My family has tickets to fly in late July. We have been watching the reports and I am starting to get concerned. Does anyone know if there are alternate plans for Icelandair other than to cancel and wait? Do they partner with other airlines? I see they are refunding if you flight gets cancelled but that won't help us get new tickets on short notice will it? We just want to go to Paris:)
Not the summer, but we are booked with Icelandair SEA-KEF-AMS in October.
You can look at Keflavik airport's website to get an idea of what is happening to current flights. So far, I have seen them re-routed into Akureyi airport (~4 hours away), or through Glasgow. This website also describes the rights of passengers affected by the ash, including "a refund or alternative flight to your destination" if your flight is significantly delayed or cancelled.
Also, I know that the eruptions could continue for months or longer, it still is a few months until July, so you should probably wait a bit longer to assume you will be affected.