Southwest opens two new international gateways ahead of Icelandair partnership
Southwest Airlines will launch its first international airline partnership next month, and expand its short list of international “gateways” to Denver and Nashville, the airline announced.
Baltimore had already been announced as its first such gateway, which set the stage for Southwest to officially ink an interline agreement with Icelandair at a ceremony in nearby Washington on Wednesday.
TPG was on hand as executives signed a pact cementing the tie-up between the two carriers, one that will eventually allow Southwest loyalists to redeem Rapid Rewards points on flights to Iceland, Europe and beyond.
SEAN CUDAHY/THE POINTS GUY
The ceremony, held inside the residence of Iceland’s ambassador to the U.S., marked what Southwest is framing as the first tangible step in a series of massive changes the Dallas-based carrier outlined last year. That transformation will eventually bring the first assigned and extra legroom seats to Southwest’s Boeing 737s.
Up first, though, is this joining-of-forces with Icelandair.
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“Interline partnerships are very common in the airline industry. But it’s our first one, so it’s very exciting for us,” Southwest chief operating officer Andrew Watterson said moments before the two carriers made their partnership official.
A softer launch to the partnership
As TPG reported in September, the Southwest-Icelandair tie-up will be more limited at first.
Starting in February, travelers will be able to book itineraries featuring seamless connections between the two carriers via Icelandair’s website.
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From the outset, the partnership will concentrate on just one gateway on the U.S. side: Southwest’s Baltimore/Washington International Thurgood Marshall Airport (BWI) base.
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A Southwest Airlines jet at Baltimore/Washington International Thurgood Marshall Airport. SEAN CUDAHY/THE POINTS GUY
However, the carriers plan to soon expand the setup to Denver International Airport (DEN) and Nashville International Airport (BNA), Southwest executives revealed Wednesday.
“We’ll continue to do this in phases,” Ryan Green, Southwest’s executive charged with overseeing the airline’s wholesale changes announced last year, told TPG Wednesday.
Deeper ties begin next year
Expect the two airlines’ ties to grow in 2026, after Southwest launches assigned seats; the logistics of evolving its tech systems to facilitate a partnership in its open seating era — and again after shifting to assigned seats — didn’t make sense, Green said.
The cabin of a Southwest Airlines Boeing 737 MAX 8 aircraft. SEAN CUDAHY/THE POSTS GUY
Once the assigned seating program is in place, Southwest will begin selling Icelandair tickets through its online booking channels. At that point, customers would be able to book flights to Keflavik Airport (KEF) and top European destinations through Southwest’s website.
“We’ll add components … like earn and [redeem] with Rapid Rewards, and loyalty,” Green added. “And we’ll continue to add layers.” “
Pomp and circumstance
The ceremonial launch of this partnership in D.C. was full of pomp and circumstance.
Southwest and Icelandair leaders exchanged gifts. Reykjavik’s carrier presented a piece of Icelandic molten lava rock. Then, the leaders of both carriers raised their glasses in toast (“Skal! “). of Brennivin, Iceland’s national drink.
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“This will be a wonderful partnership,” Svanhildur Holm Valsdottir, Iceland’s ambassador to the U.S., said during the festivities.
SEAN CUDAHY/THE POINTS GUY
Southwest vies for global reach
Southwest plans to announce at least one additional international airline partner in 2025, executives reiterated Wednesday. Beyond that, Southwest hopes to expand its list of partners so Rapid Rewards members can choose from more destinations. Southwest Airlines is aiming to give customers more choices and expand its reach beyond the 737. Southwest Airlines jets at Harry Reid International Airport in Las Vegas. SEAN CUDAHY/THE POSTS GUY
Ofcourse, not that long ago, this wouldn’t have been possible. In recent years, Southwest Airlines has poured money into modernizing their notoriously outdated technological infrastructure. These investments are meant to prevent another holiday 2022 meltdown and pave the way for new changes, like Southwest’s first redeye flight next month. Not to mention, of course, allowing for Southwest to kick off its most global foray yet — a once hard-to-imagine tie-up with an international partner.
“This is a new capability we have. Watterson explained that transformation is the goal. “And we will use this as part of our normal business. We’ll add additional gateways.” Second partner. Third partner. Stay tuned…
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