Icelandair ends Detroit service after record-breaking year for US passenger traffic

The period between 2017 and 2019 saw significant growth for Icelandair’s US operations due in part to increased competition from WOW Air. During this time, both airlines rapidly expanded their networks before WOW Air ceased operations. In 2018 alone, Icelandair served 18 US airports while WOW Air reached 15 destinations.

Competition also played a role in other markets such as Dallas/Fort Worth. In May 2018, WOW Air launched flights there with an Airbus A330-300; Icelandair followed later that month with Boeing 757-200 service. American Airlines joined soon after with daily flights from its main hub using the same aircraft type. All three carriers eventually exited the route within about a year.

While new destinations like Nashville have been added recently and Miami International Airport is set to join Icelandair’s network in winter 2025/26, some routes have proven unsustainable amid changing demand and industry dynamics.

"PLAY materialized from WOW's ashes. But while WOW took a highly aggressive approach to its network, PLAY intentionally did not. It wanted to implement the lessons. Despite this, its sole remaining US route will end in October."

As for future developments on routes like Detroit-Keflavik—currently also operated by Delta Air Lines—it remains uncertain whether other carriers will continue or discontinue similar services following Icelandair’s exit.