Iceland’s Keflavik Airport to Undergo $1 Billion Renovation

Jan 15, 2018

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

In case you haven’t heard, tourism in Iceland has been booming in recent years. In fact, according to Bloomberg, traffic at Reykjavik’s Keflavik Airport (KEF) has grown more than five-fold over the past nine years. This year, the airport will see a predicted 10 million passengers pass through its terminals. But since the boom in tourism KEF has remained relatively unchanged — until now.

During the next seven to eight years, the airport expects to invest about $1 billion to help it accommodate more airlines, as the airport is the main gateway to the country — and the rest of Europe — for many travelers. It then hopes to see the investment and ability to accommodate more airlines as being able to offer more nonstop routes to the US and throughout Europe. As part of this investment, the potential to physically grow the airport is there, as it’s surrounded by open lava fields. The airport was originally built by the US military during World War II.

In order to complete the proposed $1 billion in renovations, it’ll require monetary assistance from foreign investors. The airport renovation would be a move that falls into the growing infrastructure push throughout the country. The newly appointed government expects investments to increase by 21% during the next five years — part of which would include KEF. The city of Reykjavik almost doubled its investments in 2017.

With the expansion of low-cost carrier WOW Air by connecting smaller US cities to Iceland, as well as Icelandair continuing its US expansion, there are more options than ever. Most recently, Icelandair announced that it was adding three US cities to its route network, including giving Kansas City (MCI) its first-ever nonstop transatlantic route. Plus, several legacy US carriers now offer — or are planning to offer — nonstop flights from the US to KEF. Its position also gives KEF the benefit of acting as a great stopover option for Europe-bound travelers.

As the tourism boom in Iceland continues, the ability for the country to be able to accommodate the influx of tourists becomes even more vital. Given that Keflavik Airport (KEF) is a major gateway to the country and Europe as a whole, this investment is needed to ensure that the airport can handle even more tourists flocking to the country.

Featured image by ullstein bild via Getty Images.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 bonus miles after you spend $3,000 in purchases on your new Card in your first 3 months. Offer ends 8/3/2022.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
17.24%-26.24% Variable
Annual Fee
Balance Transfer Fee
Recommended Credit
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.