Icelandair has announced the suspension of flights to ten US airports, marking a significant shift in its transatlantic operations. The airline’s exit from Detroit, effective January 2026, is particularly noteworthy as it represents the first removal of a US airport from Icelandair’s network since 2020. This decision comes despite the airline’s strong performance in 2024, when it transported nearly 1.55 million passengers to and from the United States, according to the US Department of Transportation.
The United States has remained a critical market for Icelandair, serving as its top destination from the Keflavik hub. Notably, the airline is set to expand its network with the addition of Nashville in 2025 and Miami International Airport in the upcoming winter season. The decision to cease operations from Detroit follows an aggressive competitive landscape where Icelandair had planned a service of up to five flights per week using Boeing 737 MAX aircraft during the summer months, competing directly with Delta Air Lines, which operates a daily flight using a 757-200.
Icelandair’s traffic history is marked by fluctuations, particularly influenced by the rise and fall of competing airlines. Between 1990 and 2024, it carried approximately 19.74 million passengers to and from the US. The peak came in 2024, achieving an impressive 83.60% load factor. Before this, the airline saw its traffic significantly bolstered between 2017 and 2019, coinciding with the rapid growth of the now-defunct WOW Air. In 2018, for instance, Icelandair transported 1.39 million passengers, although it experienced a drop in load factor to 78.90%, marking its lowest rate in over a decade.
The airline has previously served flights to ten US airports, including Kansas City, which it briefly operated from 2018 to 2019. Despite the potential of the Kansas City market—estimated at 230,000 passengers in 2024—its decision to exit stemmed from strategic realignments made during its peak growth periods. In 2018, Icelandair had managed to operate flights to 18 US airports, while WOW Air served 15.
Impact of Icelandair’s Exit on US Operations
The cessation of flights from Detroit raises questions about the future of the airline’s remaining services and the competitive dynamics in the transatlantic market. The route between Detroit and Keflavik was a focal point for Icelandair, allowing connections to wider Europe and catering to the growing demand for travel to Iceland. Given the competitive nature of the airline industry and the direct rivalry with Delta Air Lines, it remains to be seen whether Delta will also reconsider its operations on this route.
Icelandair’s history of service to US airports has been characterized by both expansion and contraction. A comprehensive review by the US Department of Transportation indicates that the airline has pulled out of several markets since its inception, with Detroit now joining that list. The airline’s decision to withdraw from these routes, particularly during a period of burgeoning tourism to Iceland, highlights the complexities of maintaining profitability while competing against larger carriers.
The rise of PLAY, a new airline that emerged from the ashes of WOW Air, has also contributed to the shifting landscape. While PLAY’s approach has been more cautious compared to the aggressive expansion of WOW, its impending exit from the US market underscores the challenges facing low-cost carriers in sustaining transatlantic routes.
As the airline industry continues to evolve, Icelandair’s decision to cease flights from Detroit serves as a reminder of the volatile nature of air travel. With the ongoing changes in service patterns and the competitive landscape, observers will be closely monitoring how these developments impact the broader market dynamics between the US and Europe in the coming years.
