IcelandAir doesn't know where my baggage is but I do!

On April 29th (Wednesday) I checked 3 bags (paid $80 each) and departed Seattle for Stockholm on IcelandAir.

On April 30th (Thursday) we had a brief layover at KEF and then arrived in Stockholm. Upon arrival, we were able to retrieve 2 of our bags but the third was missing. I immediately filed a claim at the lost baggage desk. I informed them that there was an AirTag on the bag and I could see the AirTag/bag were still at SeaTac airport. I gave all of this info to the customer service woman and she said they'd deliver my bag directly to me at my hotel in Stockholm.

My bag sat at SeaTac airport until last night (Friday) at 10:30 PM. I have a friend who is a dispatcher at that airport and he told me the flight was delayed but to watch my AirTag to see if it moved. The official departure (SEA-KEF) was at 10:26 PM. I watched my bag "disappear" from view at 10:24 PM. This gave me hope that my bag was on its way... and it was.

It is now Saturday, May 2nd and my bag is still "on vacation without me" at KEF. I literally saw it come back "online" as soon as the plane landed at KEF yesterday, May 1st (Saturday), and it has sat at the airport since then.

I have tried calling the baggage handling company and IcelandAir multiple times. I've given them the exact location of where my bag is and they keep saying they have no idea where it is but it'll be "here" in Stockholm soon and delivered directly to me at our hotel which is located by the airport.

It's now 6 AM on Saturday, May 2nd and I've had no communication whatsoever from IcelandAir with any additional info or excuses. We check out of this hotel today at noon and move to another hotel closer in to the city of Stockholm. So, I'll have to update my address info (for the new hotel) in case IcelandAir ever feels like bringing my bag to me. On May 5th, I leave Stockholm and road trip to see family in Gothenburg so I'll no longer be in Stockholm.

Like most people's bags, this one was important to me and contains gifts I brought for family I haven't seen in over 15 years. It also contains all of my clothes, shoes, makeup, hair stuff, etc. except for a pair of leggings and a sweater I brought in my carry on.

I'm seeing so much conflicted info online about what to do. I'm a single mom and this trip alone is a huge financial "stretch" for me. I can't really afford to be going out replacing clothes, gifts, shoes, makeup, etc. at Stockholm prices.

I've filed a claim with my travel insurance but who knows how long that will take. In the meantime, I've been rocking the same outfit for almost 3 days now.

If you have any ideas or advice for me, I am all ears/eyes. What would you do in this situation?

Thank you for reading this far. I appreciate any useful info you can provide.