How a national airline rose from a severe economic depression

Countries & Cities · Published 12 October 2026 · Updated 25 October 2026 Swipe more like this →

In short: Born from a desire for independence and a struggle against economic collapse, Atlantic Airways transformed the Faroe Islands' connectivity. From a government-backed startup to a transatlantic operator, the airline's journey reveals the complexities of maintaining vital links in a remote archipelago.

Established in 1987, Atlantic Airways was a joint venture between the Faroese government (51%) and Danish carrier Cimber Air (49%), before the government assumed full ownership in 1989. The airline's mission was to build a commercial aviation industry that ensured the Faroe Islands remained connected to the outside world. This was a significant shift from the previous era, where Maersk Air held a monopoly on services to the islands. The airline's initial flights between Vágar and Copenhagen utilized a British Aerospace 146. This new service was highly popular despite the company's turbulent economic beginnings.

The carrier's early years were marked by extreme financial volatility. During a severe economic depression in the early 1990s, the airline struggled to remain viable. At its lowest point in 1992, the Faroese government had to provide 75 million DKK in aid to keep the company afloat. It was not until 1995 that the airline finally achieved profitability, subsequently launching new routes to Reykjavík and Greenland. In the late 1990s, the network expanded to include destinations like Aberdeen and Billund. These additions helped stabilise the company's finances during a period of growth.

Beyond passenger transport, the airline plays a critical role in island logistics through domestic helicopter services. These 'hopper' flights connect islands that are otherwise only accessible by sea, such as Suðuroy and Mykines. The company is also mandated to maintain at least one helicopter ready for search and rescue duties. While the airline has expanded its fleet with Airbus A320s and even attempted transatlantic routes to the U.S., it remains a vital lifeline for the archipelago's survival and tourism. The fleet has evolved to include modern Airbus aircraft, including the A320neo. Additionally, the airline maintains a requirement to keep one helicopter ready for rescue operations.

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