Important expansion at Keflavík Airport

Bjarni Benediktsson, Minister of Finance and Economic Affairs, formally broke ground today for the new 20,000-square-metre addition to the Leif Eiríksson Air Terminal at Keflavík Airport.


Construction work on the building is starting, and it is estimated that it will be ready for use in 2024. The estimated total cost is ISK 20.8bn. The project is an important milestone in the development plan of the airport. Customer services will improve, and the airport’s capacity will increase.

An agreement has been reached with the contracting company Ístak for earthworks for the extension that will be built on the east side of the current air terminal. Before the ground was broken, Sveinbjörn Indriðason, CEO of Isavia, and Karl Andreassen, CEO of Ístak, signed a project agreement for the earthworks, which can now be initiated without delay.

“It is very enjoyable to see this project become a reality. Our decision this past winter to increase the share capital in Isavia sends a clear message that despite temporary circumstances during the present pandemic, we know that there is a bright future ahead. The increase in share capital facilitates important improvements at Keflavík Airport and further strengthens us as regards international competitiveness for the passengers who are looking forward to traveling again after the pandemic. At the same time, this excellent project is a welcome injection of funds into the Icelandic economy. Numerous new jobs will be created, not least in Suðurnes, and this superb area will now rise up again after these temporary doldrums during the pandemic,”

Bjarni BenediktssonMinister of Finance.
Sveinbjörn Indriðason and Bjarni Benediktsson
Sveinbjörn Indriðason and Bjarni Benediktsson

Sveinbjörn Indriðason, CEO of Isavia, and the company’s employees celebrated this milestone at Keflavík Airport. “An air terminal is a complicated infrastructure. A number of aspects must be coordinated to ensure that everything works together,” says Sveinbjörn. “Adding this new east building will revolutionise baggage handling and add considerable retail space on the upper floor as well as enlarge the waiting area. In addition, four new gates with passenger boarding bridges will be added, which is an enormous step toward improving services to aircraft operators and passengers. The increase in share capital was a vital aspect in enabling us to extend the scope of previously planned construction and ensured that we fast-track a number of project components. This will be of great advantage in the future.”