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Air Iceland Connect

Air Iceland Connect was an Icelandic regional airline brand serving domestic Icelandic routes and selected destinations in Greenland and the Faroe Islands.

Last updated August 31, 2026

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Overview

Air Iceland Connect was the regional airline brand historically associated with Flugfélag Íslands and owned by Icelandair Group. Its roots reach back to the establishment of Flugfélag Akureyrar in 1937, which adopted the name Flugfélag Íslands in 1940. The enterprise became part of the wider lineage that later produced Flugleiðir, known internationally as Icelandair, although domestic and international activities were distinguished operationally and commercially for much of the following decades. The modern Air Iceland business emerged from the consolidation of domestic operations and the northern Icelandic carrier Flugfélag Norðurlands. Flugfélag Norðurlands was incorporated in 1995 after the activities associated with Norðurflug, founded by Tryggvi Helgason, and merged with Flugleiðir’s domestic operation in 1997. The combined operation reused the Flugfélag Íslands name and was marketed in English as Air Iceland. It provided scheduled service between Reykjavík and communities throughout Iceland, including Akureyri, Egilsstaðir, Höfn, Ísafjörður and Vestmannaeyjar, while also connecting smaller regional points such as Grímsey, Vopnafjörður and Þórshöfn. The carrier’s role was shaped by Iceland’s geography. It operated aircraft suited to short sectors, variable weather and airports with relatively short runways, initially using Fokker 50s, Fairchild Swearingen Metroliners and de Havilland Canada Twin Otters. ATR 42 aircraft were also operated on a wet-lease basis from Íslandsflug between 2000 and 2003. The Twin Otters and their associated services were transferred to Norlandair in 2008, while Dash 8 aircraft progressively replaced older types. Two Dash 8-100s entered service in 2006, Dash 8-200s followed in 2012, and three Dash 8-400s replaced the Fokker 50 fleet during 2015 and 2016. Air Iceland also developed a regional international network. It maintained or inherited links to Greenland, including Kulusuk and Narsarsuaq, and later added direct Keflavík services to Nuuk in 2007 and Ilulissat in 2008. Several Greenland services became year-round in 2010, while Kangerlussuaq was served seasonally in 2016 and 2017. The airline cooperated with Atlantic Airways on Faroe Islands services and with Norlandair on selected small-community routes. It began services from Keflavík to Aberdeen in 2016 and Belfast in 2017, but these routes were withdrawn in 2018 when the company refocused on regional destinations. In May 2017 the business adopted the Air Iceland Connect name. The rebranding was intended to distinguish the regional operation from Icelandair while emphasizing its links between Icelandic and international destinations. The change also prompted criticism from some observers concerned about replacing the Icelandic Flugfélag Íslands name in public-facing branding. In February 2018 the airline announced a more focused regional strategy, ending the Aberdeen and Belfast services and selling one Dash 8-400. The separate consumer brand ended in March 2021. Icelandair Group announced that Air Iceland Connect’s sales activities would be combined with Icelandair and that domestic and international services would be presented under the Icelandair brand from 16 March 2021. The underlying company and its air operator’s certificate continued to support domestic operations, but the Air Iceland Connect identity ceased to be used as a separate airline brand. Its Dash 8 aircraft subsequently operated under the Icelandair name, with another Dash 8-400 added in 2023.

History

The airline’s institutional history begins with Flugfélag Akureyrar, established in Akureyri on 3 June 1937. It changed its name to Flugfélag Íslands on 13 March 1940. This was the third Icelandic airline to use that name; earlier companies with the same name had operated briefly in 1919–1920 and from 1928 to 1931. In 1973, Flugfélag Íslands merged with Loftleiðir to form Flugleiðir. The domestic operation was associated with the Flugleiðir name, while the international brand became Icelandair. A further stage of consolidation occurred in northern Iceland. Norðurflug, founded in Akureyri by Tryggvi Helgason, was incorporated in 1995 as Flugfélag Norðurlands. In 1997 it merged with Flugleiðir’s domestic activity, and the combined operation revived the Flugfélag Íslands name. In English it was marketed as Air Iceland. The carrier served Icelandic regional centers from Reykjavík Airport and maintained a network to selected Greenland and Faroe Islands destinations. During the late 1990s and early 2000s the fleet included Fokker 50 aircraft, Fairchild Swearingen Metroliners and de Havilland Canada DHC-6 Twin Otters. ATR 42 aircraft were wet-leased from Íslandsflug between 2000 and 2003. By 2001 the airline had four Fokker 50s, and its network included Akureyri, Egilsstaðir, Höfn, Ísafjörður, Vestmannaeyjar, Vágar, Kulusuk and Narsarsuaq from Reykjavík, together with several northern Icelandic routes from Akureyri. The airline introduced Dash 8-100 aircraft in 2006, replacing Metroliners. Its two Twin Otters were sold to Norlandair in 2008, along with the associated routes. International regional flying expanded in Greenland: Keflavík–Nuuk began in 2007 and Keflavík–Ilulissat in 2008. Kulusuk, Nuuk and Constable Point became year-round destinations in 2010, although the Constable Point route was later acquired by Norlandair. Kangerlussuaq was served seasonally in 2016 and 2017. The carrier also maintained cooperation with Atlantic Airways on Faroe Islands services. Fleet renewal continued with the acquisition of two Dash 8-200 aircraft in late 2011 for delivery in early 2012. The remaining Dash 8-100 aircraft were then removed from the fleet. Between 2015 and 2016, three Dash 8-400s replaced five Fokker 50s. The newer aircraft enabled services to Aberdeen, launched in March 2016, and Belfast, launched in June 2017, both from Keflavík International Airport. In 2017 the airline changed its English-facing brand from Air Iceland to Air Iceland Connect. The stated purpose was to distinguish the business from Icelandair and communicate its role linking Iceland with regional international destinations. The renaming drew criticism because it reduced the visibility of the Icelandic-language Flugfélag Íslands identity. A strategy review in 2018 returned the operation to a narrower regional emphasis, ending the Aberdeen and Belfast routes by 14 May and disposing of one Dash 8-400. On 9 March 2021, Icelandair Group announced that the separate Air Iceland Connect sales and brand structure would be merged into Icelandair. From 16 March, the flights were marketed under the Icelandair name. Air Iceland Connect’s company and air operator’s certificate continued to support the flights legally and operationally, but the independent consumer brand was discontinued. The Dash 8 fleet continued in Icelandair service, and a Dash 8-400 was added in 2023, restoring the type to three aircraft.

