Construction on the runway started on 13 May 1996. The work included an new terminal building with a new border control. This was needed to allow up to 50 people to travel abroad on one flight, mostly foreign workers at Aker Stord. Hardanger Sunnhordlandske Dampskipsselskap started an airport coach service between Leirvik and the airport from 2 September 1996. The upgrades to the runway were taken into use on 7 November. Air Stord was in financial difficulties, and the airport company was forced to write off three-quarters of the company's NOK 750,000 debt, or see the airline file for bankruptcy. From 15 June, Widerøe started a Sunday route from Sandefjord Airport, Torp via Oslo to Sørstokken and then Flesland, before returning to Torp, using a Dash 8-100 aircraft. From January 1998, Coast Air started flights once a week from Skien Airport, Geiteryggen via Stavanger and Stord to Bergen, using a British Aerospace Jetstream.