The Icelandic government will change its Loftbrú airfare discount scheme for rural residents, setting a flat discount of 7,000 Icelandic króna (ISK) on each flight leg instead of the current 40% off, Vísir reported. The change will take effect from the next New Year.
Under the new arrangement, residents eligible for Loftbrú will receive 7,000 ISK off each leg of their journey, for a total of 14,000 ISK on a round trip. No other changes are being made to the scheme, which will continue to support rural residents whose legal domicile is within the defined Loftbrú areas, allowing up to six discounted flight legs per person each year.
Loftbrú was established in 2020 to improve access for people in rural parts of Iceland to central services. Around 62,000 residents are eligible to use the scheme, according to government figures. In recent years, roughly 80,000 or more trips have been purchased using the discount codes.
The government said the change was introduced after the project cost more than initially planned in recent years. Around 600 million ISK have been allocated annually for Loftbrú, but in 2025 the costs exceeded the budget by approximately 140 million ISK. Average subsidies in recent years have ranged from about 6,000 ISK to just over 9,000 ISK per trip.
Eyjólfur Ármannsson, whose remarks were published by the Government of Iceland, said, “The goal with the changes is to protect the positive effects of Loftbrú,” and “We want costs to be more predictable and within the budget framework.” (Quotes translated from Icelandic.)
The change is not without criticism. Bæjarins besta reported that the infrastructure minister’s proposed changes will likely increase travel costs for residents, as the fixed discount may not always match the value of a 40% reduction on higher-priced tickets.
Sources
Links: sudavik.is · snerpa.is
- Stjórnarráð Íslands (Government of Iceland) in Icelandic
- Vísir (first reported) in Icelandic
- Bæjarins besta in Icelandic
