Iceland’s government will replace the percentage fare discount in the Loftbrú regional flight subsidy programme with a fixed króna amount from New Year 2027. The move was first reported by Austurfrétt, which cited multiple sources. The change affects travellers living outside the capital region who use Loftbrú discount codes when flying to or from Reykjavík Airport and other airports around the country.
Under the new arrangement, eligible residents will receive a 7,000 krónur (ISK) subsidy per flight leg, or 14,000 krónur for a return trip. This replaces the current system, which has provided a 40% discount on fares since the programme was established in 2020 to improve access to central services for regional residents.
The Ministry of Infrastructure (Innviðaráðuneytið) confirmed that no other changes are being made to Loftbrú. Users will still be able to apply the discount code to up to six flight legs, and access is limited to residents with legal domicile inside the programme’s defined areas. These residents will continue to benefit from lower fares for travel to and from the capital region.
About 62,000 residents outside the capital region are eligible for Loftbrú. In recent years, around or over 80,000 trips have been booked with the discount. Officials report that the service has been significant for connecting regional residents with central services.
The annual government budget for Loftbrú is about 600 million krónur, and authorities have said this funding level will remain unchanged despite the new system. In 2025, however, Loftbrú’s total costs exceeded its appropriation by around 140 million krónur, requiring extra funding. The fixed subsidy is intended to ensure costs stay within the budget framework and become more predictable. Average subsidies in recent years have ranged from 6,000 to just over 9,000 krónur.
Background
Sources
- Vegagerðin (Icelandic Road Administration) in Icelandic
- Stjórnarráð Íslands (Government of Iceland) in Icelandic
- Austurfrétt (first reported) in Icelandic
- Vísir in Icelandic
- mbl.is in Icelandic
- Eyjafréttir in Icelandic
- RÚV in Icelandic
