Eagle Air Iceland

7 January 2025 | Blog #15

The turn of the year is a perfect time to reflect. In commercial aviation, it has almost become a tradition to identify the airlines that didn't make it into the new year. The reasons are diverse: from financial difficulties to mergers, and even the revocation of operating licenses. Each year, airlines from all over the world are forced to cease operations. 

Although I closely follow developments in commercial aviation on an almost daily basis, one airline stood out to me among the casualties: Eagle Air (FEI). This regional airline from Iceland had been in operation for over 50 years, a rarity in the highly dynamic aviation industry. For this reason alone, it is worth taking a closer look at this player. 

Founded in 1970, the regional carrier specialized in (subsidized) domestic flights, charter services, and sightseeing flights. Initially headquartered in Isafjordur (IFJ), the company moved its base to Reykjavik (RKV) in 1995. The airline connected the Icelandic capital with remote communities such as Bildudalur (BIU), Gjogur (GJR), and Thorshofn (THO), which are otherwise only accessible via lengthy road journeys. It’s also worth noting that Iceland has no rail transport due to the absence of the necessary infrastructure. In my book “All You Need to Know About European Airports”, which includes an in-depth analysis of all Icelandic airports, the airline also operated flights to Hornafjordur (HFN), Husavik (HZK), and Vestmannaeyjar (VEY). 

The fleet most recently consisted of one Jetstream 31, one Jetstream 32, one Dornier 328, and one Cessna 207A. These aircraft types proved ideal for the demands of Icelandic regional aviation. Together with Icelandair (FI) and Norlandair (FNA), Eagle Air served Iceland’s domestic market, with no direct competition between the carriers on any route. 

The years 2023 and 2024 marked significant changes in the airline’s history. In January 2023, Icelandic airline Myflug (founded in 1985), along with other investors, acquired more than three-quarters of Eagle Air’s shares due to the carrier’s financial struggles. In October 2024, Eagle Air was declared bankrupt, and its Air Operator Certificate (AOC) was revoked. Until that point, Myflug (MYA) had not operated scheduled flights but subsequently took over Eagle Air’s remaining routes to Hornafjordur and Vestmannaeyjar. These flights are now conducted using Beechcraft Super King Air aircraft. 

The end of Eagle Air’s operations has thus been carried forward by its former majority owner. Iceland’s regional carriers remain a trio, and it is to be hoped that the Icelandic government will continue to support Public Service Obligation (PSO) routes to ensure optimal regional connectivity. 

Photo Credit: Tony Hisgett