Airlines Strategy
Southwest Airlines Partners with Icelandair for Global Travel Expansion
Southwest Airlines, a dominant player in the U.S. domestic market, has taken a significant step toward expanding its global reach with its new partnership with Icelandair. This interline agreement, which went live in mid-February 2025, allows passengers to book seamless connections between Southwest’s domestic flights and Icelandair’s international network. This partnership is a strategic move for Southwest, which has historically focused on domestic travel, and for Icelandair, which boasts a strong presence in transatlantic and European routes.
The partnership is currently limited to connections through Baltimore/Washington International Thurgood Marshall Airport (BWI), but it’s set to expand to other hubs like Denver International Airport (DEN) and Nashville International Airport (BNA) in the near future. While the initial rollout is somewhat restricted, the collaboration promises to grow significantly, offering travelers more flexibility and convenience. This is particularly exciting for Southwest’s customers, who will soon have access to Icelandair’s extensive European network, including the option for stopovers in Iceland.
This partnership is not just a win for the airlines but also for travelers. It opens up new possibilities for those looking to explore Europe while leveraging Southwest’s affordable domestic flights. As the partnership evolves, it will also integrate Southwest’s Rapid Rewards program, allowing passengers to earn and redeem points on these international itineraries starting in 2026. This marks a pivotal moment in Southwest’s journey toward becoming a more globally connected airline.
The Southwest-Icelandair partnership operates as an interline agreement, meaning passengers can book a single itinerary that includes flights on both airlines. Currently, bookings are available through Icelandair’s website and select third-party platforms. For example, a traveler can start their journey on a Southwest flight from Dallas Love Field (DAL) to BWI and then connect to an Icelandair flight to Keflavik Airport (KEF) in Reykjavik. From there, they can continue to various European destinations, all on one ticket.
While the process is straightforward, there are some limitations. For now, passengers cannot book these itineraries directly through Southwest’s website, and Rapid Rewards points cannot be earned or redeemed on these flights. However, this is expected to change in 2026 when Southwest introduces assigned seating and integrates its booking system with Icelandair’s. This will make the process more seamless and rewarding for Southwest’s loyal customers.
One of the standout features of this partnership is the option for stopovers in Iceland. Passengers can choose to spend up to seven days in Reykjavik before continuing to their final destination in Europe. This adds a unique travel experience, allowing travelers to explore Iceland’s stunning landscapes and culture without the need for additional bookings or expenses.
“This is an important milestone in our plan to expand how and where our customers can travel,” said Ryan Green, Southwest’s Executive Vice President.
While the partnership is currently limited to BWI, it’s set to expand to other major Southwest hubs, including Denver and Nashville. This will provide more options for travelers across the U.S. to connect to Icelandair’s network. The addition of these gateways will make the partnership more accessible and convenient for a broader audience, further solidifying its value. Another significant development on the horizon is the integration of Southwest’s Rapid Rewards program. Starting in 2026, passengers will be able to earn and redeem points on these international itineraries. This is a major win for Southwest’s frequent flyers, who will now have more opportunities to maximize their rewards. The ability to use Rapid Rewards points for flights to Europe and beyond will enhance the program’s utility and appeal.
Southwest has also hinted at announcing a second international airline partner in the near future. This suggests that the airline is committed to expanding its global footprint and offering more options for its customers. As the aviation industry continues to evolve, such partnerships will play a crucial role in helping airlines stay competitive and meet the growing demand for international travel.
Southwest Airlines’ partnership with Icelandair marks a significant milestone in the airline’s efforts to expand its global reach. While the initial rollout is limited, the collaboration promises to grow, offering travelers more flexibility, convenience, and opportunities to explore new destinations. The ability to book seamless connections, enjoy stopovers in Iceland, and eventually earn Rapid Rewards points makes this partnership a game-changer for Southwest’s customers.
As the partnership evolves, it will open up new possibilities for travelers and strengthen Southwest’s position in the global aviation market. With plans to expand to additional gateways and integrate its frequent flyer program, Southwest is poised to become a more formidable player in international travel. This partnership is a testament to the power of collaboration in the aviation industry and a promising sign of what’s to come for travelers worldwide.
Question: Can I book Southwest-Icelandair itineraries through Southwest’s website? Question: Can I earn Rapid Rewards points on these flights? Question: Can I include a stopover in Iceland? Sources: The Points Guy, One Mile at a Time, Simple FlyingSouthwest Airlines’ New Partnership with Icelandair: A Game-Changer for Travelers
How the Partnership Works
Future Expansion and Benefits
Conclusion
FAQ
Answer: Not yet. Currently, bookings are available through Icelandair’s website and some third-party platforms. Southwest’s website will be integrated into the booking process in 2026.
Answer: Not at the moment. The ability to earn and redeem Rapid Rewards points on these itineraries is expected to be added in 2026.
Answer: Yes, passengers can choose to spend up to seven days in Iceland as part of their itinerary.