This is the 804th most frequent Icelandic word.
keflavík
"Keflavík" is a town in Iceland, meaning "Driftwood Bay."
In this sentence, 'Keflavík' serves as the proper noun referring to a specific place, which is a small town in Iceland.
Keflavík er lítil borg á Íslandi.
Keflavík is a small town in Iceland.
Here, 'Keflavík' refers to the international airport located near the town of Keflavík, which is a common departure point for international flights.
Ég flaug frá Keflavík til London.
I flew from Keflavík to London.
In this instance, 'Keflavík' again denotes the town and is used to specify the location of the museum being mentioned.