Air Iceland Connect can trace its history to 1937. On 3 June that year,
Flugfélag Akureyrar was established; the airline changed its name to Flugfélag Íslands on 13 March 1940, the third airline to bear this name. The first Flugfélag Íslands was founded on 22 March 1919 and dissolved the following year. A second airline of the same name was founded on 1 May 1928 and operated until 1931. In 2001, a fourth Fokker 50 was added to the fleet. At the time, its network consisted of flights from
Reykjavík Airport to
Akueyri,
Egilsstaðir,
Höfn,
Ísafjörður,
Vestmanneyjar,
Vágar,
Kulusuk and
Narsarsuaq as well as routes from
Akureyri Airport to
Grímsey,
Vopnafjörður and
Þórshöfn. The airline previously operated
ATR 42 aircraft, wet leased from
Íslandsflug, from 2000 to 2003. In 2004, Air Iceland ceased operating their own flights to Vágar in the Faroe Islands but continued to sell seats in cooperation with Atlantic Airways.
Fleet renewal and international network In 2006, Flugfélag Íslands introduced two
Dash 8-100 aircraft into its fleet, replacing three
Metroliner aircraft which were sold the same year. In 2006, the fleet consisted of six Fokker 50, two Dash 8-100 and two
De Havilland Canada DHC-6 Twin Otter aircraft. In 2008, the airline sold off its two
De Havilland Canada DHC-6 Twin Otter aircraft to
Norlandair, who also acquired the associated routes. Air Iceland has served
Kulusuk,
Narsarsuaq and
Constable Point since its establishment (and earlier as Flugleiðir). In 2007, Air Iceland expanded its
Greenland network by introducing direct flights from
Keflavík to
Nuuk in Greenland, followed by
Ilulissat the following year enabled by their newly acquired Dash 8 aircraft. In 2010, routes to Kulusuk, Nuuk and Constable Point became served year-round.
Norlandair later acquired the route to
Constable Point (Nerlerit Inaat). In 2016 and 2017, Air Iceland operated a route to
Kangerlussuaq seasonally over the summer. In late 2011, Flugfélag Íslands acquired two
Dash 8-200 aircraft for delivery in early 2012. Upon delivery of these aircraft, the airline sold its remaining Dash 8–100 series aircraft (the other was written off). A fleet of three
Dash 8-400 aircraft replaced the airline's five
Fokker 50 aircraft in 2015–16.
Increased international service Services using the new aircraft included routes to
Aberdeen which started in March 2016, and
Belfast which began in June 2017, both flown out of
Keflavík International Airport.In May 2017, Flugfélag Íslands announced it had rebranded as
Air Iceland Connect. Árni Gunnarsson, managing director of Air Iceland Connect, stated that the name change would help distinguish themselves from
Icelandair and signify the airline's connection to Icelandic and international destinations. Dropping the Icelandic name resulted in complaints about the attack on the Icelandic language. In February 2018, Air Iceland Connect announced a strategy change by focusing on regional destinations. Therefore, flights to the Aberdeen and Belfast had been cut by 14 May 2018. In conjunction, one Dash 8-400 was sold. In 2023, a
De Havilland Canada Dash 8-400 aircraft was added to the fleet, bringing the total number of Dash 8-400 aircraft to three again.
Discontinuation of brand On 9 March 2021,
Icelandair Group announced that Air Iceland Connect is to merge its sales operations with
Icelandair by uniting domestic and international brands from 16 March 2021 and continuing the current flight operations under the Icelandair brand. The company Air Iceland Connect continues to operate domestic flights under its own
Air Operator's Certificate and legal responsibility but using the Icelandair brand. == Destinations ==