American Airlines is preparing to defend its position at the Dallas/Fort Worth (DFW) hub against competition from Icelandic carriers Icelandair and Wow.
Starting from June 7 to October 26, American will operate seasonal flights between DFW and Reykjavik. This will be the first time American has served Iceland, and the decision to launch this route comes after Icelandair and budget carrier Wow announced their own plans to fly between Dallas and Reykjavik back in September. Wow will start their service on May 24, just six days before Icelandair begins theirs.
When asked if American’s decision to serve Iceland was a response to the competing Icelandic airlines, American spokesperson LaKesha Brown chose not to comment directly, stating instead that the airline is always looking for ways to improve their network and provide customers with popular travel destinations. Brown also highlighted DFW’s extensive connections as a major advantage for American customers looking to travel to Reykjavik.
The rise of Wow and the fare wars between Wow and Icelandair have made Reykjavik a popular destination for U.S. tourists. In fact, according to ARC, the number of roundtrip tickets purchased for travel between Iceland and the U.S. has increased by 42% in the first half of this year.
However, it is likely that American’s decision to make Dallas-Reykjavik their first Iceland route is also intended as a message to Icelandair and Wow. According to Airline Weekly’s managing partner Seth Kaplan, American is drawing a line in the sand and asserting their presence in the market. While American may not offer the same connecting route network as Icelandair and Wow, they have a clear advantage for travel to and from DFW.
Kaplan also highlighted that American’s main challenge from Wow and Icelandair is in connecting European service. For example, both Icelandic carriers fly to Stockholm, a city that can also be reached from Dallas by flying American to London Heathrow and then connecting with American’s joint venture partner, British Airways.
With Wow and Icelandair already competing in several U.S. markets, American’s entry into the market will likely drive fares even lower. Brown stated that American will offer competitive fares with similar product offerings.
American’s decision to fly Dallas-Reykjavik is similar to United’s decision in September to launch seasonal flights between Newark and Reykjavik in May. This will also be United’s first route to Iceland, as they look to defend their hub against Wow and Icelandair. The difference is that United was able to analyze the performance of Wow and Icelandair’s Newark-Iceland routes before making their decision, as both carriers have been operating flights on this route for several years.
American will operate the Dallas-Reykjavik route using a Boeing 757 aircraft with lie-flat business class seats, which is a product not offered by Wow or Icelandair.
___
Correction: United will also begin competing against Wow and Icelandair with their seasonal Newark-Reykjavik service starting in May.
Be First to Comment