East Iceland Towns Fight Subsidy Change Raising Flight Costs 30%

East Iceland municipalities are preparing a joint challenge to a change replacing Loftbrú's 40% flight discount with a fixed 7,000 ISK subsidy per flight leg from January 1.

• 1Loftbrú's 40% discount will be replaced by a fixed 7,000 ISK subsidy per eligible flight leg from January 1
• 2The Association of Municipalities in East Iceland chair estimates a 25–30% average cost increase for travellers on East Iceland routes
• 3Approximately 62,000 residents are eligible for the programme, which funded about 80,000 subsidised journeys in 2025