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Hidden: less than a tender offer
Internal flights look expensive at face value — typically ISK 22,000–35,000 one way per person. But once you account for the 5+ hour drive, fuel (ISK 8,000+), one extra overnight stop, and the value of your time, flying often wins on net cost and definitely wins on time.
The exception: if the drive IS the trip — waterfalls, fjord views, glacier pull-offs — then "saving" 4 hours costs you the entire south coast. This calculator treats your hourly value as a tunable input, because for some people a 5-hour drive is the whole point.
FAQ
Which airlines fly internally?
Air Iceland Connect (Icelandair subsidiary) and Eagle Air. They depart from Reykjavík City Airport (RKV) — much closer to downtown than KEF. Tickets are released ~9 months out and get more expensive closer to departure.
Can I take a rental car on the flight?
No — but you can pick up a separate rental at Akureyri, which is often cheaper than carrying your Reykjavík rental for 5 hours on a one-way trip. Many companies charge one-way fees (ISK 10,000–30,000).