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Delta Ran Icelandair Out Of Detroit, Then Cut The Route Itself: The Nasty Side Of Competition

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Usually we say that competition is good for consumers, but here’s a case where it isn’t, as a Delta hub will go from having two airlines flying to Iceland, to having zero airlines flying to Iceland. I guess there’s no one to really blame here, but it’s bad for consumers!

Delta cuts Detroit to Keflavik route, after Icelandair exit

I guess that’s just how competition works, right?

Bottom line

Delta cuts Detroit to Keflavik route, after Icelandair exit

Icelandair operates a unique business model, whereby it uses its hub in Keflavik (KEF) to serve markets on both sides of the Atlantic, so that the airline can tap into the local market, as well as offer one-stop service all over the place.

In 2023, we saw Icelandair launch flights to Detroit (DTW) . Detroit is a fortress hub for Delta, so the airline has a lot of pricing power there.…

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