On May 6, 1989, the first of four new Boeing 737-400 aircraft arrived in Iceland. Among the passengers were Icelandair's top management, the Minister of Transport and Boeing representatives. The plane landed to a ceremonious reception, and Vigdís Finnbogadóttir, President of Iceland, named the jet Aldís. All new planes would receive names ending in -dís, which means fairy. The others were called Eydís, Védís and Heidís.
The new aircraft had seats for 156 passengers, with 18-78 in Saga Class. There was considerably more legroom than in the old Boeing 727s.