Air Iceland

Air Iceland, operating under the IATA code NY and ICAO code FXI, is a regional airline based in Iceland that has played a fundamental role in connecting the country’s diverse communities since its inception. The airline was established in 1997 through the merger of two historic Icelandic carriers: Flugfélag Íslands (founded in 1937) and Air Ísland (founded in 1973). This consolidation was orchestrated by the Icelandair Group, which remains the sole owner of Air Iceland to this day. As a wholly owned subsidiary of the Icelandair Group, the airline benefits from strategic synergies with its parent company while maintaining a distinct operational identity focused on regional services. In 2019, the carrier rebranded as Air Iceland Connect, a name intended to better reflect its mission of linking communities within Iceland and to nearby international destinations, though the legal entity remained unchanged.

The fleet of Air Iceland is purpose-built for short-haul regional operations, consisting exclusively of de Havilland Canada Dash 8 turboprop aircraft. Over the years, the airline has operated various Dash 8 models, including the Dash 8-100, Dash 8-200, and the larger Dash 8 Q400. As of the mid-2020s, the active fleet comprises a mix of Dash 8-200 and Dash 8 Q400 aircraft, with the Q400 serving as the backbone for higher-demand services due to its greater passenger capacity and speed. These aircraft are ideally suited to Iceland’s often challenging weather conditions and short runway infrastructure. Air Iceland has been a pioneer in the use of the Dash 8 Q400 in Iceland, becoming the first operator of the type in the country. The fleet is maintained to high standards, with an average age that reflects a commitment to reliability and passenger comfort. The airline does not operate jet aircraft, as its route network is predominantly composed of thin, domestic, and short international regional links.

The primary hub for Air Iceland is Reykjavík Airport (RKV), located just minutes from downtown Reykjavík. This airport serves as the central nexus for its extensive domestic network, connecting the capital with towns and villages across Iceland. In addition, the airline also operates a secondary focus from Akureyri Airport (AEY) in northern Iceland, which acts as a regional gateway for the north and east of the country. While Reykjavík Airport is the main base, Air Iceland also maintains a presence at Keflavik International Airport (KEF) for certain operations, particularly those that require coordination with Icelandair’s international flight schedules. The airline’s operational model is that of a regional carrier, offering scheduled passenger flights predominantly within Iceland, as well as a limited number of seasonal and charter services to neighbouring territories such as Greenland and the Faroe Islands. It also provides cargo services on select flights, utilising the belly hold capacity of its Dash 8 aircraft to transport freight, including mail and time-sensitive goods, to remote communities.

As a regional airline, Air Iceland is not a member of any global airline alliance, but it maintains a close commercial partnership with its parent, Icelandair. This includes codeshare agreements that allow seamless connections between Icelandair’s international jet network and Air Iceland’s turboprop services, particularly at Keflavik Airport. Notable milestones in Air Iceland’s history include its pioneering introduction of the Dash 8 Q400 to Iceland in the early 2000s, which significantly improved travel times and reliability on domestic sectors. The airline has also been recognised for its operational safety record and its role in sustaining year-round connectivity to remote Icelandic communities, which are often cut off by road during winter. In 2018, the carrier celebrated carrying over one million passengers in a single year for the first time, a testament to its importance in Iceland’s transportation infrastructure. Through its steady evolution from a merger of two legacy carriers to a modern regional operator, Air Iceland remains an indispensable link in the country’s aviation network, delivering essential services with efficiency and local knowledge.