AGP Executive Report

Diplomacy: Foreign Minister Þorgerður Katrín Gunnarsdóttir is visiting China from October 26 to 31 at the invitation of her Chinese counterpart. Climate Preparedness: Iceland has stepped up planning for a possible weakening or collapse of the Atlantic circulation, testing how the country would handle social, economic and security impacts. Nature Funding: Iceland joined Germany, Monaco, Québec and Berlin in pledging more than $60 million to a global biodiversity fund at COP17; the wider conference also secured fresh funding for environmental action. Energy: An Imperial College London review says an Icelandic geothermal demonstration plant could produce cost-competitive sustainable aviation fuel under the right conditions. Travel Links: A proposed ferry route would connect Aberdeen with Seyðisfjörður, while Delta plans to resume Boston–Reykjavík flights next April. Aviation Disruption: A strike cost Icelandair half a billion ISK, according to reports.

Air Links: China’s winter-spring schedule adds planned passenger services to Iceland as airlines expand routes amid stronger travel demand. Icelandair: A strike cost the carrier about ISK 500 million; separately, the victim of a crash at Hellisheiði was reported in stable condition. Business and Research: An Icelandic land-based farming company raised $12 million, while Arctic Therapeutics secured $21.5 million to advance autoimmune drug programs. Connectivity: Iceland and Canada signed a Coast Guard cooperation plan, and landing sites were chosen for a planned subsea cable linking Iceland and Scotland. A proposed ferry route between Iceland and the UK is also under development. Economy: Iceland’s unemployment rate fell to 5.7% in September.

New Air Link: Air China is due to launch a Beijing–Copenhagen–Reykjavík service today, the first scheduled route to Iceland by a Chinese mainland airline. The roughly 15-hour journey will add a new connection between East Asia and Iceland. Business Expansion: Icelandic abalone farmer Aurora Abalone has raised $12.4 million to expand production at a new Reykjanes Peninsula facility, which the company says will become Europe’s largest abalone farm. Aviation Costs: A strike has cost Icelandair an estimated half a billion ISK, adding to pressure on the national carrier. Subsea Connection: Plans are advancing for a new cable linking Scotland and Iceland by 2030, with landing sites selected.

Business: Icelandic abalone producer Aurora Abalone has raised ISK 1.5 billion to expand its Reykjanes farm, aiming for annual production of 100 tonnes at what it says will be Europe’s largest abalone farm. Happiness: Iceland ranks second in the 2026 World Happiness Report, just behind Finland and narrowly ahead of Denmark. Football: Iceland international Andri Gudjohnsen scored twice for Blackburn in a 2-0 win over Wrexham, extending his scoring run and lifting his side closer to the Championship play-off places. Aviation: A recent strike cost Icelandair half a billion ISK, while plans for a subsea cable linking Iceland and Scotland are advancing, with landing sites selected.

Sport: Iceland striker Andri Gudjohnsen scored twice in Blackburn’s 2-0 win over Wrexham, taking his tally to eight goals and bringing the club within two points of the play-offs. Transport Safety: An investigation into a 2025 emergency landing on South Iceland’s main highway found the pilot was not told about the nearby Sandskeið airfield after an engine failure. Neither the pilot nor his dog was hurt. Icelandair: A strike cost the airline half a billion ISK, while it also reported record third-quarter revenue despite high fuel prices as it renews its fleet. Connectivity: Plans are advancing for the AUDUR subsea cable linking Iceland and Scotland, with landing sites identified and service targeted by 2030. A new ferry route from the UK to Iceland is also being explored. Travel: Visitors are advised to drink Iceland’s clean tap water rather than buy bottled water; North Iceland’s Forest Lagoon is another geothermal option beyond the Blue Lagoon.

Road Safety: One person was seriously injured in a collision on icy Hellisheiði; their condition is stable. Several other crashes were reported nearby, and the road has since reopened. Icelandair: The airline posted record third-quarter revenue of ISK 80.5 billion, but a September mechanics’ strike cost about ISK 500 million. It expects an operating loss for the year. Arctic Cooperation: Canada and Iceland’s coast guards agreed to expand joint training, information sharing and cooperation on maritime security and climate resilience. New Links: Landing sites have been confirmed for a subsea cable connecting Iceland and Scotland by 2030. Separately, a passenger and freight ferry between Aberdeen and Seyðisfjörður is under discussion, though service remains years away. Visitor Tips: Iceland’s tap water is exceptionally clean, so travellers can skip bottled water; Akureyri’s Forest Lagoon offers a quieter geothermal alternative to the Blue Lagoon.

