Icelandair has revealed that its US routes are experiencing significant challenges, particularly in terms of passenger load factors. In the 12 months leading up to September 2025, the airline transported approximately 1.6 million round-trip passengers to and from the United States, marking a 7% increase compared to the previous year. This growth outpaced the overall US-Europe market, largely due to the introduction of flights to Nashville in April 2025 and the exit of competitor PLAY from the market in September 2025.
Despite these positive trends, not all of Icelandair’s routes are performing equally well. According to data from Cirium Diio, the airline operates 15 US passenger routes, with an additional route to Miami that commenced in October 2025. The US market represents a substantial part of Icelandair’s operations, accounting for around 31% of its total passenger traffic.
Load Factors Reveal Route Weakness
Icelandair’s average load factor across its US routes was 81.2%, but several specific routes reported considerably lower performance. The route from Keflavik to Detroit had the lowest load factor at just 67.0%, leading to its termination in January 2026. This route, which began in May 2023, struggled to compete with Delta’s more established service, which maintained a higher load factor of 78.1% despite operating seasonally.
The Detroit service utilized a Boeing 737 MAX 8, the airline’s smallest aircraft, and was primarily used for connecting flights to other destinations in Europe. Approximately 73% of passengers on this route connected through Keflavik to cities such as London Heathrow and Paris Charles de Gaulle.
In contrast, the route from Keflavik to Pittsburgh, which Icelandair launched in May 2024, also faced challenges but showed slightly better performance. Initially, it achieved a load factor of 74.4% in its first year, but this dropped to 69.2% from April to September 2025. Seasonal operations on this route are expected to continue, with flights scheduled four times a week.
Impact of Competitive Landscape
The competitive environment significantly impacts Icelandair’s US routes. Delta, Icelandair’s primary competitor, continues to operate its own flights during the summer months, benefiting from higher fares and load factors. While Icelandair’s presence in the US market has allowed it to connect passengers to Europe, its performance on certain routes suggests that it faces difficulties in maintaining profitability.
Icelandair’s reliance on connecting traffic is evident, with a substantial portion of its US passengers using Keflavik as a hub. The airline’s ability to adapt and improve load factors on its underperforming routes will be crucial as it navigates this competitive landscape.
Overall, while Icelandair has seen growth in passenger numbers, the challenges on its US routes highlight the complexities of the aviation market. The airline’s future strategy will be vital in determining its success in maintaining a robust presence in the US travel sector.