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Icelandair, the national carrier, has regular and direct flights to Europe and the USA. British Airways has up to five flights a week from Gatwick. For cheaper airfares, try Iceland Express, a low cost airline with daily flights from Reykjavik to London (Stansted) and Copenhagen. Another novel way to travel between Europe and Iceland is by ferry, although it takes a lot more time and costs almost as much as a flight. A ferry service operates year-round out of Hanstholm in northern Denmark (passengers are required to spend two nights in the Faroe Islands en route).
Air Iceland (Flugfélag Íslands), Iceland's main domestic airline, provides the only reliable transport in winter, when snow and ice inhibits most overland travel. In summer, the airline has daily flights between Reykjavík and most major destinations; they aren't badly priced if you book in advance over the internet. Iceland has no railways and its highway system is Europe's least developed. However, Bifreiðastöd Íslands, a collective organisation of long-distance bus lines, does a tidy job of covering the country with a feasible, though inconvenient, network. There are also a number of ferry services linking the mainland with Iceland's larger islands.
Car-rental agencies are found in most major towns, and rates are almost bearable until you add excess kilometres, compulsory insurance and some of the world's most expensive petrol to the price.
With its unsurfaced roads, steep hills and inclement weather, Iceland is hardly a cyclist's dream. Nevertheless, an increasing number of visitors are trying it, and bikes can be rented in Reykjavík, and at some hostels and hotels outside the capital. Local transport includes taxis and municipal buses, not to mention some excellent private tour companies which can take you to Iceland's best-loved natural attractions.
