Icelandair has announced the cessation of flights to ten US airports, marking a significant reduction in its American operations. This decision includes the discontinuation of services to Detroit, effective January 2026. The airline’s exit from Detroit represents its first withdrawal from a US airport since 2020.
Icelandair has maintained a robust presence in the US market, with its Keflavik hub serving as a vital connection point for international travelers. According to the US Department of Transportation, the airline transported nearly 1.55 million passengers between the US and Iceland in 2024, marking its most successful year to date. This growing traffic reflects the increasing popularity of Iceland as a tourist destination, attracting visitors eager to explore both the island nation and wider Europe.
As the airline withdraws from Detroit, it continues to expand its network elsewhere. Notably, Nashville joined its flight map in 2025, and Miami International Airport is set to be added this winter. Icelandair had initially planned to operate up to five weekly flights using a Boeing 737 MAX to Detroit, competing against Delta Air Lines, which operates daily flights on the route.
Historical Context of Icelandair’s US Operations
Since its inception, Icelandair has experienced varied success in the US market. Between 1990 and 2024, the airline carried a total of 19.74 million passengers to and from the United States. The peak year, 2024, saw a load factor of 83.60% for its flights, highlighting a strong demand for transatlantic travel.
Icelandair’s growth trajectory has been influenced by various factors, including the competition posed by the now-defunct WOW Air. During its peak, Icelandair operated flights to 18 US airports in 2018, a year that coincided with WOW Air’s expansion into the same markets. While WOW Air’s aggressive route strategy initially boosted passenger numbers, it also created unsustainable competition, ultimately leading to its collapse.
The airline’s departure from Detroit is part of a broader trend, as Icelandair has withdrawn from several US airports over the years. According to the US DOT, Icelandair has ceased passenger flights to ten US airports since 1990. Notable locations include Anchorage, Cleveland, and Dallas/Fort Worth, where Icelandair previously operated during periods of high demand.
Impact of Market Dynamics on Icelandair
The competitive landscape in the airline industry is always shifting. The rise and fall of carriers like WOW Air have had lasting impacts. Icelandair’s experience during the late 2010s, particularly in 2018, illustrates the volatility of transatlantic routes. That year, Icelandair carried 1.39 million passengers, but its load factor fell to 78.90%, the lowest in over a decade. The market dynamics shifted rapidly as WOW Air entered and expanded aggressively, forcing Icelandair to reassess its strategy.
The recent decision to cut flights may prompt speculation about the future of the Detroit-Keflavik route. With Icelandair’s exit, attention now turns to Delta Air Lines to see if it will continue its operations or reconsider its presence in the market.
As the airline landscape evolves, the implications for travelers and the tourism industry remain significant. Icelandair’s adjustments reflect broader trends in the aviation sector, where strategic shifts are often necessary to navigate challenges and seize opportunities. For now, the airline continues to focus on its established routes while adapting to changing market conditions.