  • 2021

    Brand integrated into Icelandair

    [1]

    Sales and customer-facing operations moved under Icelandair, ending Air Iceland Connect as a separate consumer brand.

  • 2017

    Air Iceland Connect brand launched

    [1]

    The Air Iceland English-language brand was renamed Air Iceland Connect.

  • 2015

    Dash 8-400 fleet renewal begins

    [1]

    Dash 8-400 aircraft began replacing the carrier’s Fokker 50 fleet.

  • 2007

    Nuuk service launched

    [1]

    The airline expanded its Greenland network with direct Keflavík–Nuuk flights.

  • 2006

    Dash 8-100 introduced

    [1]

    Two Dash 8-100 aircraft entered the fleet, replacing Fairchild Metroliner aircraft.

  • 1997

    Domestic operations consolidated

    [1]

    Flugfélag Norðurlands merged with Flugleiðir’s domestic operations and revived the Flugfélag Íslands identity, marketed in English as Air Iceland.

  • 1995

    Flugfélag Norðurlands incorporated

    [1]

    The northern Icelandic operation associated with Norðurflug was incorporated as Flugfélag Norðurlands.

  • 1973

    Merger into Flugleiðir

    [1]

    Flugfélag Íslands and Loftleiðir merged to create Flugleiðir, the company internationally associated with Icelandair.

  • 1940

    Name changed to Flugfélag Íslands

    [1]

    The airline adopted the Flugfélag Íslands name, which remained central to its later corporate and operating identity.

  • 1937

    Flugfélag Akureyrar established

    [1]

    The corporate lineage of the later Air Iceland operation began with the establishment of Flugfélag Akureyrar in Akureyri.

Products and positioning

A geographically focused Icelandic regional carrier designed to connect Reykjavík and Akureyri with smaller Icelandic communities and nearby North Atlantic destinations. The operation emphasized turboprop aircraft, short sectors and access to airports that were less suitable for larger jet aircraft.

  • Passenger airline service · 1997

    Domestic regional passenger services

    The core offering connected Reykjavík Airport with Icelandic regional centers and smaller communities. Notable destinations included Akureyri, Egilsstaðir, Höfn, Ísafjörður and Vestmannaeyjar, with additional services to places such as Grímsey, Vopnafjörður and Þórshöfn. The operation relied on turboprops suited to short domestic sectors and challenging regional infrastructure.

  • International regional passenger service

    Greenland regional services

    Air Iceland and its predecessor operations served Greenland destinations including Kulusuk and Narsarsuaq, later adding Nuuk and Ilulissat from Keflavík. Some routes became year-round, while Kangerlussuaq was served seasonally. The network supported connectivity between Iceland and Greenland using aircraft capable of serving relatively short runways.

  • Aircraft platform · 2006

    Dash 8 regional fleet

    Dash 8-100, Dash 8-200 and Dash 8-400 aircraft formed the principal modern fleet. The type replaced Metroliners and later Fokker 50s, offering a balance of capacity, runway performance and operating economics for Icelandic domestic and North Atlantic regional flying.

Brand decisions

  • 2021

    Integration with IcelandairStrategy

    Background

    Icelandair Group sought to unify domestic and international customer-facing brands and sales operations.

    Action taken

    From 16 March 2021, Air Iceland Connect sales operations and branding were combined with Icelandair.

    Aftermath

    The Air Iceland Connect brand disappeared from the market, while the underlying operator continued domestic flights under its own air operator’s certificate and legal responsibility.

  • 2018

    Return to a narrower regional networkStrategy

    Background

    The company reviewed its network after adding services from Keflavík to Aberdeen and Belfast.

    Action taken

    It discontinued Aberdeen and Belfast flights by 14 May 2018 and sold one Dash 8-400.

    Aftermath

    The airline concentrated on Icelandic domestic and selected North Atlantic regional routes.

  • 2017

    Rebrand as Air Iceland ConnectStrategy

    Background

    The regional airline wanted to distinguish its identity from Icelandair while presenting itself as a connector between Icelandic communities and international regional destinations.

    Action taken

    Flugfélag Íslands changed its English-facing brand from Air Iceland to Air Iceland Connect.

    Aftermath

    The new name created clearer commercial separation from Icelandair but also prompted complaints that the Icelandic-language identity had been weakened.

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