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Thursday, 29 October 2026 Icelandic stories. Global audience.
Icelandic Life

East Iceland Municipalities to Protest Fixed ISK 7,000 Flight Subsidy

East Iceland's local authorities are preparing a protest against government changes to the Loftbrú flight subsidy. The new policy shifts from a 40% discount to a flat króna amount per flight leg.

View of rough volcanic terrain from an aircraft window and wingtip
File photo.

The Association of Municipalities in East Iceland, known locally as Samband sveitarfélaga á Austurlandi (SSA), the Icelandic word sveitarfélag means a municipality, has announced plans to protest government changes to the Loftbrú flight subsidy, as first reported by Austurfrétt.

From roughly New Year, the Loftbrú subsidy will shift from covering 40% of the total ticket price to paying a fixed 7,000 Icelandic krónur for each flight leg, according to RÚV and Vísir. The subsidy is intended to support domestic air travel, particularly benefiting residents in rural and remote areas.

The chairman of the SSA argued that the change from a percentage-based discount to a set króna amount would effectively reduce living standards for people in rural Iceland. He said this move amounts to a cut in people’s terms of living.

The SSA chairman also criticised the infrastructure minister, stating the minister’s public messaging is out of touch with the real conditions faced by rural residents. Calling the planned change unacceptable, he described it as “a wet rag in the face from the government,” in comments reported by RÚV. The statement was originally made in Icelandic.

Sources