Icelandair Adds Economy Light to Better Compete With WOW Air
WOW Air's ultra-low fares to Iceland and beyond are a boon for budget-minded travelers, and while they've helped push Europe ticket prices down across the board, they're also eating away at legacy carrier bottom lines — especially at home in Iceland.
Icelandair first began flying passengers in 1938 and now operates service to almost 50 destinations from Reykjavik's Keflavik International Airport (KEF). WOW Air, meanwhile, is a newcomer, having recently celebrated its five-year anniversary. Its fleet is already 17 strong, however, and with 33 destinations and many more on the way, the carrier's clearly keeping Icelandair executives on their toes.
Wednesday, Icelandair took a major first step to compete with WOW's significantly lower pricing, with a new coach product called Economy Light. It isn't a separate class of service, but sounds like a less restrictive version of the Basic Economy booking option we've seen in the US. Icelandair's announcement stops short of stating that Economy Light fares will be cheaper than the coach rates currently on the market, but if the airline wants to compete with WOW, something's really gotta give...
The airline describes the new Economy Light booking class:
This option is designed for travelers taking a short weekend getaway or a quick business trip abroad. The new fare is also perfect when traveling with family members that don't require additional luggage such as children or couples who can pack together. These passengers will enjoy the same quality of service from Icelandair including in-flight entertainment, non-alcoholic beverages, gate-to-gate wi-fi access and comfortable, spacious seats.
So, essentially, Light fares simply exclude a checked bag — one 50-pound bag is included with Economy Standard and Economy Flex fares. Once on board, Economy Light passengers receive the same service as everyone else. Starting ticket change rates are higher, though, at $275, compared with $200 for Standard and $75 for Flex. Economy Light fares still include a free stopover of up to seven days, and Light fares are eligible for mileage accrual at the same rate as Standard tickets.
I haven't been able to find Economy Light fares just yet, however, so it isn't clear just how much less expensive these tickets will be.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + 4% back in Bilt Cash on everyday purchases |
Pros
- Unlimited up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Housing payments may include transaction fees, depending on the payment method
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 3 months + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.