Icelandair is the flag carrier of Iceland, with its corporate head office on the property of Reykjavík Airport in the capital city Reykjavík. It is part of the Icelandair Group and operates to destinations on both sides of the Atlantic Ocean from its main hub at Keflavík International Airport. The geographical position of Iceland is convenient for one-stop transatlantic flights via the Atlantic Bridge route, which is one pillar of the airline's business strategy, along with traffic to, from, and within the country.

A flag carrier is a transport company, such as an airline or shipping company, that, being locally registered in a given sovereign state, enjoys preferential rights or privileges accorded by the government for international operations.