This company has some direct flights to/from Dublin/Iceland. They're mostly doing packages, but it's possible to book individual flights through them as well.

I just booked my flight back from Iceland through them, for 99 euro one-way. This is cheaper, much more convenient and a little more environmentally friendly than detouring through London or some other European hub. Yay!

I fly back late in the evening on Tuesday the 19th of August, having been away from Dublin for exactly a month; I fly to California on the 19th this weekend.

...

I've taken the somewhat wishy-washy eco-stance that if I'm going to fly (which I shouldn't, but do anyway), I will at least try to minimize my impact by flying the shortest routes possible, even if it is a little more expensive.

It so happens that this is remarkably similar to paying a bit more for the luxury of a direct flight, except I can tell myself that I'm an eco-hippy, and not just a spoilt brat who is willing to fork over cash for comfort...

Well, it would be if it actually cost more. In this case, I'm paying less for a much better flight. It's a win-win-win situation.

...

Update: Turns out they're just reselling tickets from Úrval Útsýn. But ordering them through the Dublin people was cheaper. Go figure! :-)