There is a discussion on the 'other forum', regarding Icelandair at BHX after 15 Jan 2018. OltonPete is reporting that all flights from BHX after that date utilise FlyBe via Glasgow. Checking the Icelandair website, that is what is currently showing.
I have had some concerns regarding this service throughout this year (going by CAA statistics). Following it's launch, initial growth seemed good and I was hoping to see further growth following the loss of AAL and UAL. However, figures appear variable, with several months in 2017 in decline over 2016.
A quick review for 2017 v 2016 and 2017 v 2015 (corresponding months) show the following (note Flybe may still have been operating for the first few months of 2015) -
Jan 16 2010 Jan 17 3101 +54%
Feb 16 4968 Feb 17 5776 +16%
Mar 16 5061 Mar 17 4651 -8%
Apr 16 3161 Apr 17 4478 +42%
May 16 2668 May 17 2446 -8%
Jun 16 3172 Jun 17 2731 -14%
Jul 16 3653 Jul 17 2538 -31%
Aug 16 3782 Aug 17 2622 -30%
Sep 16 2989 Sep 17 2763 -8%
Jan 15 2052 Jan 17 2010 -2%
Feb 15 3791 Feb 17 5776 +52%
Mar 15 3899 Mar 17 4651 +19%
Apr 15 1806 Apr 17 4478 +248%
May 15 1233 May 17 2446 +198%
Jun 15 1961 Jun 17 2731 +139%
Jul 15 2351 Jul 17 2538 +8%
Aug 15 2585 Aug 17 2662 +3%
Sep 15 1947 Sep 17 2763 +42%
Fares appear to be very high and although GLA appears to have more flights per week than BHX, there seems to be no Flybe links from BHX into those extra GLA flights.
Hopefully, this is just a glitch in the booking system.
Kevin