Air Iceland (Icelandic: Flugfélag Íslands) is a regional airline with its head office at Reykjavík Airport in Reykjavík, Iceland. It operates scheduled services to domestic destinations across Iceland and to Greenland and the Faroe Islands (operated by Atlantic Airways). Its main bases are Reykjavík Airport and Akureyri Airport. It is a subsidiary of Icelandair Group.

The airline was formed in Akureyri by Tryggvi Helgason as Norðurflug, and was incorporated as Flugfélag Norðurlands on 1 May 1975. A reorganisation and merger of Icelandair Domestic and Norlandair (Flugfélag Norðurlands) resulted in the present name in 1997. It is wholly owned by Icelandair Group and had 226 employees in March 2007.

In late 2011, Air Iceland acquired two Bombardier Dash 8-200 aircraft for delivery in early 2012. Upon delivery of these aircraft, Air Iceland sold its only Dash 8-100 series. It previously operated ATR 42 aircraft from 2000 to 2003.

A fleet of 3 Bombardier Dash 8-Q400 aircraft replaced the airline's 5 Fokker F50 aircraft in 2015-16. Services using the new aircraft will include a route to Aberdeen on behalf of Icelandair started in March 2016 flying out of KEF.

In February 2016, Air Iceland will introduce a new livery on all of its fleet, beginning with the Bombardier Q400 that will be delivered in February 2016 and then repainting the remaining 3 Bombardier Dash 8-200.

As of May 2016, the Air Iceland fleet consisted of the following aircraft:

Among the destinations, most in Greenland and some in Iceland have runways less than 1,100 metres (3,600 ft) length. Dash 8-200 is the only aircraft type possessed by Air Iceland compatible with such runways. The Q400s are currently used on flights to Akureyri, Egilsstaðir, Kangerlussuaq, Narsarsuaq and Aberdeen (on behalf of Icelandair).

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