Icelandair Expands North American Network: Now Serving 23 US & Canadian Airports

Image Credit : Gemini AI

Icelandair is pushing forward with one of its most ambitious North American expansions ever. With its latest 2025–2026 network adjustments, the airline now counts a total of 23 airports across the United States and Canada within its broader service and partner-fed reach. This milestone underscores Icelandair’s long-term plan to strengthen Reykjavík as a major transatlantic transfer hub — a strategy that has steadily elevated Iceland’s global aviation significance over the last decade.

This expansion blends a mix of Icelandair-operated flights, newly announced services, and partner-connected gateways, all designed to funnel more passengers between North America and Europe through the airline’s Keflavik (KEF) hub.

A Strategic Turning Point: Why Reaching 23 North American Airports Matters

Icelandair has long relied on its unique geographic advantage: Iceland sits directly between North America and Europe, making it a perfect midpoint for travelers. While the airline has served the continent for decades, hitting 23 airports marks a major evolution. It signals Icelandair’s intent to make KEF one of the most efficient transatlantic connection points, rivaling traditional hubs like Dublin, London, and Amsterdam.

According to airline strategy updates in 2025, the company aims to increase its daily transatlantic capacity, heighten connectivity with partner airlines, and shift more passengers through Iceland rather than relying solely on direct city-to-city routes.

This milestone also places Icelandair in a stronger competitive position among mid-sized European carriers that rely heavily on transfer traffic to remain profitable.

What Is Fueling This Growth? The Key Drivers Behind Icelandair’s Expansion

1. A Deepened Strategic Partnership With Southwest Airlines

One of the biggest catalysts behind Icelandair’s network growth is its expanded partnership with Southwest Airlines, officially enhanced in 2025. While Southwest does not operate long-haul flights, its network inside the United States is massive — and Icelandair gains direct access to that domestic coverage.

Through this cooperation, Icelandair now feeds connecting passengers through six major US airports:

• Baltimore (BWI)

• Denver (DEN)

• Nashville (BNA)

• Orlando (MCO)

• Pittsburgh (PIT)

• Raleigh-Durham (RDU)

These airports become virtual Icelandair gateways, even though the airline may not operate its own aircraft to all of them year-round. The partnership allows passengers to book seamless itineraries combining Southwest domestic flights with Icelandair’s transatlantic services, significantly widening customer reach with minimal new operating cost.

2. New & Returning Destinations Strengthening the Network

Icelandair has also launched or reinstated service to several destinations:

Nashville, Tennessee

Beginning in summer 2025, Icelandair operates four weekly flights, capitalizing on the city’s rapidly growing tourism and business presence.

Miami, Florida

Using the Airbus A321LR, Icelandair brings back a popular seasonal route, appealing to leisure passengers looking for warm-weather escapes and onward Europe connections.

Partnership-accessed Cities

Through the Southwest partnership, Icelandair reaches additional markets — not as direct flights, but as practical entry points for onward connections.

Together, these additions bring the combined North American network to a total service footprint of up to 23 airports.

Why the Number Varies: Understanding the “23 Airports” Claim

Different aviation outlets have reported different figures:

• SimpleFlying: 19 airports served directly by Icelandair in 2025.

  
  

• Travel & Tour World: 19 North American destinations with record-level KEF operations.

  
  

• Icelandair’s annual report: Mentions over 20 North American gateways, counting strategic partnerships

  
  

• ICAO 2025 documentation: Notes Icelandair has “23 gateways” across Europe, the US, and Canada.

In practical terms:

✔ Icelandair directly serves around 19 airports

✔ Icelandair reaches a total of 23 airports when including partner-fed gateways

✔ Marketing material often uses the higher number to reflect global connectivity

This means that “23 US & Canadian airports” is accurate when referring to Icelandair’s complete accessible network, not just routes operated by its aircraft.

How Icelandair Is Executing This Strategy

Partner Feed Instead of Risky Direct Launches

Rather than launching dozens of new direct routes — a costly and risky proposition — Icelandair is using a clever hybrid approach:

• Operate direct flights to key destinations.

  
  

• Use partner airlines (especially Southwest) to feed passengers from additional cities.

  
  

• Promote these as part of Icelandair’s accessible North American network.

This model allows the airline to grow continent-wide presence while maintaining operational efficiency.

Fleet Planning: A321LR Taking Center Stage

To support its transatlantic routes, Icelandair is gradually replacing its Boeing 757 fleet with modern Airbus A321LR aircraft.

Benefits include:

• Greater fuel efficiency

  
  

• Longer range suitable for US East Coast and Midwest markets

  
  

• Lower operating costs

  
  

• Higher passenger comfort and cargo flexibility

These aircraft give Icelandair the flexibility to:

✔ Launch routes to mid-sized US/Canadian cities

✔ Maintain year-round services on thinner routes

✔ Increase frequency where demand spikes seasonally

Impact on Passengers, Icelandair, and the Broader Market

Benefits for Travelers

• More North American options to reach Europe with convenient timings

  
  

• Smooth one-ticket connections through the Southwest partnership

  
  

• Iceland stopover opportunities, a long-standing Icelandair perk

  
  

• Competitive pricing versus major US carriers and European giants

Benefits for Icelandair

• Higher transatlantic revenue

  
  

• Lower route-launch risk due to partner feed

  
  

• Stronger global brand positioning

  
  

• Improved fleet efficiency

Industry Implications

• US and Canadian flyers gain new connecting alternatives

  
  

• Competing airlines may react with expanded frequencies

  
  

• Iceland’s role as a transatlantic hub continues to grow

Risks & Challenges Icelandair Must Navigate

1. Demand volatility — new routes may face seasonal inconsistency.

   
   

2. Operational coordination — partnerships require precise scheduling.

   
   

3. Fleet transition timing — delays could impact expansion plans.

   
   

4. Regulatory issues — bilateral rights might restrict route changes.

   
   

5. Competitive pressure — major carriers may defend key markets aggressively.

What To Watch Next

• Whether Icelandair adds additional US Midwest or Canadian routes

  
  

• The number of A321LR aircraft delivered in 2025–2026

  
  

• New codeshare or interline partnerships

  
  

• Passenger uptake of Icelandair’s stopover program

  
  

• Long-term success of the Southwest partnership feed model