Play Airlines to End All Flights to the U. S.
Icelandic budget airline Play Airlines has announced its decision to terminate all flights to the U. S. by October. This comes after 3 and a half years of operating in the transatlantic market, with hopes of attracting travelers with its low fares.
The airline will cease its operations from Keflavik International Airport (KEF) to New York Stewart International Airport (SWF) on September 1st, to Boston Logan International Airport (BOS) on September 15th, and to Baltimore/Washington International Thurgood Marshall Airport (BWI) on October 24th, as stated on its website.
Instead, Play Airlines will shift its focus to leisure travelers within Iceland and Europe, and reduce its fleet size by leasing out six of its ten Airbus A320neo family planes to other airlines, according to an investor presentation on Tuesday.
Travelers can still find alternative options for flights between Iceland and Play’s former U. S. destinations. Icelandair currently operates flights from KEF to BWI and BOS, as per schedule data from aviation analytics firm Cirium. While it does not have flights to SWF, it does offer connections from KEF to two of New York City’s major airports – Newark Liberty International Airport (EWR) and New York John F. Kennedy International Airport (JFK).
The decision to exit the U. S. market is part of Play Airlines’ strategic plan to boost profitability. The carrier stated that the North American market has undergone significant changes since its launch in April 2022. This includes an increase in transatlantic capacity from established airlines, the introduction of new nonstop flights on longer-range narrow-body planes such as the Airbus A321XLR, and a shift in travelers’ preferences towards more premium offerings.
Play Airlines follows the standard budget airline model, offering low base fares and charging for additional amenities such as assigned seats and checked baggage. The airline’s most premium onboard option is a limited number of extra-legroom seats.
The airline was launched in 2021 as a revival of the failed Icelandic budget airline Wow Air. The then-CEO Birgir Jonsson had high hopes, citing Iceland’s flourishing tourism industry and the need for an affordable alternative to Icelandair. Jonsson assured that Play would not repeat the mistakes of Wow Air by controlling its growth.
However, according to the investor presentation, the reality was different. Play’s North American routes only turned a profit in the second and third quarters of 2023, while incurring losses throughout the rest of its duration.
In March 2024, Einar Orn Olafsson took over as Play’s CEO and stated in an interview with TPG in May that his main focus was to stabilize the financial position of the airline. As a result, the carrier would reduce its growth in North America and prioritize more profitable European flights, although it still sees potential in the U. S.