik route will continue to operate as a daily service.
The carrier’s marketing manager Birna Guðmundsdóttir said: “We have decided to move the launch of this exciting new service to the spring as it is the peak travel season for Iceland.
“While the number of bookings has never been higher for Iceland Express, we do not want the current increase in fuel costs to impact on the ticket prices for our customers.
“Iceland Express is remaining cautious in the current uncertain economic climate, while continuing to deliver the best possible service at the best possible price. Iceland Express is a budget airline and we want to ensure it stays that way.â€
The airline is also to introduce two Boeing 737-700s from September. The aircraft are more environmentally friendly and will result in a 25% reduction on fuel costs.
by Phil Davies
