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Social Value Creation of Keflavík Airport

The airport is the largest gateway for airlines and passengers entering the country, the airport creates value not only for tourism in Iceland but for the whole country with increased prosperity and quality of life. We provide resources to our operations which, through the operation of the company, create value for different stakeholders. It can take the form of prosperity and business opportunities, increased employment opportunities, tax revenues for the government, diversity and knowledge sharing.

In collaboration with a British company, we have measured the social value creation of Keflavík Airport's operations. The results enable us to work even more systematically towards the goal of increasing social value creation in co-operation with business partners and suppliers. The Value2Society methodology was used for this purpose, it measures both positive and negative value creation by the operation. The results indicate how Keflavík Airport's operations are fulfilling the company's objective of improving quality of life and well-being in Iceland, providing a better analysis of improvement opportunities for its operations. The goal is to maximise the company's profitability and value creation throughout the whole value chain, while working continuously on environmental and social improvements where human rights and people's quality of life are at the forefront. The social impact of the operation of Keflavík Airport is divided into the following six categories:

Examples of positive social value creation

  • Job creation from the operation of the airport has an impact on improving people's living standards and reduces costs for the state and municipalities due to lower unemployment.
  • The systematic development of knowledge among employees not only leads to more qualified employees for the company but also more qualified individuals into the labour market where their knowledge and skills have been built. Increased knowledge also leads to increased safety at the airport.

Examples of negative social value creation

  • CO2 emissions have both negative environmental impacts and negative economic impacts
  • Employee turnover affects hiring costs and productivity when an employee leaves and a new one takes over. Unemployment affects social cost

 To better understand the impact of Isavia ohf.'s value creation it is interesting to compare the revenue in 2022 with social value creation in the same year. Isavia's revenue was ISK 18.1 billion. The social value creation from the direct operation of Keflavík Airport was ISK 27.6 billion. For every billion dollars in revenue, one and a half billion in social value creation is generated from its own operations.

We are using the results received from the V2S project to initiate projects that improve our efforts to increase the positive impact and reduce the negative impacts.