Play Airlines to Exit U.S. and Shift to Malta-Based Model
Icelandic airline Play is preparing for a major transformation as it plans to exit the U.S. market and shift to a smaller, leisure-focused operation under a management-led buyout that will take the company private. The proposed takeover, announced in a filing to the Central Bank of Iceland, would delist Play from Nasdaq Iceland and restructure the airline’s business model around leisure routes, wet leasing, and a new operational base in Malta. CEO Einar Örn Ólafsson and Vice Chairman Elías Skúli Skúlason confirmed their intention to acquire all remaining shares of Play through a new holding company, BBL 212 hf. The offer values each share at ISK1, representing a 24.2% premium over the airline’s latest stock price. Shareholders will have the option to receive either cash or shares in the new entity. Supporters of the plan already hold 20% of Play’s equity, with $7 million in financing secured and plans to raise another $13 million to finalize the acquisition and fund operations.
As part of the restructuring, Play will suspend all remaining U.S. routes by the fall of 2025. Flights to New York Stewart will end September 1, followed by Boston Logan on September 15, and Baltimore/Washington on October 24. The airline will also cut several Northern European routes as it abandons the hub-and-spoke strategy that it originally adopted when launching operations four years ago. Internal financial data revealed that Play’s transatlantic network posted a $20 million loss in 2024, while its European leisure routes generated a $24 million profit. The shift reflects broader industry trends, with many European carriers redeploying capacity across the Atlantic due to limited access to East Asia routes impacted by Russian airspace restrictions. This oversupply has intensified competition and lowered transatlantic yields.
Moving forward, Play will focus its network on four Airbus A320-family aircraft operating from Reykjavik Keflavík Airport, serving leisure and visiting friends and relatives (VFR) markets. The airline has already announced new routes to popular sun destinations such as Antalya, Faro, and Agadir. According to company data, the leisure travel sector has grown at an average rate of 18.4% annually over the past decade. Ólafsson stated that Play is targeting profitable sun destination and VFR routes while exiting underperforming markets. The airline is also eyeing growth in Eastern Europe, where VFR demand has grown at a compound annual rate of 26.7% over the past decade.
In parallel, Play is expanding its wet leasing and ACMI operations. The airline has already placed four aircraft with SkyUp and is negotiating leases for two additional aircraft. All aircraft will be transferred to Play’s Maltese air operator certificate, which was secured in March 2025. The Icelandic AOC will be retired as the company transitions its corporate operations to Malta and Lithuania. Investor documents reveal that Play has signed a memorandum of understanding with a mid-size international carrier operating to 90 destinations across 30 countries, which may acquire up to a 49% stake in Fly Play Europe, Play’s Malta-based subsidiary. Additionally, Play is exploring a partnership in Kosovo to establish a virtual national carrier alongside three leading tour operators. If successful, these moves could position Play as a valuable player in the leasing market, backed by its modern, fuel-efficient fleet and revised capital structure, pending regulatory approval.
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