PLAY Airlines Restructures, Ends U.S. Flights in 2025
Icelandic low-cost airline PLAY has announced major changes to its business structure and flight operations as it seeks to stabilize its financial position and achieve long-term profitability. The airline’s two largest shareholders, CEO Einar Örn Ólafsson and Vice Chairman of the Board and co-founder Elías Skúli Skúlason, are moving forward with a plan to acquire all remaining shares of the company they do not already control. Once the acquisition is complete, PLAY will be delisted from Nasdaq Iceland and become a privately held company. The buyout offer stands at 1 Icelandic krona (approximately US$0.008) per share, slightly above the share price of 0.9 ISK as of June 12, 2025. The full transaction is valued at around US$20 million, with the buyers having already secured nearly one-third of the required funds.
Operationally, PLAY is making significant adjustments to its network. The airline confirmed that it will cease all North American flights starting in October 2025, marking a full withdrawal from transatlantic operations. This strategic pivot aligns with the carrier’s renewed focus on serving European leisure destinations. At the time of this announcement, PLAY’s U.S. network was already limited to three destinations: New York Stewart International, Boston Logan International, and Baltimore-Washington International. The airline’s departure from these markets represents a major shift from its original business model.
When it first launched, PLAY attempted to emulate Icelandair’s successful transatlantic model, which leverages Iceland’s geographic location as a stopover hub between North America and Europe. PLAY aimed to offer similar routing with even lower fares, primarily using single-aisle aircraft for its transatlantic routes. However, management acknowledged in October 2024 that the strategy was not delivering the expected financial returns, prompting a decision to shift focus toward intra-European routes and the Canary Islands, where demand for leisure travel remains strong.
In addition to halting North American service, PLAY will also scale back its flights to select northern European destinations and return its Icelandic Air Operator Certificate (AOC). Moving forward, the airline will operate exclusively under its Maltese AOC. As of June 2025, PLAY’s fleet consists of 10 aircraft, with eight operated by its Icelandic division and two A321s managed under the Maltese AOC. Under the new structure, only four aircraft will continue operating flights from Iceland under the PLAY brand. The remaining six aircraft will be leased to other airlines through ACMI agreements, generating additional revenue streams while reducing operational risk.
Despite these downsizing efforts, PLAY intends to maintain its Icelandic flight crews while gradually relocating most of its administrative and back-office functions to Malta and Lithuania. This restructuring reflects PLAY’s broader strategy to simplify operations, lower costs, and focus resources on markets where it sees the strongest growth potential.
The sweeping changes represent a major turning point for PLAY, as the airline abandons its initial transatlantic ambitions and concentrates on its core European leisure business while optimizing its fleet utilization through ACMI leasing partnerships.
Related News : https://airguide.info/?s=PLAY+Airlines