Loftleiðir HF, internationally known as Icelandic Airlines or Loftleiðir Icelandic, was a private Icelandic airline headquartered on the grounds of Reykjavík Airport in Reykjavík, which operated mostly trans-atlantic flights linking Europe and America, pioneering the low-cost flight business strategy on these routes.

A low-cost carrier (LCC) or low-cost airline, also called no-frills, budget or discount carrier or airline, is an airline that is operated with an emphasis on minimizing operating costs. It sacrifices certain traditional airline luxuries, for cheaper fares. To make up for revenue lost in decreased ticket prices, the airline may charge extra fees such as for carry-on baggage. As of April 2020, the world's largest low-cost carrier is Southwest Airlines, which operates primarily in the United States, as well as in some surrounding areas.