Road Safety: One person was seriously injured in a crash on icy Hellisheiði; the victim is in stable condition, and the road has reopened. Several other collisions were reported nearby. Icelandair: A September mechanics’ strike cost the airline about ISK 500 million and disrupted 5,500 passengers. Despite record third-quarter revenue, Icelandair expects a full-year operating loss; its fleet renewal is aimed at cutting costs and seasonal swings. AI and Energy: A data-centre pilot in Iceland showed Emerald AI and Nvidia could temporarily reduce server-rack power use by about 25%, potentially easing pressure on the electricity grid. Maritime Cooperation: Canada and Iceland signed a coast guard plan for joint exercises, information sharing and stronger Arctic readiness. Ferry Link: Aberdeen and eastern Iceland are exploring a passenger and freight service, but the proposal is still at an early stage, with commercial viability and border arrangements unresolved.

Telecoms: Iceland’s communications regulator is consulting on opening the 3.8–4.2 GHz band for local 5G and private networks, with comments due November 10. Arctic Security: The EU’s new Arctic strategy prioritizes maritime surveillance, military mobility and subsea infrastructure. A NATO readiness ranking placed Iceland last among 32 allies, reflecting its lack of military forces. Connectivity: Landing sites have been confirmed for a proposed Scotland–Iceland subsea cable, targeted for 2030. Economy and Travel: Iceland’s jobless rate fell to 5.7% in September. Icelandair also completed its purchase of a 49% stake in PLAY’s Maltese operation, adding an air operator certificate. Grindavík: A majority of Icelanders surveyed believe long-term life in the volcanic town is realistic.

Telecoms: Iceland’s communications regulator is seeking public comment until 10 November on opening the 3.8–4.2 GHz band to local 5G and private networks, including for ports, factories and energy companies. Air Links: Air China is due to begin three weekly Beijing–Keflavík flights via Copenhagen on 26 October. Kales Iceland will handle cargo sales, with the new route expected to support seafood exports and trade with China. Subsea Connection: Korda has chosen landing sites in southern Iceland and Scotland for its planned Auður cable, with seabed surveys and onshore route work slated for 2027. Jobs: Youth unemployment reached 17.3% in the second quarter, up from 7.6% a year earlier, while Iceland’s overall jobless rate was 5.7% in September. Trade: Iceland’s exports to Vietnam rose 40% last year, and a new EFTA–Vietnam agreement is set to remove tariffs on most exports. On Stage: Queens of the Stone Age are scheduled to play Reykjavík on 24 October.

Youth Employment: Unemployment among Icelanders aged 16–24 reached 17.3% in the second quarter, up from 7.6% a year earlier. ASÍ warns the cooling economy and falling job vacancies could worsen conditions heading into winter. China Ties: Foreign Minister Þorgerður Katrín Gunnarsdóttir plans meetings with Chinese officials shortly before Air China begins three weekly Beijing–Keflavík flights via Copenhagen on October 26. Digital Links: Farice has merged with Oryggisfjarskipti and Neyðarlinan’s technical arm to form Korda Networks, which operates Iceland’s submarine cables and is advancing the AUÐUR link to Scotland, targeted for 2030. Trade: Iceland’s exports to Vietnam rose 40% last year, and a new EFTA–Vietnam trade deal is expected to widen opportunities for seafood, geothermal energy and green technology. Travel: Reykjavík’s geothermal pools, lava displays and glacier-inspired galleries offer visitors an up-close taste of Iceland’s fire-and-ice landscape. Pensions: Iceland placed fourth in a global pension index, scoring 84 points and retaining its top-grade rating.

Connectivity: Icelandic telecom firm Korda has chosen landing sites for the planned Auður subsea cable: Meðalland on Iceland’s south coast and Irvine Bay in Scotland. Surveys are due in 2027, with service expected around 2029–30. Weather: Freezing temperatures brought icy roads across the capital area and much of the country; drivers are urged to take care. Economy: Iceland’s seasonally adjusted unemployment rate fell to 5.7% in September, down from 6.8% in August. Trade: Iceland and its EFTA partners signed a free trade agreement with Vietnam, covering goods, services and investment; it still needs to enter into force. Arctic Security: A UK parliamentary report placed Iceland last in NATO’s rearmament ranking, noting the country has no military capability, as European and NATO discussions increasingly focus on Arctic security and undersea infrastructure. Screen: Production of Icelandic crime drama Vigilant, starring Ólafur Darri Ólafsson, is set to begin in Iceland on October 29.

