Icelandair has unveiled its passenger load factors for various routes to the United States, revealing significant challenges for certain services. Over the twelve months leading to September 2025, the airline transported approximately 1.6 million round-trip passengers to and from the US, marking a 7% increase compared to the previous year. This growth outpaced the overall Europe-US market, largely driven by the introduction of flights to Nashville in April 2025 and the withdrawal of competitor PLAY in September 2025.
The airline currently operates 15 passenger routes to the US, with a new route to Miami commencing in October 2025. Notably, around 31% of Icelandair’s total passengers traveled to or from the US, underscoring the importance of this market to the airline’s overall operations. Notably, the average load factor across all routes was 81.2%, suggesting that while some routes performed well, others struggled to attract passengers.
Routes with the Lowest Load Factors
The airline’s Keflavik to Detroit route exhibited the lowest load factor at 67.0%. This service began in May 2023, following a gap left by the now-defunct WOW Air. Initially, flights were limited to summer months but expanded in 2024. However, in early 2025, only two round-trip flights operated in January, with no services in February and a mere seven in March. In contrast, Delta Air Lines, Icelandair’s primary competitor on this route, maintained a daily service with an average load factor of 78.1%.
Icelandair’s service to Detroit operated using the Boeing 737 MAX 8, its smallest aircraft, with an estimated 73% of passengers connecting to other destinations via Keflavik, particularly to major cities such as London, Stockholm, and Dublin. However, the airline decided to discontinue this route on January 3, 2026, primarily due to the low demand.
Performance of Other US Routes
The route from Keflavik to Pittsburgh also reflected a declining load factor. Launched in May 2024, it saw a promising 74.4% seat occupancy in its first year. However, data from April to September 2025 indicated a drop to 69.2%, which is concerning for a relatively new service. Despite the drop, the route continues to operate four times a week, catering to seasonal demand.
The airline’s overall strategy emphasizes the significance of connecting flights, as approximately 70% of passengers traveling to or from the US were found to be connecting through Keflavik. This connectivity is crucial for Icelandair, as a robust US network enhances its European offerings, making them more competitive.
While recent performance metrics showcase challenges, Icelandair’s ability to adapt and manage its routes in response to market demands remains critical. The airline’s future performance will depend on how effectively it adjusts its services to increase load factors on these key routes, ensuring sustainable growth in the transatlantic market.
