"Normally we have around 10,000 passengers a day and now we are flying around half of our scheduled flights," a spokesman for Icelandair said, adding that only eight out of a total 30 planes were able to fly.

A new meeting with the union has not been scheduled yet to resolve the dispute, the Icelandic carrier said.

(Reporting by Julie Astrid Thomsen, additional reporting by Elias Thorsson, editing by David Evans)