On a whim, I decided to check out Google Maps and see how far it was from Reykjavik to Keflavik (the name of the airport of course, and also, from what I remember, the name of the town for which the airport's named). However, when I search, I can only find a town called Reykjanesbær.
Wikipedia has a listing for the town of Keflavik, and gives this location. As you can see, it takes me to Reykjanesbær.
What happened?