In 1997 the domestic operations of Icelandair, part of which had previously been operated under the 'Flugfélag Nordurlands' branding, were combined with small airline Nordurflug to form the Air Iceland Connect subsidiary, allowing mainline Icelandair to fully concentrate on international flights since then.
En 1997 as operacións domésticas de Icelandair, parte das cales foran anteriormente operadas baixo a marca Flugfélag Nordurlands, combináronse co pequena aeroliña Nordurflug para formar a subsidiaria Air Iceland, permitindo a Icelandair concentrarse completamente nos voos internacionais dende entón.