As Icelandair’s traditional transfer business between Europe and North America remains under pressure, the flag carrier is adjusting its network and fleet.
Southwest may soon announce new international airline partners, while assessing what aircraft type will best support flying longer-haul on its own metal.
Local rival LCC Play is changing its strategy, making Icelandair the only hub carrier at Keflavik, amid a weakened transit market for Iceland's flag carrier.
This week the Carbon Analysis focuses on Icelandair, which is is set to end widebody operations by 2030, instead focusing on developing its narrowbody offering.
Longer-range narrowbodies like the Airbus A321XLR will redefine networks through flexibility and efficiency—not just range, say panelists at Routes Europe 2025.
The certification came as Southwest formally signed an agreement with Icelandair, making the North Atlantic airline its first interline partner carrier.
Icelandair expects improvement on yields as local competitor Play enacts changes to its business model and significant capacity cuts on North Atlantic routes.
The agreements come well ahead of major aviation changes in the region, with the impending launch of international flights from Greenland’s capital Nuuk.
Icelandair’s new route to Nashville comes after the carrier signed a memorandum of understanding with Southwest Airlines to become its first interline partner.
Icelandair reported a second quarter (Q2) net profit of $0.6 million, versus $13.7 million in Q2 2023, negatively affected by softer demand to Iceland.
