Public Bus Fares Rise Today in Iceland Skip to content

Public Bus Fares Rise Today in Iceland

By Yelena

Bus in Reykjavík, Iceland
Photo: Golli. Lækjatorg bus stop in Reykjavík.

New and higher public bus fares take effect in the capital area and across Iceland today. A single fare in the capital area is now ISK 650 ($4.69, €4.36), a rise of just over 3% from the previous fare of ISK 630 ($4.55, €4.23). A notice from Strætó, Iceland’s public bus service, says the fare hike is due to rising costs and salary hikes. The price of passes has been raised even more, around 3.85%.

Wage hikes largest driver

This is the second time that Strætó raises bus fares this year. At the end of 2023, a single fare cost ISK 570 krónur ($4.11, €3.83). That was raised to ISK 630 at the beginning of 2024, and is now being raised to ISK 650. This entails a 14% rise in just over six months. While inflation remains above fiscal targets in Iceland, yearly inflation was measured at 5.8% in June, significantly lower than the fare hikes Strætó has instituted. Strætó’s CEO Jóhannes Rúnarsson says that wage hikes are the largest driver of the fare hikes, and that wages account for 50-60% of Strætó’s operational costs.

Countryside bus fares also rise

In line with Strætó’s decision, the Icelandic Road and Coastal Administration has also raised the price of single fares in the countryside by 5.3%. This means that a public bus trip from Reykjavík to Akureyri will cost ISK 13,200 ($95.28, €88.64), where it formerly cost ISK 12,540 ($90.52, €84.22). A trip from Reykjavík to Keflavík will now cost ISK 2,400 (previously ISK 2,280).

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