Keflavík Airport expands by a third as Iceland’s tourism boom continues

Keflavík International Airport has officially opened its new East Wing, marking a significant milestone in its expansion to meet the growing demands of Iceland’s booming tourism industry. The first passengers passed through the newly built wing yesterday, as the airport increased its terminal size by nearly 30% to accommodate rising traveler numbers.

The expansion comes in response to record-breaking tourism growth over the past decade, which has put increasing pressure on Iceland’s main international gateway.

“This is an incredibly necessary expansion, and we urgently need more space after the increase in traffic over the past decade,” Guðmundur Daði Rúnarsson, Director of Business and Development at Isavia told national broadcaster RÚV. “It is a great pleasure to see this facility finally coming into use.”

The new East Wing, which has been under construction since 2021, features four additional boarding gates, two new bus gates, expanded seating areas, and upgraded baggage handling facilities. These upgrades aim to streamline airport operations, reduce congestion and improve the passenger experience, especially during peak travel seasons when Iceland sees millions of international visitors.

Iceland’s appeal as a bucket-list destination has skyrocketed in recent years, driven by its dramatic landscapes, Northern Lights tourism, and growing popularity as a stopover hub between North America and Europe. This increase in visitors has made Keflavík one of the busiest airports in the Nordic region, necessitating urgent expansions to keep up with demand. The expansion not only benefits tourists but also strengthens Iceland’s economy, which is heavily reliant on the travel industry.

According to KEF’s passenger forecast for the year, nearly 8.4 million guests are expected to pass through the airport in 2025. In January, a total of 469,059 guests travelled through the airport, marking a 4% increase compared to January last year.