My husband and I just flew return from London Gatwick to Minneapolis, MN, USA via Reykjavik on Icelandair Economy Class, and I wanted to share our experience in case anyone is considering using their airline.
Pro's: Two pieces of checked luggage included in the price of the ticket, good entertainment system on all flights (individual touchscreen tvs with a good selection of movies and tv shows), and cheapest option at time of travel.
Con's: With the cheap price (which wasn't cheap really - still almost $900 per ticket) meant no onboard meals or snacks or drinks. You can still buy food, but the total travel time was over 12 hours so it was pretty sad that we didn't get anything complimentary but a small bottle of water. You have to buy headphones if you didn't bring your own. And they didn't offer blankets or pillows. All of the planes we were on were the 3 seats, aisle, three seats formation, which felt really small to be crossing the Atlantic on. There was a constant line down the only aisle for the bathroom. The ride was really bumpy and miserable both leaving and returning. Both our flights from London and Minneapolis were over an hour late departing. Luckily we didn't miss our connecting flights - the Reykjavik airport is small so it's easy to transfer quickly.
Overall, I was really not impressed with the airline. Two checked bags is great, but the bumpy, late departing flights and lack of any complimentary food or beverage services made for pretty poor show. I suppose all of the airlines will cut back like this eventually, but there are still better options out there.