PLAY Airlines has announced a complete withdrawal from transatlantic operations, canceling all U.S. routes by October 2025 as part of a major corporate restructuring. The Icelandic low-cost carrier will shift focus to European leisure markets and aircraft leasing following a shareholder buyout and planned delisting from Nasdaq Iceland.
Phased US Market Exit
The airline will terminate services to U.S. destinations on a staggered schedule, beginning with Stewart International Airport (SWF) on September 1, followed by Boston Logan (BOS) on September 15, and concluding with Baltimore/Washington (BWI) on October 24. This retreat marks the end of PLAY’s ambitious but unprofitable transatlantic experiment that initially promised affordable fares between Iceland and Northeast U.S. cities.
Strategic Reorientation
PLAY will concentrate operations on Southern European leisure destinations while reducing Northern European routes. The restructured airline will maintain just four aircraft in Iceland, leasing six others through ACMI agreements. A key element of the transformation involves transferring its Air Operator Certificate to Malta, taking advantage of the jurisdiction’s favorable regulatory environment for aircraft leasing operations.
Corporate Restructuring Underway
Major shareholders CEO Einar Örn Ólafsson and Vice Chairman Elías Skúli Skúlason have proposed taking the company private at ISK 1 per share, with a minimum $20 million capital injection already partially secured. Despite the delisting and operational changes, PLAY will retain its distinctive brand identity, red livery, and Icelandic-based flight crews to maintain its market presence.
Industry Challenges Prompt Change
The decision reflects broader difficulties facing long-haul budget carriers in today’s volatile aviation market, where high fuel costs and seasonal demand fluctuations have made transatlantic operations particularly challenging. PLAY’s experience mirrors other low-cost carriers that have found sustainable profitability requires focusing on short-haul routes with consistent demand.
Future Operations and Outlook
While exiting the competitive U.S. market, PLAY remains committed to serving as Iceland’s secondary carrier, connecting Keflavík with popular European destinations. The airline assures passengers of minimal operational disruptions during the transition period, with customer experience and employment terms remaining unchanged despite the corporate restructuring.
