[5] It can also serve as alternate airport for flights inbound towards Keflavík, in case of adverse weather conditions there.

[7] In the early 1900s the Vatnsmýri area, where the airport is situated today, was mostly uninhabited and the most ideal flat landing site for aircraft in the vicinity of Reykjavík.

The small city was barely developed and the Vatnsmýri area was mostly unusable for normal construction due to its marshy conditions.

[12][13] In World War II, after Iceland had been occupied by the British Army, the construction of an airport was pertinent for military operations.

The Black Watch regiment along with a large contingent of local Icelandic labourers built the first runway over sunken oil barrels.

Multiple aircraft hangars and Nissen huts were constructed by the British Army, many of which continue to be used into the 21st century.

Flugfélag Íslands (Icelandair), inherited the ownership in 1947 of a small building constructed by the British Army on the west side of the airport.

[8] Loftleiðir (Icelandic Airlines) commenced flights in 1947 from a small hut on the east side of the airport, initially flying domestic routes.

As passenger volumes increased, Loftleiðir began planning a new large terminal building on the east side of the airport in 1962.

One option was to construct a new airport on the Álftanes peninsula, located approximately 15 km by road from central Reykjavík, which was relatively undeveloped at the time.

Using it's domestic fleet, some short-haul international destinations remained, such as flights to the Faroe Islands (Routed onwards to Glasgow and Copenhagen until the 1990s).

Until 2018, the Faroese airline Atlantic Airways operated flights to Reykjavík Airport using Airbus A319 aircraft.

Atlantic Airways was the last regularly scheduled passenger operator of jet aircraft at Reykjavík Airport.

[28][29] Icelandair's De Havilland Canada Dash 8 turboprop aircraft are based at the airport and served flights to Nuuk, Ilulissat, Kulusuk and Narsarsuaq in Greenland.

[34] Local, rural and national stakeholders have conflicting views on the future of the airport and the effects of new development, closure or maintaining the status quo.

Opponents consider its current location unsuitable due to the large valuable land area it occupies, local noise pollution and environmental issues.

An agreement was reached between Reykjavik city council and the Icelandic state to close the shortest runway, 06/24.

[37] The debate about the future of the airport generally focuses on three major options:[38] In 2001, there was a local referendum in Reykjavik on the matter, keep Reykjavík Airport at present location or move air traffic elsewhere within 15 years, where the result was fairly equal but a small overweight (49.3% against 48.1%) moving the traffic.