East Iceland residents accuse minister of breaking Loftbrú promise
Saturday 24th October 2026 on 18:15 in
Iceland
Residents across East Iceland are angry over planned changes to Loftbrú, an air travel subsidy scheme, saying the government announced them without the consultation it had promised, mbl.is reports. Ragnar Sigurðsson, chair of the Association of Municipalities in East Iceland, said Infrastructure Minister Eyjólfur Ármannsson had gone back on his word.
“People here across all of East Iceland are very angry and disappointed. It had been promised that Loftbrú would not be changed without consulting us. That promise has now been broken,” Sigurðsson told mbl.is.
He said Ármannsson told parliament earlier this year, after rumours of changes began circulating, that no changes would be made without consulting municipalities and people in rural areas. Sigurðsson said no such consultation had taken place.
From the start of the new year, the subsidy will cover 7,000 Icelandic krona per flight leg, instead of 40 per cent of the fare.
Sigurðsson said the change came on top of other measures affecting rural communities. He cited the planned closure of health inspection services, reductions in the number of police districts and proposals to reduce the number of MPs representing the constituency. He also pointed to the potential effects of an increase in the kilometre charge and said a VAT charge on bathing lagoons was another measure affecting people outside the capital region.
“These are all measures aimed at reducing services and lowering quality of life in rural areas,” he said. People living furthest from the capital region would be hit hardest, he added, because services had become concentrated there and residents in the east often had to travel south to access them.
Ármannsson has said the changes would encourage people to book earlier and choose cheaper fares. Sigurðsson said that did not reflect the reality for East Iceland residents, who often travel south for medical care and other public services and rarely have much notice.
Local government representatives and regional associations are discussing their next steps. MPs for the Northeast Constituency have been invited to a joint meeting, and a meeting with the minister has been requested. Sigurðsson said he expected the changes to be met with strong opposition and was not optimistic that Ármannsson would engage in further talks.