Icelandair and Southwest Airlines announced a significant partnership in September, marking the first interline agreement for Southwest. This collaboration represents a strategic shift for Southwest Airlines, expanding its service offerings beyond its traditional model. The partnership is part of Southwest's "Southwest. Even Better." transformation plan, which includes premium seating, assigned seating, international airline partnerships, vacation packages, and red-eye flights.
Icelandair has been leveraging its geographical position to connect North American travelers to Europe with stopovers in Iceland. Over the past year, it has formed codeshare agreements with several airlines including Air Greenland, Emirates, TAP Air Portugal, Atlantic Airways, and now Southwest Airlines. These partnerships allow Icelandair more flexibility as it is not part of any major airline alliance.
Baltimore (BWI) was chosen as the initial gateway for this new partnership. Passengers on Icelandair's daily Boeing 737 MAX flight can connect to onward services offered by Southwest Airlines. Although final confirmation is pending as both carriers finalize their agreement details.