Southwest Airlines Likely To Start Transatlantic Flights—Eyes Iceland As Europe Gateway

Southwest Airlines is expected by many to announce its first flight to Europe, launching Iceland service next year.

After destroying their brand in an epic self-own, introducing unannounced new nickel and dime charges they’d said they wouldn’t, and imposing punitive changes on elite frequent flyers, the airline would love nothing more than to change the narrative. Flying to Europe would help do this.

However, Southwest Airlines has traditionally been a domestic airline with a little bit of short-haul international to places like Mexico and the Caribbean. They fly one Boeing 737s, which limits their reach. And they haven’t had other airlines as partners to provide their customers with onward connections in Europe, South American or Asia. That’s made flying long haul a complete non-starter. But there’s one obvious place they can go.

  • Southwest Airlines has started to partner with other airlines. Their first partner is Icelandair. (They will also interline with China Airlines.)

  • The Boeing 737 MAX can make it to Iceland from Southwest strongholds like Baltimore, no need for a new aircraft type.

  • Iceland is a strong seasonal (summer) destination but also an efficient connection point for the rest of Europe.

Enilria predicted that Southwest Airlines would announce Reykjavik service next year, reporting on word that the airline had reached an agreement with its pilots that would allow codesharing with Icelandair. They would be able to sell tickets to their customers wishing to fly not just to Iceland but to points beyond where Icelandair flies.

A TD Cowen report on Southwest now expects Reykjavik as well, suggesting that it would be attractive to credit card customers (presumably both as a destination and as a way to connect to Europe using Rapid Rewards points). Much of the impetus for Southwest’s going big into Hawaii was related to the credit card. It’s also within the range supported by their existing aircraft.

At the same time, Southwest faces the same challenges they’ve created for themselves domestically. No longer differentiated as a product by free checked bags or travel credits that don’t expire, they’ve become just like all the other airlines but worse. They offer no first class, no lounges, or seat back entertainment. Their wifi is barely functional and their seats offer only USB power. The planes lack galleys capable of a proper meal service.

So why would a passenger choose Southwest for transatlantic travel? Why would they connect in Iceland rather than flying non-stop from a major U.S. city? Southwest would be entering the highly seasonal market with an inferior product that could only with the lowest price, at the same time they face higher costs that result from partnerships and interlining baggage. That hardly looks like the kind of growth prospects that should excite customers or investors.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Hmmm…..if their failure to meet expectations in Hawaii is any indication this sounds like it may be another example of their business model has it’s limitations.

  2. 1. Why, why would ANYONE fly WN to Europe. What is the value proposition other than “we’re doing it too?” At least B6 brought the elevated Mint product.

    2. I feel horrible for Iceland. Poor island is already over-touristed. flooding it with more people is going to cause issues.

  3. Interesting approach, but curious to see the code share availability for SWA passengers connecting at KEF as Icelandair already enjoys strong load factors of ~85%…assuming they’re factoring in added capacity from the forthcoming deliveries of the A321-XLRs that – ironically – Southwest should have leveraged into orders during the MAX debacle.

  4. Not only Iceland, but London is flooded with tourists!

    One advantage of flying Southwest through Keflavik is the possibility of a stopover and adding another place to one’s European vacation. Another advantage is that one would arrive in Continental Europe a little later, perhaps in the afternoon. The hotel will be ready. It’s torture to arrive in London at 7 am and the hotel is not ready for hours.

  5. I doubt this will be added capacity in the US-Icelandic market. Probably a metal swap with Icelandair from BWI and BNA.

  6. I can’t imagine they would start international service without upgrading the current cabin configuration. Maybe they will surprise us by offering a cheap alternative that will be better than what is currently offered? For me that would have to include meals (including special meals) and the option to pay for lie flat beds at an affordable price, or premium seats with acceptable leg room for a six footer, and a decent recline.

  7. It would be nice if the author he is writing on, but clearly he does not. Definitely a hack piece of fake news

  8. “Iceland is beautiful?” A major corporate transaction a few years ago, for a reason I never understood an exec on my side wanted Title to a half-million, something absurd like that, acres of land. “No problem, it’s not worth anything.” Except for a couple small cities (by US standards) and the now-polluted Blue Lagoon, it’s volcanic rock covered by snow.

