An acquisition plan led by the company’s top management foresees the cessation of transatlantic flights, the transfer of the entire fleet under Maltese registration, and a new focus on leisure and leasing markets

A radical change is on the horizon for Play Airlines, the Icelandic low-cost carrier preparing to cease its transatlantic operations and move its entire fleet under a Maltese license. The announcement, released by the airline around June 10 and picked up today by several media outlets, outlines an ambitious acquisition plan led by its CEO, Einar Örn Ólafsson, and Vice President, Elías Skúli Skúlason, through a special purpose vehicle named BBL 212.

According to the proposed plan, which aims to acquire full equity control of the Reykjavik-based operator, the transatlantic "bridge" routes to North America via Reykjavik will be discontinued after the Summer season, with the last US flights scheduled for October 2025. This strategic decision stems from the recognition that Play’s transatlantic network posted significant losses in 2024, contrasting with profits generated by its European leisure routes.

Play Airlines will surrender its Icelandic Air Operator Certificate (AOC) and transfer its entire fleet of ten Airbus A-320neo-family aircraft to its Maltese AOC, acquired earlier this year and operating under the name Play Europe. Four aircraft will remain based in Reykjavik to serve the Icelandic leisure market, focusing mainly on connections to Southern Europe and North Africa, as well as a selected number of Northern European cities. The airline has assured that "the offering of flights to sunny destinations from Iceland will remain strong" and that Icelandic passengers and crews will not notice changes in service.

The remaining six aircraft will be offered for leasing. Play Airlines has already secured a two-and-a-half-year lease agreement with SkyUp for four aircraft and stated that "discussions are underway with several counterparties" for the remaining two, emphasizing the high demand for modern narrow-body aircraft in the market amid supply constraints.

The acquiring group, BBL 212, which currently holds 20% of the carrier, has already obtained $7 million in financing and requires another $13 million to support the formal bid of 1 Icelandic króna (less than one US cent) per share and finance future operations. The airline will be delisted from Nasdaq Iceland.

This represents a decisive evolution in Play Airlines’ strategy, which was originally conceived to serve transatlantic routes but faced difficulties attributed to the pandemic, geopolitical context, and overcapacity in transatlantic services. The airline’s management believes that the introduction of single-aisle aircraft with greater range reduces dependency on hub-and-spoke networks. Despite the discontinuation of scheduled transatlantic operations, Play Europe has nonetheless filed a request with US authorities to operate charter services on these routes, under the US-Europe "open skies" agreement, indicating potential future flexibility because, you never know...