American Airlines Set for a Return to the Land of Fire and Ice

American Airlines (AA) appears to be preparing for another return to Reykjavik Keflavik Airport (KEF), with industry insiders suggesting Iceland could feature in the carrier’s upcoming transatlantic expansion plans.

Although the airline has yet to confirm the destination, speculation indicates Philadelphia International Airport (PHL), American’s largest European gateway, would be the most likely departure point. The airline previously linked Reykjavik with Dallas/Fort Worth International Airport (DFW) before later relocating the service to Philadelphia.

Reykjavik Reportedly Missing from American’s Route Clues

American Airlines recently launched a teaser campaign hinting at five upcoming international destinations through a series of cryptic images that encouraged aviation enthusiasts to identify the cities.

However, aviation insider JonNYC believes the campaign intentionally omitted one additional destination. According to information shared by View from the Wing, he expects American to reveal three new transatlantic routes in the coming months, with Reykjavik believed to be one of them.

While JonNYC expressed confidence about Iceland’s return, he did not specify which U.S. hub would operate the flights or what aircraft American intends to deploy.

Philadelphia Seen as the Most Practical Choice

Philadelphia has become the backbone of American Airlines’ European network, making it the strongest candidate for renewed Iceland operations.

American first entered the Dallas-Reykjavik market in 2018 after Icelandair (FI) and the now-defunct Wow Air (WW) introduced flights between the two destinations. The airline operated the route using its 176-seat Boeing 757-200, equipped with lie-flat Business Class seats despite the route’s primarily leisure-focused demand.

At the time, then-Chief Executive Doug Parker emphasized American’s determination to defend its Dallas hub, saying the airline would match competitors whenever another carrier launched service from DFW.

Once Icelandair and Wow Air exited the Dallas market, American discontinued the DFW route and shifted Reykjavik flights to Philadelphia. Despite facing no direct competition on the new route, the airline eventually suspended the service.

Pandemic Interrupted Long-Term Iceland Plans

Before COVID-19 disrupted international travel, American had planned to expand Reykjavik operations beyond the summer season.

Rather than keeping year-round service from Dallas, the airline proposed daily winter flights from Philadelphia using the Boeing 757. Those plans were ultimately shelved as the pandemic reshaped global aviation.

Reykjavik has traditionally been driven by leisure travelers rather than premium corporate demand. The relatively short stage length also makes the route well suited to narrowbody aircraft. In fact, Philadelphia-Reykjavik is shorter than the domestic route between Boston Logan International Airport (BOS) and San Francisco International Airport (SFO).

Which Aircraft Could American Use?

Should Philadelphia become the launch point, American has several aircraft capable of operating the route.

The Airbus A321XLR offers the required range but may provide more premium seating than a leisure-heavy market typically requires, thanks to its Business Class suites and Premium Economy cabin.

Alternatively, the Boeing 737 MAX presents a simpler and more balanced option for Iceland service. The Airbus A321neo could also work during the summer months when favorable winds reduce operational challenges, although winter conditions make the aircraft less practical on westbound flights.

Competition Across Iceland Continues To Grow

Flights between the United States and Iceland remain highly seasonal, but competition has intensified in recent years.

Icelandair (FI), Delta Air Lines (DL), and United Airlines (UA) [the latter two with American have the largest fleet in the world] already operate services to Keflavik, while demand is expected to receive another boost ahead of the total solar eclipse on August 12, 2026, when the path of totality will pass across western Iceland.

Alaska Airlines (AS) recently joined the market, launching daily nonstop flights between Seattle-Tacoma International Airport (SEA) and Reykjavik on May 28, 2026. The seasonal service operates through early September using the Boeing 737-8 MAX and ranks among the airline’s longest narrowbody routes.

American budget carrier, Southwest Airlines (WN), is also widely rumored to be evaluating Iceland service. Industry reports suggest the carrier could launch flights from Baltimore/Washington International Airport (BWI) to Keflavik, with Nashville International Airport (BNA) also being considered for future expansion.

Southwest already maintains an interline partnership with Icelandair. If the airline proceeds with its own nonstop flights, Iceland would become Southwest’s first destination in Europe.