The Boeing 757 flew very low over the Westman Islands, off Iceland's southern coast, on Saturday. Video footage shows it flying about 100 meters above the rooftops.
The Icelandair plane was en route to Iceland from Frankfurt. Terrified islanders feared it was about to crash, Morgunbladid reported.
The airline's chief pilot, Linda Gunnarsdottir, told the newspaper that the pilot was on his last day of work before retirement and chose to fly past his hometown. She described it as a "very serious" incident and said it has been reported to the police and the Icelandic Civil Aviation Authority.
