The carrier nonetheless expressed confidence in the safety of the aircraft.
"Based on the available information, Icelandair's thorough safety processes and the training of its crew, the company is confident in the safety of the Boeing 737 MAX 8 aircraft."
It said it would "follow any further developments closely, working with local, European, and American authorities regarding next steps."
A string of airlines have suspended flights with the US aircraft maker's 737 MAX planes and numerous countries have banned them from their airspace, after Sunday's Ethiopian Airlines crash killed all 157 people on board.
It was the second deadly accident involving the aircraft in just five months.
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