Icelandair Reveals First 2 Transatlantic Routes For Its Airbus A320neos

Published Oct 30, 2026, 3:05 PM EDT Paul has had a career of 25+ years focused on the international technology sector, which has taken him to over 100 countries. Along the way, he developed a deep love for aviation, with a travel bucket list measured by aircraft types flown rather than destinations reached. Now he brings that avgeek passion, along with the journalism experience he accumulated early in his career, to write insightful pieces for Simple Flying. Icelandair has revealed the first two North American routes for its incoming Airbus A320neo fleet, with the aircraft scheduled to begin transatlantic services in September 2027. According to new schedules published by AeroRoutes, the Icelandic flag carrier will deploy the smaller narrowbody jets on flights from Reykjavík's Keflavik International Airport (KEF) to Toronto and New York, with each route receiving six weekly services. The move represents another milestone in Icelandair's fleet transformation, as it prepares to retire its remaining passenger Boeing 757s and Boeing 767s and introduce ten leased A320neos. The airline is also strengthening its international connectivity through an expanded codeshare agreement with Alaska Airlines, giving passengers additional opportunities to travel between North America and Europe. Icelandair's First Transatlantic A320neo Routes Credit: Simple Flying Toronto Pearson International Airport (YYZ) will become Icelandair's first North American A320neo destination on September 13, 2027, followed by New York JFK Airport (JFK) on October 1. Both routes are already served by Icelandair, meaning the development represents an aircraft deployment rather than the launch of new destinations. The A320neos will operate evening departures from Iceland and overnight return flights from North America. The latest schedule filing identifies flights FI605/604 for Toronto and FI619/618 for New York, with six weekly rotations on each route. The aircraft will feature 154 seats, including 16 in Saga Premium and 138 in economy. That gives Icelandair a smaller-capacity alternative to its Airbus A321LRs and Boeing 737 MAX aircraft on selected transatlantic services. Route From Reykjavík Start Date Weekly Flights Departure From Iceland Return Departure Toronto Pearson September 13, 2027 6 8:00 PM 11:10 PM New York JFK October 1, 2027 6 7:50 PM 11:10 PM The deployments support Icelandair's wider effort to simplify its fleet and reduce operating costs. Announcing the A320neo lease agreements in July, Icelandair CEO Bogi Nils Bogason highlighted the efficiency improvements expected from the transition to newer aircraft. The airline expects its renewed fleet to deliver substantially lower fuel consumption per seat than the older Boeing jets it replaces. "Next year, we will reach the important milestone of operating our entire passenger network with new-generation aircraft that consume up to 30% less fuel per seat." Ten Leased A320neos Replace Older Boeing Jets Icelandair has secured ten used Airbus A320neos through long-term lease agreements with AviLease and Aircastle. The aircraft are powered by Pratt & Whitney engines and were manufactured between 2018 and 2020, according to the airline's July announcement. Four will arrive ahead of summer 2027, with the first three previously operated by IndiGo as VT-IJQ, VT-ISA, and VT-ISI. The remaining six are expected during the following winter. The A320neos will complement Icelandair's growing fleet of Airbus A321LRs, the first of which entered service in December 2024. Nine A321LRs are expected to be operating by early 2027, while deliveries of the longer-range A321XLR are scheduled to begin in 2029. Together with the Boeing 737 MAX, these aircraft will replace the airline's aging Boeing 757 and 767 passenger fleets. Aircraft Type Number Delivery / Acquisition Airbus A320neo 4 AviLease; ahead of summer 2027 Airbus A320neo 6 Aircastle; winter 2027–28 Airbus A321LR 9 Expected by early 2027 Airbus A321XLR 13* Deliveries from 2029 *The A321XLR agreement also includes 12 purchase rights. Interestingly, Icelandair expects to offer more frequencies but slightly fewer seats during summer 2027 as the larger Boeing aircraft disappear. During its October earnings call, Bogason explained that smaller aircraft would allow the airline to improve connectivity while adjusting capacity to demand. Icelandair also expects its fleet renewal to reduce the average aircraft age to approximately 5.5 years. Alaska Airlines Partnership Opens More Connections Credit: Markus Mainka | Shutterstock Meanwhile, Alaska Airlines has expanded its codeshare agreement with Icelandair, adding reciprocal arrangements on six European routes from Reykjavík. According to an AeroRoutes report, the changes took effect around October 19 and convert previously one-way codeshares into two-way arrangements. The expansion covers destinations in Germany, Norway, Switzerland, and the Faroe Islands. Destination From Reykjavík Country Codeshare Change Bergen Norway Two-way Frankfurt Germany Two-way Munich Germany Two-way Oslo Norway Two-way Vágar Faroe Islands Two-way Zurich Switzerland Two-way The two airlines have maintained a partnership for more than a decade, with their expanded bilateral agreement supporting connecting itineraries, loyalty benefits, and reciprocal lounge access. Alaska also launched seasonal nonstop Seattle–Reykjavík flights in May 2026, complementing Icelandair's network of more than 35 daily departures to European destinations. This gives Alaska passengers additional one-stop options beyond its own expanding international route network. The latest developments underline Icelandair's strategy of strengthening transatlantic connectivity without relying exclusively on larger aircraft or additional nonstop routes. Smaller A320neos will allow the airline to tailor capacity more closely to demand, while partnerships with Alaska and Southwest Airlines extend its reach across the United States. Together, fleet renewal and network cooperation should provide greater flexibility as Icelandair prepares for a next-generation passenger fleet in 2027.