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Southwest unveils 2 new international gateways ahead of groundbreaking Icelandair pact

Jan. 15, 2025
6 min read
SEAN CUDAHY/THE POINTS GUY
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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, D.C., 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.

SEAN CUDAHY/THE POINTS GUY

“Interline partnerships are very common in the airline industry. But it’s our first one, so it’s very exciting for us,” Southwest's 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.

Customers will also be able to book Southwest-Icelandair itineraries through certain third-party booking sites.

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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.

A Southwest Airlines jet at Baltimore/Washington International Thurgood Marshall Airport (BWI). 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.

southwest 737 max 8
The cabin of a Southwest Airlines Boeing 737 MAX 8 aircraft. SEAN CUDAHY/THE POINTS GUY

Once assigned seating is live, though, Southwest plans to begin selling Icelandair seats through its booking channels. At that point, customers would be able to book flights to Reykjavik's 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 just kind of continue to layer on.”

Pomp and circumstance

The ceremonial launch of this partnership in D.C. was full of pomp and circumstance.

Southwest and Icelandair leaders exchanged gifts. The Reykjavik-based carrier offered up a piece of molten rock from a freshly formed lava field in Iceland. Southwest came with a decorative version of its signature emblem.

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

SEAN CUDAHY/THE POINTS GUY

“This will be a wonderful partnership,” Svanhildur Hólm Valsdóttir, 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, the carrier hopes a growing list of partners will give Rapid Rewards members more destinations to pick from.

“We’re having conversations with both additional transatlantic carriers as well as transpacific carriers,” Green acknowledged. “Ultimately, this is about giving customers choices, to expand the reach and breadth of the Southwest Airlines brand beyond the reach of the 737.”

airplanes
Southwest Airlines jets at Harry Reid International Airport (LAS) in Las Vegas. SEAN CUDAHY/THE POINTS GUY

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

In recent years, the airline has poured cash into modernizing its notoriously outdated technical infrastructure — investments meant to do everything from preventing another holiday 2022-esque meltdown to paving the way for changes like Southwest's first red-eye flights 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. And that’s what transformation is all about,” Watterson said. “And then we will make use of this as a normal course of business, we’ll add more gateways. A second partner. Third partner.”

Stay tuned ...

Related reading:

Featured image by SEAN CUDAHY/THE POINTS GUY
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

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  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.