Icelandair Group, headquartered in Reykjavík, is Iceland’s flagship airline and a vital part of the country’s economy and tourism industry. With its unique transatlantic hub model, Icelandair has connected North America and Europe through Iceland for decades. As of 2025, Icelandair continues to be a cornerstone of Iceland’s transportation and tourism sectors.
History and Milestones
Icelandair traces its roots to 1937, making it one of Iceland’s oldest and most iconic companies. Over the years, it has played a crucial role in connecting Iceland with the world.
Key milestones include:
1937: Founded as Flugfélag Akureyrar, focusing on domestic flights.
1944: Renamed Icelandair and began international operations.
1962: Pioneered the “Stopover Program,” allowing transatlantic passengers to explore Iceland for no additional airfare.
2008: Played a pivotal role in maintaining Iceland’s connectivity during the financial crisis.
2020: Adapted to the pandemic by shifting focus to cargo operations and sustainable aviation initiatives.
Products and Services
Icelandair offers a range of services to passengers and businesses:
Passenger flights: Extensive connections across Europe and North America with a stopover in Iceland.
Cargo services: Transportation of goods to and from Iceland.
Tourism packages: Collaborations with local businesses to promote Iceland as a destination.
Business Model
Icelandair’s business model focuses on leveraging Iceland’s strategic location as a hub between continents:
Transatlantic connectivity: Operating a hub-and-spoke model through Keflavík International Airport.
Tourism partnerships: Supporting Iceland’s tourism industry by offering stopover incentives.
Sustainability: Transitioning to eco-friendly fuels and exploring carbon-neutral aviation solutions.
Impact on the Nordics and Global Markets
Icelandair has a profound impact on Iceland’s economy and global connectivity:
Tourism driver: A major enabler of Iceland’s booming tourism industry.
Economic contribution: A significant source of employment and foreign revenue.
Global reach: Strengthening Iceland’s position as a transatlantic hub.
Sustainability Initiatives
Icelandair is committed to reducing its environmental footprint:
Sustainable aviation fuels (SAFs): Collaborating with innovators to adopt greener fuels.
Fleet modernization: Transitioning to more fuel-efficient aircraft.
Carbon offset programs: Allowing passengers to offset their travel emissions.
Icelandair Group embodies Iceland’s connectivity and innovation, linking the island nation to the world. By championing sustainability and promoting Iceland’s unique culture and geography, Icelandair continues to soar as a symbol of Icelandic resilience and vision.
Icelandair Group embodies Iceland’s connectivity and innovation, linking the island nation to the world. By championing sustainability and promoting Iceland’s unique culture and geography, Icelandair continues to soar as a symbol of Icelandic resilience and vision.
Read more on Icelandair.com
