Aviation History
Iceland's aviation history began with a short-lived 1919 sightseeing airline, but sustained development started in 1937 with the carrier that became Flugfélag Íslands, followed in 1944 by Loftleiðir, later famous for pioneering low-fare transatlantic travel. Iceland's mid-Atlantic location made it a strategic refueling stop, reinforced by Keflavík Airport, built by Allied forces during World War II and later Iceland's main international gateway. Financial pressures during the 1970s energy crisis pushed Flugfélag Íslands and Loftleiðir to merge, forming Icelandair by 1979. Since then Icelandair has run a transatlantic hub-and-spoke network through Keflavík, weathering the 2008 financial crisis and the 2010 Eyjafjallajökull eruption, while newer low-cost entrants such as WOW air and PLAY have tried to revive Loftleiðir's cheap-fares model with mixed success.
Flugfélag Íslands, Iceland's first airline, flew an Avro 504K biplane on sightseeing flights starting in September 1919 but folded within about a year.
Flugfélag Akureyrar was founded with a single seaplane; it relocated to Reykjavík in 1940 and was renamed Flugfélag Íslands, a direct ancestor of modern Icelandair.
Three Icelandic pilots who had trained in Canada founded Loftleiðir, which would later become known for pioneering low-fare transatlantic service.
Flugfélag Íslands operated one of Iceland's first scheduled postwar flights to Europe, from Reykjavík to Scotland, opening regular international connections.
Keflavík Airport originated as a base constructed by Allied (later US) forces during World War II and eventually became Iceland's principal international gateway.
Flugfélag Íslands and Loftleiðir, which had merged under the holding company Flugleiðir earlier in the 1970s amid the energy crisis, formally combined operations under the Icelandair name.
The eruption of the Eyjafjallajökull volcano closed large parts of European airspace for days, briefly forcing Icelandair to operate from Glasgow instead of Keflavík.
Budget carrier WOW air, which had expanded rapidly on low-fare transatlantic routes through Keflavík, collapsed financially and shut down.
A new low-cost carrier, PLAY, launched transatlantic service through Keflavík, continuing Iceland's long-running low-fare stopover model.
Icelandair · Loftleiðir (historical) · WOW air (historical) · PLAY · Air Iceland Connect (historical)
General public/encyclopedic sources (Wikipedia, Icelandair corporate history); recent items such as PLAY's route network and Icelandair's headquarters details are more time-sensitive and should be reverified.
Aviation Firsts
Reykjavik Airport — Reykjavik (1919): Opened 3 September 1919, when an Avro 504 ('the first aeroplane in Iceland') flew from Vatnsmyri, the field later used as the airport site. Built out into a proper airport by the British Army during WWII (RAF Reykjavik); handed to the Icelandic government in 1946; operated by Isavia today. No competing claim for an older Icelandic airport was found. Politically contested as a *site* (a 2001 referendum on relocation was close, 49.3% for moving vs 48.1% for keeping; runway 06/24 closed 2019; no final relocation decision as of 2025) but not contested as Iceland's oldest airport. · Wikipedia ↗
Flugfelag Islands (1919-1920) (1919): Founded 22 March 1919 in Reykjavik; bought a single Avro 504K; flew Iceland's first-ever flight on 3 September 1919 (pilot Cecil Faber); ran air shows and sightseeing flights the following summer; closed in 1920 due to poor landing conditions and finances. Described as operating 'the first domestically operated aircraft in Iceland.' No lineage to any later carrier, including the unrelated later company that reused the same name after 1940. · Wikipedia ↗
Icelandair (via Flugfelag Akureyrar) (1937): Flugfelag Akureyrar founded 1937 in Akureyri; flights began 1938; moved to Reykjavik and renamed Flugfelag Islands in March 1940 (reusing a name an unrelated 1919-1920 and 1928-1931/1932 venture had used earlier — Wikipedia's Icelandair article explicitly states those earlier companies were NOT predecessors of this 1937 lineage despite the shared name). Loftleidir, formed 1944, began scheduled international service in 1947; the two combined under holding company Flugleidir in 1973, merged into one airline in 1979, and were renamed Icelandair. Iceland's flag carrier, operating today. · FI ↗ · Wikipedia ↗
If 'first airline ever in Iceland' is the question, it is the 1919 Flugfelag Islands venture (defunct within a year, no lineage forward). If 'oldest airline with continuous corporate lineage to today's flag carrier' is the question, it is the 1937 Flugfelag Akureyrar lineage that became Icelandair — Wikipedia explicitly states the two ventures, despite sharing a name after 1940, are unrelated. A second short-lived 1928-1931/1932 venture also reused the name and is likewise unrelated to either; sources even disagree on whether it ended in 1931 or 1932, but since it has no lineage to today's carrier either way, it is noted here rather than given a separate claim entry.
No documented foreign entrant found. Checked Airport Associates (started 1997 after regulatory changes ended Icelandair Ground Services' monopoly at Keflavík) — ownership/nationality could not be confirmed from available sources. Checked Universal Aviation at Keflavík — it is a general/business aviation FBO operator (~30 years' presence), which falls under this project's VIP/business-jet exclusion rule and lacks a confirmed entry date. No confirmed foreign mainline ground handler (Swissport, dnata, Menzies, Çelebi, Havaş, WFS, Aviapartner) was found to have entered Iceland.