Next month, Southwest Airlines will embark on its inaugural international partnership and will expand its selection of international “gateways” to include Denver and Nashville, the airline has announced.
Baltimore, which has already been named as the first gateway, served as the backdrop for the signing of an interline agreement with Icelandair during an event in Washington on Wednesday.
Flying Frugal was present as executives solidified the collaboration between the two airlines, enabling Southwest’s Rapid Rewards members to eventually redeem points for flights to Iceland, Europe, and beyond.
This ceremony, hosted at the residence of Iceland’s ambassador to the U.S., signifies what Southwest views as a foundational step in a series of significant transformations outlined by the Dallas-based airline last year. A major aspect of this evolution will eventually include the introduction of assigned and extra legroom seating on Southwest’s Boeing 737s.
However, the immediate focus is on the alliance with Icelandair.
“Interline partnerships are quite typical within the airline sector, but this is our first, making it especially exciting for us,” stated Southwest Chief Operating Officer Andrew Watterson just prior to the official partnership announcement.
A Soft Launch for the New Partnership
As reported by Flying Frugal in September, the partnership between Southwest and Icelandair will commence with limited offerings initially.
Beginning in February, travelers can book itineraries featuring seamless connections through Icelandair’s website.
Initially, the partnership will focus on one gateway in the U.S.: Southwest’s Baltimore/Washington International Thurgood Marshall Airport (BWI).
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However, both airlines plan to extend this agreement to Denver International Airport (DEN) and Nashville International Airport (BNA) in the near future, as revealed by Southwest executives on Wednesday.
“We will continue to progress in phases,” stated Ryan Green, the Southwest executive overseeing the airline’s significant changes announced last year, during an interview with Flying Frugal on Wednesday.
Expanded Collaboration on the Horizon
Anticipate an expansion of the collaboration between the two airlines in 2026 after Southwest rolls out assigned seating; the adjustment of their technology systems to support the partnership during its current open seating format wasn’t practical, according to Green.
Once the assigned seating system is implemented, Southwest plans to start selling tickets for Icelandair flights through its booking channels. Customers will then be able to book travel to Keflavik Airport (KEF) and popular European destinations via Southwest’s website.
“We will be introducing additional components … such as earning and redeeming points with Rapid Rewards, enhancing loyalty, and building on our offerings,” Green mentioned. “We will steadily expand our initiatives.”
An Eventful Launch
The ceremonial unveiling of this collaboration in Washington, D.C., was a grand affair.
Leaders from both Southwest and Icelandair exchanged tokens of goodwill, with Icelandair presenting a piece of lava rock from a recent eruption in Iceland, while Southwest offered a decorative rendition of its iconic logo.
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SEAN CUDAHY/Flying Frugal
The event culminated with both parties raising glasses to toast (“Skál!”) with Brennivin, Iceland’s traditional spirit.
“This partnership will be fantastic,” remarked Svanhildur Hólm Valsdóttir, Iceland’s ambassador to the U.S., during the celebrations.
Expanding Global Reach
Southwest plans to reveal at least one more international airline partner in 2025, as reiterated by executives on Wednesday. The airline aims to broaden its partnerships, thus offering Rapid Rewards members more travel options.
“We are in talks with both additional transatlantic and transpacific airlines,” Green noted. “Ultimately, this initiative aims to provide customers with more choices and expand the Southwest Airlines brand beyond the limitations of the 737.”
Not too long ago, these developments would have been unimaginable.
In recent years, Southwest has invested heavily in modernizing its aging technical infrastructure—efforts aimed not only at preventing operational meltdowns akin to the holiday disruptions in 2022 but also at facilitating future adaptations, including the addition of late-night flights next month. This also sets the stage for Southwest’s most ambitious international collaboration yet—a partnership once deemed improbable.
“This new capability is what transformation is truly about,” stated Watterson. “We will continue to integrate this into our regular operations, adding more gateways and partners in the process.”
Stay tuned …
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