  9. Comment ? I think the author, Gary, hit all the high points !! And the ‘comments’ reiterated them.
    Nuff said.

  10. How is SWA going to fly KEF – Europe? They certainly don’t have that kind of route authority. Fly to KEF, sure, then let Iceland Air take them the rest of the way. The MAX can make it to Ireland and the UK, so perhaps that’s in the cards as well.

  11. Why would anyone fly WN out of BWI to Kef when Iceland Air flies out the there? Especially if you’re connecting to Europe. I’m picking out my funeral outfit for Southwest’s demise. They should have stuck with their original business model.

  12. Hmmmm….. It’s not even Halloween, but this is scary !
    Flying trans-Atlantic (even a ‘short hop’) on a haunted/cursed 737MAX …
    what could possible go wrong ?
    Maybe it would appeal to ‘thrill seekers’ & gamblers on whether or not they’ll ever reach their destination !
    But, hell, the flying time BWI-KEF is 5.5 -6 hours practically identical to West Coast USA to Hawaii over that lonely Pacific stretch so it’s happening already ….
    “If the fare is low enough, they will fly !” to paraphrase a bit …,

  13. The last thing anyone needs is southwest ferrying the subhumans that fly their airline to europe.

  14. Recently flew IcelandAir to Manchester thru KEF. Pretty much exactly like flying SWA but to Europe. Seats that are acceptable for 2.5 hours to MCO are not acceptable (to me obvs) for transcontinental or longer flights.

    Fun fact, on IcelandAir, if you are sitting in the exit row, you cannot have anything at by your feet during takeoff and landing. Super annoying.

  15. Omar is a wise one ! Speaks words of truth knowledge and that’s power.

  16. IcelandAir & Play have Keflavík Airport pretty much tied up as well the American trunk line and Euro ULLC carriers.
    Southwest has nothing much to offer in this situation.
    I fell they are chasing their tail.

    By the way, Iceland is a very pretty county to visit, I was there last year. I suggest you visit soon, for I feel it’s falling into the tourist trap syndrome.

  17. How are load factors on Icelandair’s daytime flight out of Boston? I’ve thought about using that flight with an overnight layover in KEF and an onward connection in the morning as an option for getting to Europe without a redeye. Even in J, the overnight flights are too short to sleep more than a few hours going to Western Europe, and the handful of daytime flights dwindled further post-pandemic.

    Most of the US-KEF flights are miserably brief redeyes. WN could differentiate by offering daytime flights

  18. I believe US carriers have 5th freedom rights within Europe. Would SW consider flying beyond Reycovik to LHR, CDG, etc?

  19. They’d have to offer Play fares at WN’s cost structure or it’s full of rapid rewards redemptions, they don’t even have a product to compete with anyone else.

  20. What all of the commentators on this thread seem to be missing is that private equity guys are geniuses. They’ve got this. In a year or two they’ll be running circles around the other legacy carriers

  21. Recycling Braniff (1,2,3), Air Florida and People Express’ business plan. I suppose Elliott thinks they were good plans just, executed by the wrong management team. The unconstrained hubris of an active investment firm that thinks one plan fits all.

  22. LMAO – Why would anyone want to fly SWA over an ocean to a distant land???? They don’t even serve peanuts anymore!!! Uncomfortable seats and no wifi??? Hard pass. They’re not gonna make it past 2026. I live in San Diego, where they’re making a whole new terminal mostly to accommodate SWA (the current Terminal 1 is like a bus station – horrible). I figure by the time the terminal is completed Elliott et al will be ready to sell off those gate slots as they strip SWA for parts.

  23. This ain’t happenin’… @One Trippe is right. Hubris. And if it does happen, yes, @seatac315, I would expect it to be no better than ULCCs like Play (or it’s prior iteration, Wow). Just awful.

    @Tor — Ah, yes, Icelandair, you get a bottle of water… and, that’s it. For those +6 hour flights, it’s near torture. Someone should get The Hague involved. Yikes.

    @Omar @OMGweregonnafly — Wrong. jetBlue’s Mint on their transatlantic flights is exceptional, better than many US and European carriers; and, it doesn’t route through KEF, so even better!

  24. SW should have kept one free checked bag. The best thing about the Maui Monk pretzels is the bag art.

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