Icelandair pulls DFW Airport service as country's tourism market cools off

2019-01-13 19:01:16

North Texas travelers will have fewer options to get to Iceland next summer, with Icelandair pulling its non-stop service from DFW International Airport and WOW Air's return uncertain.

Icelandair has stopped selling tickets beyond March 6, 2019, according to industry website Routes Online. A DFW Airport spokeswoman confirmed that Icelandair notified the airport it intends to suspend service. 

Icelandair did not return The Dallas Morning News' request for comment.

WOW Air stopped operating its seasonal service in October. A WOW spokeswoman said at the time the carrier was still finalizing its summer schedule and had not determined whether it would return to DFW. The company did not return a request for comment this week, but it has formally pulled service from several other U.S. airports in recent months amid financial challenges.

The pullback comes just a year after airlines rushed in to serve the popular tourist destination, with Icelandair and WOW Air announcing within eight days of each other last year they would fly the route from DFW. American followed two months later in November 2017.

As of now, American is the only carrier scheduled to fly in 2019 from DFW to Keflavik International Airport, the island nation's main gateway located near the capital of Reykjavik.

Iceland has seen a tourism boom in recent years, with 2.2 million international visitors in 2017, nearly double the amount from just two years earlier. The destination has long been a low-cost connecting point for travelers on their way to Europe, but the country's unique landscape and growing tourism industry have increased its popularity.

Tourism growth slowed significantly in 2018 after several years of rapid growth by the airlines, which when paired with rising fuel costs put financial pressure on both Icelandair and WOW.

In August, Icelandair's chief executive officer resigned after the carrier predicted an $80 million to $100 million decline in earnings for the year, according to Bloomberg.

Faced with its own challenges, the upstart WOW Air, which uses a low-fare, high-fee model favored by ultra-low-cost carriers, has been forced to look for outside help.

In November, Icelandair announced a deal to purchase its smaller rival WOW. When that deal fell through, WOW reached a tentative agreement to be acquired by Indigo Partners, which has stakes in Frontier Airlines and low-cost carriers in several other countries.

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