The first Boeing 757-200 landed in Iceland in 1990, and was named Hafdís. There was seating for 189, with 22 spacious seats in Saga Class. A second aircraft of this type, Fanndís, arrived a month later. Svandís, the third in the series, was leased to Brittania Airlines, and did not enter service with Icelandair until 1993. The new fleet was especially economical. Fuel costs were now 30-40% lower. In addition, maintenance costs were much less and crews were smaller. All these factors contributed to the increased efficiency of the airline. Fifty pilots were laid off, but most moved to other jobs in the industry. However, this package was not entirely satisfactory, and a number of young pilots lost their jobs.
In 1995, a decision was taken to use only one type of aircraft on international routes, and contracts were signed with Boeing for the purchase of six of their 757 airliners, the largest single purchase in Icelandic aviation history