Why Keflavík Airport Is Investing 22 Billion ISK in a Massive New Terminal

Ujjwal Sukhwani
By Ujjwal SukhwaniPublished Feb 12, 2026 at 01:03 PM UTC, 2 min read

Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience.

Why Keflavík Airport Is Investing 22 Billion ISK in a Massive New Terminal

Keflavík International Airport will start a 22.3 billion ISK expansion in 2026 to link its terminals and improve passenger flow by 2031.

Key Takeaways

  • Invests 22.3 billion ISK into a new central connecting building.
  • Links the north and south terminal buildings for better flow.
  • Sets a construction start for 2026 with completion by 2031.
  • Boosts capacity to handle rising passenger numbers at KEF.

Keflavík International Airport (KEF) is growing fast. The airport operator, Isavia, announced a major plan. They will spend 22.3 billion ISK. This project focuses on the terminal. It will link two main buildings. A new central building is key. Work starts in early 2026. It should end by 2031. This is a big step.

A New Connection

The airport needs more space now. Passenger numbers are rising very fast. This plan helps people move better. The new building will be central. It connects the north and south. This makes transfers much easier. It also adds more room. There will be more shops soon. Security and check-in will improve too. According to reports, KEF is vital. It links Europe and North America.

Industry Impact

IATA says hubs must be efficient. This expansion supports that specific goal. It ensures Keflavík Airport stays very competitive. The project has several distinct phases. The first phase begins in 2026. Each step adds more total capacity. By 2031, the airport changes completely. It will handle more flights daily. Isavia aims for a better experience. Travelers often face long walks now.

Key Details

The new layout fixes this issue. It creates a much smoother flow. This is good for all airlines. They can turn around planes faster. Iceland’s tourism continues to grow yearly. The airport must keep up. This 22.3 billion ISK is needed. It secures Iceland’s aviation future. The project is a major milestone. It helps the whole region grow. Experts say this is necessary. The terminal space will increase greatly.

Future Growth

Better flow means fewer delays. This helps the airport stay on time. Modern airports need smart designs. This central building provides that design. It links the old and new. It creates a unified terminal space. Staff will work more efficiently too. The project creates many local jobs. It boosts the economy of Iceland. Everyone benefits from a better airport. The 2031 goal is very clear. KEF will be a world-class hub.

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Ujjwal Sukhwani

Written by Ujjwal Sukhwani

Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.

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