DALLAS- Southwest Airlines (WN) is reportedly planning its first transatlantic route with potential service to Reykjavík, Iceland (KEF) as early as next year.
The airline may use its upcoming partnership with Icelandair (FI) to offer access to additional European destinations, leveraging Iceland as a strategic entry point into Europe.
Photo: IcelandairSouthwest Airlines First Transatlantic Flight
Southwest Airlines (WN), a historically domestic US carrier, is planning its first flight to transatlantic travel with a focus on Reykjavik, Iceland (KEF).
According to View From the Wing, the airline has secured a codeshare agreement with Icelandair, marking its first step into long-haul markets.
This partnership allows Southwest to sell tickets to Iceland and onward European destinations served by Icelandair, leveraging Iceland’s strategic position as a transatlantic hub.
The Boeing 737 MAX, already in Southwest’s domestic fleet, can efficiently operate the route from strongholds like Baltimore (BWI) to Reykjavik (KEF), eliminating the need for new aircraft.
The decision to target Iceland aligns with its strong seasonal appeal, particularly during summer, and its role as a European connection hub.
A TD Cowen analysis highlights Reykjavik’s attractiveness for Southwest’s Rapid Rewards credit card holders, who could redeem points for both Iceland and connecting flights.
This mirrors Southwest’s successful Hawaii expansion, driven by credit card incentives. Enilria reports suggest an agreement with Southwest’s pilots enables this codeshare, paving the way for a 2025 launch.
Photo: Jeffrey S.S | PexelsStrategies and Challenges
Southwest’s transatlantic ambition arrives amid a period of reputational strain. The airline recently introduced new ancillary fees and reduced elite traveler benefits, drawing criticism for shifting away from its long-standing customer-friendly policies.
With no first-class cabins, in-flight meals, or seatback entertainment, and only USB ports and unreliable Wi-Fi available, Southwest’s in-flight product lags behind other international carriers.
Despite these drawbacks, Iceland’s service could allow Southwest to pivot the narrative. A TD Cowen report supports the Reykjavík speculation, highlighting the potential value for Southwest’s co-branded credit card holders.
Similar to the strategic push into Hawaii, Iceland may serve as a destination that aligns with loyalty and rewards objectives, offering Rapid Rewards members an international option while preserving operational efficiency.
However, this move also carries challenges. The European leisure market is highly seasonal and intensely competitive.
Southwest would be banking on low fares to attract passengers, but added costs from interlining, baggage handling, and customer service partnerships could erode margins.
Without a premium product offering, it remains to be seen whether passengers would opt to transit through Iceland over existing nonstop options from larger carriers.
Photo: Aero Icarus | FlickrFuture Outlook
The absence of traditional international amenities like lounges, full meal services, or tiered seating places Southwest at a distinct disadvantage in the transatlantic market.
The airline has positioned itself as a low-cost, no-frills option, but that model has seen limitations on long-haul routes where passenger comfort and service offerings become critical differentiators.
Moreover, while interlining with Icelandair presents a major opportunity for expanded connectivity, it also introduces complexities that Southwest has historically avoided.
Baggage handling, scheduling alignment, and revenue sharing with a foreign partner require operational changes that may affect the airline’s cost structure.
Still, Iceland represents a manageable first step. It provides Southwest a way to enter Europe without acquiring new aircraft types or overhauling its business model.
If successful, the model could expand to other destinations via similar partnerships, positioning Southwest for cautious international growth without undermining its core identity.
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Southwest Airlines Fleet and Route Analysis 2025
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