1937 A fledgling airline named Flugfélag Akureyrar is founded in Akureyri on Iceland's north coast.
1940 Flugfélag Akureyrar moves its headquarters to the capital, Reykjavík, and changes its name to Flugfélag Íslands. The company later assumes the international trade name Icelandair.
1944 Three young Icelandic pilots, returning from flight training in Canada, found Loftleidir, later also known as Icelandic Airlines.
1945-7 Initially, both Flugfélag Íslands and Loftleidir concentrate on domestic air services. In 1945 Flugfélag Íslands makes its first international flights to Scotland and Denmark. Loftleidir begins international operations in 1947.
1953 Loftleidir commences its pioneering low-fare services across the North Atlantic.
1973 Flugfélag Íslands and Loftleidir merge under a new holding company, Flugleidir.
1979 Flugleidir assumes all operating responsibilities of its two 'parents,' and decides to use Icelandair as its international trade name. It retains the Flugleidir name in the domestic market.