Home Base and Hubs: Keflavik International Airport, about 30 miles from Reykjavik.
Market Area: Gateways in Boston, Denver, Halifax, Minneapolis, New York (JFK), Sanford/Orlando, Seattle-Tacoma, Toronto, and Washington, D.C., and services 22 airports in 14 European countries via Keflavik hub stops/connections. Many routes are seasonal.
Alliances and Partners: No alliance; partners with Alaska, Finnair, JetBlue, and SAS Scandinavian Airlines.
What's Special: Icelandair offers no-charge stopovers in Iceland on North America/Europe through tickets, plus optional hotel and sightseeing packages. Icelandair (then Loftleidir) originally became important in the pre-deregulation era when it flew from the U.S. to Luxembourg at fares that undercut the regulated big-line fares. The line—with its stopover—became known as the "backpackers' airline" because its low fares attracted so many wandering young people. Since then, its key appeal is the ability of passengers on any ticket to visit one of the world's unique and fascinating destinations for no extra airfare.
Downside: Iceland is an expensive destination; Icelandair's product is unexceptional.