This European Airline Cancels All its Flights to the US

dailyblitz.de 1 day ago

REYKJAVÍK— PLAY Airlines (OG) will cease all flights to the United States (US) from October 2025, marking a strategic retreat from the North American market. The decision coincides with a planned shareholder-led takeover and company delisting from the Nasdaq Iceland exchange.

The airline currently operates from Keflavík International Airport (KEF) and has established U.S. connections to cities such as New York (JFK) and Washington, D.C. (IAD). This restructuring is set to pivot PLAY’s focus toward European sun destinations and aircraft leasing.

PLAY Airlines Cancels US Flights

Two major shareholders—CEO Einar Örn Ólafsson and Vice Chairman Elías Skúli Skúlason—are initiating a full takeover of PLAY Airlines (OG), including a delisting and capital restructuring.

The plan is designed to redirect the airline’s efforts toward profitability, following underperformance in long-haul U.S. operations.

The acquisition offer values PLAY at ISK 1 per share, with shareholders given the option of cash or shares in the new private entity. This move will also see a minimum capital infusion of USD 20 million, with over one-third already secured.

The new strategy will retain the PLAY brand and aircraft design while shifting the operational certificate to Malta, ending its current Icelandic AOC.

Key operational shifts include:

Complete termination of all U.S. routes from October 2025.
Expansion of leisure-focused flights from Iceland to Southern Europe.
Reduction in frequency and destinations across Northern Europe.
Continued operation with four aircraft based in Iceland.
Six aircraft to be leased under ACMI agreements to other carriers.
Growth of operational offices in Malta and Lithuania.

Despite these backend changes, passengers will not notice significant differences. PLAY’s aircraft will maintain their red livery, and Icelandic flight crews will continue under existing labor agreements.

Specific U.S. route terminations include as flagged by Ishrion Aviation:

Stewart International Airport (SWF): ending after September 1, 2025
Boston Logan International Airport (BOS): ending after September 15, 2025
Baltimore/Washington International Airport (BWI): ending after October 24, 2025

Baltimore/Washington International Thurgood Marshall Airport (BWI) has seen the exit of seven airlines in recent years, reflecting broader changes in airline strategy, route profitability, and competitive pressures in the U.S. Northeast corridor.

Failed to Achieve Profitability

PLAY Airlines entered the transatlantic market with low-cost fares but struggled to achieve sustainable profitability amid rising operational costs and seasonal demand imbalances.

The upcoming exit from U.S. routes reflects a broader realignment to concentrate on high-demand, short-haul destinations with more consistent margins.

The decision is also part of a cost-optimization strategy. Operating under a Maltese AOC allows for regulatory and financial advantages, particularly in aircraft leasing, a growing focus area for the airline. The restructured company aims to generate steady revenue by leasing out part of its fleet to third-party operators globally.

Operational Continuity and Market Position

PLAY intends to remain a consumer-focused brand in Iceland’s aviation market, providing competitive fares to sunny destinations across Europe.

This realignment reduces the risk of seasonal revenue gaps and positions the airline to better withstand volatility in long-haul international travel.

CEO Ólafsson emphasized that the airline’s Icelandic identity will remain intact. “We are not changing who we are—we are simply focusing on what works,” he stated, reaffirming the airline’s commitment to affordable travel and domestic employment.

Stay tuned with us. Further, follow us on social media for the latest updates.

Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News

Europe has Now Banned 169 Airlines with Two New Additions

The post This European Airline Cancels All its Flights to the US appeared first on Aviation A2Z.

Read Entire Article