Southwest announces 2 new international ‘gateways’ ahead of Icelandair partnership

Southwest Airlines will launch its first international flight 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, setting the stage for Southwest to formally sign an interline agreement with Icelandair at a ceremony in nearby Washington on Wednesday.

TPG was on hand as executives signed an agreement cementing the partnership between the two companies, which will finally allow Southwest loyalists to redeem Instant Rewards points on flights to Iceland, Europe and beyond.

The event, held at the Icelandic embassy in the US, marks what Southwest is doing as the first concrete step in a series of major changes the Dallas-based carrier outlined last year. That change will eventually bring the first assigned seats and extra legroom to Southwest’s Boeing 737s.

First, however, this is joining forces with Icelandair.

“Interline partnerships are very common in the airline industry. But it’s our first, so we’re very excited,” Southwest chief operating officer Andrew Watterson said before the two carriers made their partnership official.

Partnership soft launch

As TPG reported in September, the Southwest-Icelandair merger will be limited at first.

From February, travelers will be able to book itineraries with seamless connections between the two carriers through Icelandair’s website.

From the start, the partnership will focus on just one gateway on the US side: Southwest’s Baltimore/Washington International Thurgood Marshall Airport (BWI) hub.

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However, the carrier plans to expand the setup at Denver International Airport (DEN) and Nashville International Airport (BNA), Southwest executives revealed Wednesday.

“We’re going to continue to do this in phases,” Ryan Green, the Southwest executive charged with overseeing the airline’s changes announced last year, told TPG on Wednesday.

A serious relationship begins next year

Expect the two airlines’ commitments to increase in 2026, after Southwest introduces assigned seats; plans to change its technology systems to facilitate collaboration during open seating — and after switching to assigned seating — didn’t make sense, Green said.

However, once the assigned seats go live, Southwest plans to start selling Icelandair seats through its reservation channels. At that time, customers will be able to book flights to Keflavik Airport (KEF) and other European destinations through Southwest’s website.

“We’re going to add parts … like hola once [redeem] With Immediate Rewards, and loyalty,” Green added. “And we’re going to keep going.”

Glamor and status

The celebratory launch of this partnership in DC was full of pomp and circumstance.

Southwest and Icelandair leaders exchanged gifts. A Reykjavik-based carrier has donated a piece of molten rock from a newly formed facility in Iceland. Southwest has come up with a decorative version of its signature logo.

Then, leaders from both carriers raised their glasses for a toast (“Skál!”) to Brennivin, Iceland’s national drink.

“This will be a great partnership,” said Svanhildur Hólm Valsdóttir, Iceland’s ambassador to the US during the festivities.

Southwest strives to reach the world

Southwest plans to announce at least one more international airline partner by 2025, executives also said Wednesday. In addition, the carrier hopes that the growing list of partners will give Rapid Rewards members more destinations to choose from.

“We have discussions with both additional transatlantic carriers and transpacific carriers,” Green admitted. “Ultimately, this is about giving customers choice, expanding the reach and breadth of the Southwest Airlines brand beyond the reach of the 737.”

Of course, not too long ago, none of this would have happened.

In recent years, the airline has poured money into upgrading its outdated technology infrastructure — investments aimed at doing everything from preventing a 2022 holiday meltdown to paving the way for changes like Southwest’s first redeye flights next month. Not to mention, of course, allowing Southwest to launch its own global campaign in the meantime – a once-hard-to-imagine encounter with an international partner.

“This is a new capability that we have. And that’s what revolution is all about,” Watterson said. “Then we will use this as a normal course of business, we will install other gates. Second partner. Third partner.”

Stay tuned …

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