East Wing formally opened
The new East Wing is now formally open at Keflavík Airport. Daði Már Kristófersson, Minister of Finance and Economic Affairs, officially opened the new wing, which expands the terminal by 30% and significantly improves facilities at the airport.
The new East Wing is now formally open at Keflavík Airport. Daði Már Kristófersson, Minister of Finance and Economic Affairs, officially opened the new wing, which expands the terminal by 30% and significantly improves facilities at the airport.
“The East Wing, which we officially open today, is not just another step in the development of the airport, but a tangible confirmation of the future vision of making it an international hub between Europe and North America,” said Daði Már Kristófersson, Minister of Finance and Economic Affairs, during the formal opening of the new East Wing at Keflavík Airport. He stated that international relations and transport are the foundation of economic growth and prosperity in Iceland, and that the country therefore has a strong interest in ensuring smooth and robust transport to and from the island.
The East Wing, a new extension to the Keflavík Airport terminal, expands the terminal by 30% and greatly enhances airport facilities. With this expansion, Keflavík Airport can better support the growth of airlines and other clients while also improving the passenger experience.
A project that strengthens Iceland's competitiveness
The East Wing is the first major step in Keflavík Airport’s development plan, aiming to strengthen its role as a hub, increase connections, and thus enhance Iceland’s competitiveness.
“The development of recent years has been largely aimed at increasing the airport’s capacity, as demand from our airlines has been significant in that regard. This has resulted in a considerable increase in flight connections, which is very important for Icelandic society.”
Sveinbjörn added: “These projects are important – not only to facilitate continued growth but also to secure the progress already made in the number of arriving passengers, connecting passengers, and therefore flight connections, which directly contributes to economic growth.”
Kristján Þór Júlíusson, Chairman of the Board of Isavia, also emphasised continued development in his speech, and said that prioritization of future construction projects is now underway.
“This is a changed prioritization strategy that directly supports the focus of having capacity in place by 2028 to accommodate the expected future growth of airlines choosing Keflavík Airport as their hub.”
Continued development calls for and increase in equity
Kristján Þór stated that although Isavia’s operations are running well, the scale of the necessary construction projects in the coming years is such that the company’s balance sheet will not support the financial cost of those projects. “It is unavoidable to strengthen the company with increased equity capital.”
Sveinbjörn agreed, adding: “It is important to maintain an open dialogue with the company's owner representative, the Ministry of Finance and Economic Affairs, regarding what funding options are available for future projects—partially through increased equity capital or participation from an international minority investor. I have previously emphasized how valuable it would be for Keflavík Airport to attract investors who specialize in funding international airport development, due to the expertise that comes with such capital. This kind of arrangement would always strengthen our competitive position relative to foreign airports.”
About the East Wing
Below are the key details about the East Wing and its construction.
MILESTONES AND BENEFITS
2021 : Minister of Finance and Economic Affairs commenced construction with a ceremonial groundbreaking on June 1.
2023 : A new, more spacious arrivals hall with a new baggage claim area at ground level and baggage handling system in the basement was taken into use in August. Greatly improved facilities for baggage reception and more efficient baggage delivery.
2024 : A new duty-free zone in the arrivals area opened in March. A new dining area in the departures zone with expanded restaurant options opened in November.
2025 : ORAT testing began in February, and the formal opening took place on March 20. Four new boarding bridges direct to aircraft and two new gates for remote stands, improving the guest experience at the airport. A new aircraft apron along with boarding bridges improves service area for aircraft. Spacious waiting area for departures.
RESPONSIBLE CONSTRUCTION
- Total cost is estimated at ISK 29.6 billion, in line with the original budget framework, adjusted for inflation.
- The project schedule has largely been maintained despite challenges from the pandemic and supply chain disruptions due to the war in Ukraine.
- The East Wing was built in accordance with Isavia’s sustainability policy and has received BREEAM certification. This minimizes environmental impact and contributes to lower operational costs over the building’s lifecycle
KEY DIMENSIONS
25,000 m² in floor area, representing about a 30% expansion of the terminal. For comparison, the concert hall Harpa is just under 30,000 m², according to the property registry.
31 m in height; for comparison, the towers of Akureyrarkirkja are 26 m tall.
66 m wide, similar to a football field, and 124.5 m long—about the same as Bankastræti in Reykjavík.
22,600 m² apron with aircraft fuel service, equivalent to more than three football fields.
From the opening
Below you can see photos from the opening ceremony.
