Icelandair has picked the first two North American routes for its incoming Airbus A320neo fleet: Toronto Pearson and New York JFK. The narrowbody jets start transatlantic flying in September 2027, with Toronto kicking off on September 13 and New York following on October 1. Both routes get six weekly rotations, with evening departures from Keflavik and overnight returns from North America.
Neither city is new for Icelandair — the airline already flies both. What changes is the aircraft: a 154-seat A320neo with 16 Saga Premium seats and 138 in economy, slotting in as a smaller option alongside the airline's A321LRs and Boeing 737 MAX. Flight numbers are FI605/604 for Toronto and FI619/618 for New York.
The deployments are part of a much bigger fleet overhaul. Icelandair is retiring its remaining Boeing 757s and 767s and leasing ten used A320neos built between 2018 and 2020, split between AviLease (four arriving before summer 2027) and Aircastle (six more in winter 2027–28). Several of the jets previously flew with IndiGo in India. By early 2027 the airline expects nine A321LRs in service, with the first A321XLRs due from 2029 — all told, the carrier says its new-generation fleet will use up to 30% less fuel per seat and bring the average aircraft age down to about 5.5 years.
There's a knock-on effect for travellers: Icelandair expects to offer more frequencies but slightly fewer total seats in summer 2027, since smaller planes will fly the routes the bigger Boeings once covered. That can mean more choice of departure times, though booking earlier is wise on popular summer dates.
The airline is also deepening its ties with Alaska Airlines. An expanded codeshare, effective from around October 19, turns existing one-way arrangements into two-way ones on six European routes from Reykjavik: Bergen, Frankfurt, Munich, Oslo, Vágar in the Faroe Islands, and Zurich. Combined with Alaska's new seasonal Seattle–Reykjavik service launched in May 2026, that gives North American passengers far more one-stop options into Europe via Iceland, with loyalty benefits and reciprocal lounge access along the way.
Why it matters for travellers: Iceland's stopover model keeps getting easier. Whether you're booking a simple Keflavik connection or staying a few days, the growing Airbus fleet and beefed-up Alaska partnership mean more flight times, more US gateways feeding into Iceland, and a fresher aircraft on many transatlantic routes from 2027 onwards. Toronto and New York are just the first two destinations to see the new jets — expect more to follow.
