Keflavík International Airport sits on the Reykjanes Peninsula, 50 kilometers southwest of Reykjavík. The airport code is KEF. Nearly all international flights arrive here rather than the domestic Reykjavík Airport, which handles only intra-Iceland routes and flights to Greenland and the Faroe Islands. The terminal building underwent a major expansion completed in 2016, adding 15,000 square meters of retail and passport control space. Average annual passenger volume reached 7 million before 2020, a figure that dwarfed Iceland's resident population of roughly 370,000. The airport operates 24 hours, though most transatlantic arrivals cluster between 0600 and 0900 from North America and between 1400 and 1800 from Europe due to prevailing wind patterns and airline hub connection times.
Passport control segregates European Economic Area nationals from other arrivals. Iceland joined the Schengen Area in 2001, meaning travelers from Schengen member states pass through without stamps or questions beyond showing a valid national identity card or passport. Citizens of the United States, Canada, Australia, New Zealand, Japan, South Korea, and numerous other countries enter visa-free for stays up to 90 days within any 180-day period under Schengen rules. The official requirements appear at **https://www.government.is/topics/foreign-affairs/visa-affairs/**. Wait times at passport control vary from five minutes during off-peak hours to 45 minutes when multiple wide-body aircraft arrive simultaneously. The airport installed automated eGates in 2018 for EEA nationals and certain other passport holders whose documents contain biometric chips. Officers rarely ask questions of tourists but may request proof of onward travel or accommodation if entry purpose seems unclear.
Baggage claim occupies a single rectangular hall with four carousels. Belt assignment for each flight appears on overhead monitors in Icelandic and English. Carousels begin moving approximately 20 minutes after aircraft parking, and the last bags typically arrive within 40 minutes. The airport reports a baggage mishandling rate below 4 per 1,000 passengers, which places it in the middle tier for European airports. A wooden Viking ship sculpture dominates the center of the hall, installed in 2007 as part of Iceland's cultural branding. Customs operates on a green-channel system. Travelers with nothing to declare walk through without inspection. Random checks occur, focusing on unusually heavy luggage or travelers arriving from non-Schengen origins. Iceland prohibits importation of uncooked meat, eggs, dairy products, and unprocessed wood due to strict agricultural quarantine rules designed to protect the island's disease-free livestock. Fishing equipment and riding gear must be disinfected and accompanied by a certificate, which many travelers fail to arrange in advance, leading to confiscation or mandatory cleaning at the airport for a fee that started at 5,000 ISK in 2022.
Currency exchange booths operate in the arrivals hall before and after customs, but rates include a margin approximately 8-12% worse than ATM withdrawal rates. Iceland uses the króna, abbreviated ISK or kr. The króna floated freely after capital controls lifted fully in 2017, and exchange rates fluctuate. In January 2025, one US dollar bought approximately 137 ISK, one euro approximately 147 ISK, and one British pound approximately 172 ISK, though these figures shift daily. ATMs from Arion Bank and Landsbankinn line the wall beyond baggage claim and accept Visa, Mastercard, Maestro, and Cirrus cards. Withdrawal limits range from 50,000 to 200,000 ISK per transaction depending on the machine. Card networks typically charge a foreign transaction fee of 1-3% plus whatever margin the issuing bank applies, but this combined cost nearly always undercuts currency exchange counters. Icelandic businesses accept credit and debit cards almost universally, including for small purchases. Contactless payment limits rose to 15,000 ISK in 2020. Many Icelanders go weeks without handling physical cash. Travelers should notify their card issuer before departure because Iceland's high transaction volumes sometimes trigger fraud alerts that freeze cards.
Ground transportation options from Keflavík to Reykjavík include buses, rental cars, and taxis. No train service exists anywhere in Iceland. The two dominant bus operators, Flybus and Airport Direct, run large coaches that depart 20-40 minutes after each flight arrival. Both companies maintain ticket desks in the arrivals hall. Flybus charges approximately 3,500 ISK for a direct transfer to the BSÍ bus terminal in central Reykjavík as of 2024, with an additional 1,000 ISK for hotel drop-off service that covers roughly 30 hotels. Airport Direct charges similar base rates but includes hotel drop-off in the standard price. Both journeys take 45-55 minutes in normal traffic. The buses use Iceland's Route 41, which crosses lava fields with no settlements for the first 30 kilometers. Morning rush hour between 0730 and 0900 can extend travel time to 70 minutes. Both companies offer advance online booking with a small discount, typically 200-300 ISK per ticket.
Rental cars cluster in a dedicated facility connected to the arrivals hall by a covered walkway approximately 100 meters long. Major international agencies—Hertz, Avis, Budget, Europcar, Sixt—operate counters alongside Icelandic companies such as Geysir, SADcars, and Blue Car Rental. Prices vary enormously based on season, vehicle type, and insurance choices. A compact car for one week in July 2024 cost 65,000-95,000 ISK through international agencies before insurance, while the same week in February cost 35,000-50,000 ISK. Iceland requires all vehicles to carry third-party liability insurance by law, included in rental base rates. Collision damage waiver, gravel protection, sand and ash protection, and theft protection are optional but strongly pushed by rental agents. Gravel damage accounts for a large share of insurance claims because Route 1, the Ring Road circling the island, includes unpaved segments in the east, and smaller roads throughout Iceland have loose stone surfaces that kick up and chip windshields and paint. Rental contracts for standard cars typically prohibit driving on F-roads, mountain roads designated by an F-prefix that require four-wheel drive and higher clearance. Violating this restriction voids all insurance. The minimum age to rent a car is 20 for most vehicle classes, rising to 23-25 for larger SUVs and vans.
Taxis wait outside the arrivals hall in a dedicated rank. Fixed-rate fares to Reykjavík were abolished in 2017, and rides now use meters. The journey to central Reykjavík costs approximately 18,000-22,000 ISK depending on exact destination and time of day. A 25% surcharge applies between 1900 and 0700 on weekdays and all day on weekends and public holidays. Taxis accept credit cards. Tipping is not expected or customary in Iceland, and drivers do not react to its absence. Vehicle capacity is typically four passengers plus luggage. Larger groups need to arrange multiple taxis or book a van in advance. Hreyfill and BSR are the two largest taxi companies. Ride-sharing services do not operate in Iceland after regulatory conflicts led Uber to cease operations in 2017.
The arrivals hall contains a small tourist information desk staffed during most flight arrival times but not 24 hours. Staff provide free maps of Reykjavík and Iceland, answer basic questions, and sell SIM cards. The desk does not book accommodation or tours, directing travelers instead to specific company websites. Free Wi-Fi covers the entire terminal. Connection requires accepting terms and conditions but no password or registration. Bandwidth supports email and messaging but struggles with video streaming when passenger volumes peak. Several cafés and a small grocery store operate landside before security. The grocery store, a 10-11 convenience chain, stocks essentials like bread, cheese, instant noodles, chocolate, and beverages at prices roughly 15-20% above Reykjavík supermarkets but far below the restaurants in the terminal. A 330ml Coca-Cola cost 390 ISK here in late 2024, compared to 250 ISK in a Reykjavík Bónus supermarket and 650 ISK in the terminal restaurant.