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Iceland’s second city airport gets terminal expansion; tourism boost needed

Analysis

Akureyri, Iceland's largest city outside the Reykjavik conurbation, has made strides as a tourist centre in recent years. So much so that the state airport operator Isavia has committed to infrastructure works including a terminal extension there, costing over EUR5 million.

But this comes at a time when Isavia is having to encourage airlines to operate there with huge discounts on landing fees.

It is something of a gamble for an operator which, like so many others, has been losing money heavily during the coronavirus pandemic, one that has resulted in the Icelandic government shutting down a country highly dependent on tourism to foreigners, opening it up, and closing it down again.

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