Because so much of Iceland's central region is uninhabited, domestic air transport has been well developed to link the coastal towns. It isn't particularly expensive—round-trip fares for open tickets range from ISK 15,000 to ISK 20,000—but discounts are available, particularly for those under 25. The longest domestic flight takes just over an hour.
Air Iceland. Air Iceland is the country’s main domestic airline and has been operating since 1937. With its fleet of Fokker F50 and Dash DHC-8 planes, all sporting the image of Odin’s mighty, eight-legged flying horse, this airline currently links the capital city with three other major Icelandic towns: Akureyri, Egilsstaðir, and Ísafjörður, as well as providing regular flights to Tórshavn in the Faroe Islands and five destinations in Greenland: Nuuk, Ilulissat, Narsarsuaq, Kulasuuk, and Ittoqqortoormiit. In addition to scheduled flights, the company also offers a range of tempting, good-value day tours. Reykjavík Airport, Reykjavík, Capital Region, 101. 570–3000; www.airiceland.is.
Eagle Air. This family-run airline operates services to some of Iceland's smaller towns, with scheduled flights from Reykjavík to Höfn, Westman Islands, Bíldudalur, Gjögur, and Húsavík. It also operates chartered services to Greenland, the Faroe Islands, and select destinations in Europe, as well as providing a number of thrilling adventure tours. Reykjavík Airport, Reykjavík, 101. 562–4200; www.eagleair.is.
Icelandair. This is Iceland's main airline, and considered by many to be a national treasure. It's cultural identity is so strong that a trip on Icelandair, especially on your first visit to Iceland, will feel like an integral part of your Iceland experience. The airline, the proud owner of a new, beautifully painted, northern lights–themed plane named the Aurora Hekla, offers regular flights to 40 destinations in Europe and North America. Because Iceland is strategically placed between the continents, the company also offers a "stopover" deal that gives transatlantic passengers flying between destinations in Europe and North America the option of stopping over in Iceland for up to seven days for no additional airfare. Service is offered in three classes: economy, economy comfort, and saga/business. Reykjavík Airport, Reykjavík, IS-101. 354/505–0100; 800/223–5500; www.icelandair.com.
WOW air. Launched in 2012, this relatively new Icelandic airline specializes in budget short-haul flights to destinations in Europe and the United States. Reykjavík, Capital Region. 590–3000; www.wowair.com.
Virtually all international flights originate from and arrive at Keflavík International Airport, 50 km (31 miles) south of Reykjavík. Reykjavík Airport is mostly a domestic airport, although some flights to Greenland, Vestmannaeyjar, and the Faroe Islands leave from there.
Keflavík International Airport. This award-winning international airport is the main gateway to Iceland and receives more than 2 million passengers every year. It was originally built as a military facility by the United States during World War II, providing a landing strip for large aircraft and also a stopover service for transatlantic military flights. Its development since is historically linked with NATO and it now boasts runways long enough to support both the Antonov An-225 and the NASA space shuttle. It wasn't until 1987 that the dedicated civilian section was opened. The airport is beautifully designed, easy to navigate, and provides duty-free shopping for both outgoing and incoming passengers. Luggage carts are still complimentary and the airport is well serviced by taxis and express coaches, providing transport to the capital. Car rentals are also available. Keflavík International Airport, Reykjanesbær, Southern Peninsula, 235. 425–6000; www.kefairport.is.
Reykjavík Airport. Conveniently located in central Reykjavík, this charming little airport—built by the British military during World War II—provides services for domestic flights as well as short-haul flights to Greenland and the Faroe Islands. Landing at this airport is quite an experience, made memorable by the impressive views of both the colorful rooftops of the city houses and the surrounding Faxaflói Bay. Reykjavík Airport, Reykjavík, Capital Region, IS-101. 424–4000; www.isavia.is.