A new airline called Wow Air will begin offering budget flights to Iceland from June 1st, Travel Weekly reports.
Baldur Baldursson, chief executive of the carrier, described how his team have "ambitious plans" for the airline, only launched in 2011, including the possibility of a greater frequency of flights to London from next year.
To begin with, Wow Air will fly from London Stansted to Iceland's Keflavik airport three times per week, which make it a travel option for people planning Northern Lights breaks in the country.
"We are aware that it is a brave move to launch a new airline in the present economic climate but have spotted an obvious gap in the market for low-cost flight options from Iceland to a number of European cities," Mr Baldursson.
According to Travel Daily UK, the move was partly triggered by an increase in tourism between London and Iceland. To entice travellers, the airline is offering flights for an introductory price of £69, which includes taxes and 20 kilogrammes of baggage.
Holidaymakers could find themselves flying to other destinations via Wow Air in the future as well, since the company is looking at beginning routes to Iceland from 11 further European cities, such as Copenhagen, Paris, Berlin, Zurich and Krakow.