Road Conditions: Freezing temperatures left icy patches across Reykjavík and much of the country’s main roads. Authorities advise motorists to take care, with several mountain routes snow-covered. Arctic Security: The EU’s new Arctic strategy puts maritime surveillance, subsea cables and icebreakers at the centre of its plans. Iceland, though not an EU member, is part of the bloc’s single market and a key Arctic partner. Ferry Link: A proposed Aberdeen–Seyðisfjörður service could improve travel and trade links, with Lerwick also a possible stop. The idea is still at an early stage, and its commercial feasibility has yet to be assessed. Pensions: Iceland ranked third worldwide in a new comparison of 55 retirement systems, earning an A grade and a score of 84.0. Aviation: Icelandair has completed its purchase of a 49% stake in PLAY’s Maltese operation, adding a new air operator certificate.

Arctic Security: The EU’s new Arctic strategy puts security at its core, with plans for more icebreakers, stronger protection for undersea cables and a secure link from Greenland to Europe. Iceland is named as a key regional partner, as tensions with Russia and uncertainty over US policy reshape the region. Clean Energy: An independent review says Syntholene’s geothermal-powered demonstration facility in Húsavík has proved its technology can produce synthetic aviation fuel, with competitive costs possible under favourable conditions. Travel Links: A ferry service between Aberdeen and Seyðisfjörður has been proposed, while Icelandair has completed its purchase of a 49% stake in PLAY’s former Maltese operation. Women’s Football: Iceland will face Portugal in a two-leg World Cup playoff, with the return match set for Reykjavík on December 5.

Arctic Security: The EU is preparing to expand its Arctic presence, including plans for more icebreaker capacity and a secure undersea cable linking Greenland with Europe. Iceland is among the allies involved in NATO’s Arctic mission, which Spain will support with personnel at the Alliance’s headquarters. Biotech: The U.S. FDA approved a new Alvotech manufacturing process in Reykjavík that more than doubles output per batch, freeing capacity for other medicines. Women’s Football: Iceland will face Portugal in a two-leg playoff for a place at the 2027 World Cup, with the first match in Guimarães on December 1 and the return leg in Reykjavík on December 5. Trade and Travel: Iceland and its EFTA partners have signed a free-trade agreement with Vietnam. Icelandair has also completed its purchase of a 49% stake in PLAY’s former Maltese operation. Transport: Aberdeen and the east Iceland municipality of Múlaþing are exploring a ferry link to Seyðisfjörður, though a service could take years to launch.

Aviation: Icelandair has completed its purchase of a 49% stake in Fly Play Europe, giving it access to the Maltese subsidiary’s air operator certificate and more flexibility for future operations. The deal cost $686,000, and Icelandair can increase its stake later. Education: The Education Ministry reversed course and will give municipalities and compulsory schools that request them their individual PISA 2025 results, after further analysis of OECD data. Fisheries: Iceland and other Northeast Atlantic coastal states agreed to set 2027 blue whiting and herring quotas in line with ICES scientific advice, but have yet to agree how the quotas will be shared. Travel: Delta plans daily seasonal nonstop flights between Boston and Reykjavík from April 2027, adding another direct link to Iceland.

Grindavík: Nearly 60% of evacuated residents surveyed believe long-term life in the town is realistic, while safety and housing remain key concerns. Just over 15% currently live there. Trade: Iceland joined Norway, Switzerland and Liechtenstein in signing a free-trade agreement with Vietnam, covering goods, services, investment and more. Arctic links: The EU plans to help fund a secure undersea cable between Greenland and Europe, potentially extending through Canada toward Asia. Greenland’s existing connection runs through Iceland. New flights: Delta will launch daily seasonal Boston–Reykjavík service on April 12, 2027; Israel’s Arkia plans nonstop flights to Reykjavík from June, the first regular Iceland route operated by an Israeli airline. Fishing: Marine scientists and seafood retailers warn that overfishing is putting North Atlantic stocks at risk, urging Iceland and other fishing nations to keep catches within sustainable limits.