Iceland’s flag carrier operates year-round service between Keflavik (KEF) and Lisbon (LIS) and launches a new Reykjavík – Faro (FAO) route on March 26, 2026.
Icelandair inaugurated its Keflavik – Lisbon service on October 11, 2024, and converted the initially seasonal schedule into year-round operations on the back of strong demand. The airline now operates around seven direct KEF – LIS flights per week with a 4h 20m flight time.
On March 26, 2026, Icelandair will add a new Reykjavík – Faro (Algarve) route, opening direct air connectivity between Iceland and southern Portugal for the first time and positioning the Algarve as a secondary Portuguese gateway alongside Lisbon.
Icelandair’s Portuguese network is a quiet but meaningful piece of Nordic-Iberian corridor infrastructure. Lisbon year-round gives Icelandic, Faroese and US-stopover business travel a direct line into Portugal’s capital; adding Faro connects the Algarve — one of the densest Nordic expat markets in Southern Europe — to the Reykjavík hub.
Fractio helps Nordic B2B operators enter the Portuguese market — with local presence, without the overhead.
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