Iceland’s infrastructure minister plans to raise the proposed Loftbrú rural-flight subsidy to 9,000 ISK per eligible flight leg, revising an earlier proposal after objections from regional leaders, Iceland Review reports.
Eyjólfur Ármannsson told mbl.is that he intends to add about 200 million ISK to the programme. That would bring its annual budget from 600 million ISK to approximately 800 million ISK. The higher payment would apply when the new fixed-payment arrangement begins on January 1.
The government’s original proposal would have replaced support covering 40% of eligible domestic airfares with a flat payment of 7,000 ISK per flight leg. The minister’s revision increases that proposed payment by 2,000 ISK.
According to Iceland Review, municipalities and regional associations in East Iceland objected over the weekend to the restructuring announced on Friday. They argued that a 7,000 ISK payment would leave residents paying substantially more for flights to Reykjavík and said they would ask the government to reconsider.
The minister said a fixed payment was intended to make the programme fairer and its costs easier to budget. His revised proposal retains that approach while increasing the amount available for each eligible journey.
The restructuring preserves eligibility for six subsidised one-way trips each year. Loftbrú serves residents living far from the capital region, where domestic flights are often used to access healthcare and other essential services.
Launched in 2020 to reduce domestic travel costs outside greater Reykjavík, the programme would therefore continue under a different payment model. The latest announcement changes the planned amount; the minister has described the additional funding as an intended revision.
