PLAY Airlines, the Icelandic low-cost carrier, has announced it will stop all flights to the United States by October of this year.
PLAY started its transatlantic service in 2022, offering flights from Reykjavík’s Keflavík International Airport to Baltimore/Washington International, Boston Logan International, and New York’s Stewart International Airport. These US routes were connected via its European network, including flights to and from Dublin, Liverpool, and Stansted in the UK.
However, the airline has reportedly been impacted by too much capacity in the transatlantic market. As a result, in addition to ending its North American flights, PLAY will also reduce the number of destinations it serves in Northern Europe. Six of its aircraft will be leased to other airlines, with the remaining four focusing on routes from Iceland to “sunny destinations.”
Takeover Bid and Future Plans
Two of PLAY’s major shareholders plan to make a takeover offer for the airline, which would result in it being removed from the stock exchange. In a statement, the carrier said:
“The takeover group, led by CEO Einar Örn Ólafsson and Vice Chairman of the Board Elías Skúli Skúlason, intends to continue promoting competition in the Icelandic aviation market to benefit consumers, operating under the PLAY brand by offering affordable fares for Icelanders and tourists alike.”
PLAY launched in 2019, just seven months after the collapse of another Icelandic airline, Wow Air, which also operated one-stop transatlantic services connecting Europe and North America via Reykjavík. Icelandair continues to fly to several US cities, including Boston, Chicago, Denver, Minneapolis, New York, Orlando, Seattle, and Washington D.C.
CEO’s Comments
Einar Örn Ólafsson, investor and CEO of PLAY, commented on the news, stating:
“This is primarily a plan for practical changes to the operations of the Icelandic airline PLAY. We’re focusing on the profitable aspects of the business – sun destination flights – and discontinuing those that have not yielded results. We look forward to continuing to foster competition in the aviation market with our red aircraft and Icelandic crews. Our main goal remains to offer Icelanders affordable flights to the sun.”
