PLAY Halts Affordable Iceland-U.S. Transatlantic Routes in October

Updated: June 10, 2025, 11:51pm CDT

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The End of an Era for PLAY Airlines
Final Thoughts

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Could this be the nail in the coffin for low-cost transatlantic flights via Iceland?

PLAY airlines will end all flight operations to the U.S. from its hub at Keflavík Airport in Reykjavík (KEF). After exactly 4 years, the business model has proved unprofitable.

“We’re focusing on the profitable aspects of the business — sun destination flights — and discontinuing those that have not yielded results,” said Einar Orn Olafsson, investor and CEO at PLAY.

Let’s take a look at the details.

The End of an Era for PLAY Airlines

Starting in October, PLAY’s striking red jets will no longer be seen at airports in the U.S. Sadly, this means the end of fares connecting the U.S. to Europe via Iceland for less than $300.

The move is part of a new strategy being implemented by Olafsson and Elias Skuli Skulason, vice chairman of the board at PLAY. Together, they will take full control of the airline and remove it from the stock exchange.

Rather than completely shut down the airline, the pair plan to continue PLAY’s operations with just a handful of routes to continental Europe from Iceland. The focus will be on warm and sunny destinations to provide Icelanders an escape from the year-round low temperatures.

“Our main goal remains to offer Icelanders affordable flights to the sun,” said Olafsson.

PLAY Airlines route map — PLAY’s once expansive route network will be reduced to just a handful of routes connecting Iceland with mainland Europe. Image Credit: PLAY

PLAY’s future will consist of just 4 aircraft, operated by a Maltese Air Operator Certificate (AOC). The carrier’s 6 other planes will be leased to other airlines.

Aside from the slashing of routes, everything else about flying PLAY will remain the same.

As the third airline to attempt to crack the low-cost transatlantic market via Iceland, it’s no surprise that PLAY gave up, too. The original player was Iceland Express, which, after trying for several years, eventually failed in 2012 and rebranded as WOW Air. WOW, the bright purple airline, lasted until 2019 when it filed for bankruptcy.

Hot Tip:

Bagging a bargain fare to Europe is still possible, even without PLAY. Thanks to points and miles, you can fly there and back in a lie-flat bed for way less cash than PLAY’s fares.

Final Thoughts

PLAY has once again proved the challenges of operating as a low-cost carrier in a competitive market where even full-service carriers can offer great value and low fares.

The next chapter remains uncertain, but at least PLAY has the means to pivot its business model to avoid the total shutdown that closed the book on Iceland Express and WOW.