
Icelandic low-cost carrier PLAY Airlines announced it will cease all flights to the United States starting October 2025, marking a strategic withdrawal from the North American market after years of unprofitable transatlantic operations.The airline, which currently flies from Keflavík International Airport (KEF) to U.S. cities including New York (JFK), Washington D.C. (IAD), Baltimore (BWI), Boston (BOS), and Stewart (SWF), will terminate these routes by late 2025. The last U.S. flight is scheduled for October 24, 2025, from Baltimore.
This move coincides with a shareholder-led takeover by CEO Einar Örn Ólafsson and Vice Chairman Elías Skúli Skúlason, who plan to take the company private, delist it from Nasdaq Iceland, and restructure its capital with a minimum $20 million infusion already partially secured.PLAY’s new strategy pivots away from the challenging, highly seasonal, and competitive North American market toward more profitable leisure routes connecting Iceland with Southern Europe.
The airline will maintain four aircraft based in Iceland for these leisure flights while leasing six others to third-party carriers under ACMI agreements. Operational certificates will shift to Malta, offering regulatory and financial advantages especially in aircraft leasing.Despite these backend changes, passengers will see little difference: PLAY’s distinctive red aircraft and Icelandic crews under existing labor agreements will remain, preserving the brand’s identity and commitment to affordable travel.
PLAY’s exit from the U.S. reflects the broader difficulties faced by low-cost transatlantic carriers trying to sustain profitability amid rising costs and demand fluctuations. CEO Ólafsson emphasized the airline’s renewed focus on what works best: “We are not changing who we are we are simply focusing on what works,” reaffirming the airline’s dedication to Icelandic roots and competitive fares to sunny European destinations.
This strategic retreat ends PLAY’s four-year attempt to crack the low-cost transatlantic market via Iceland, following in the footsteps of predecessors like Iceland Express and WOW Air, which also struggled to sustain long-haul operations. Travelers looking for budget flights between the U.S. and Europe via Iceland will need to seek alternatives after October 2025, as PLAY’s affordable transatlantic fares will no longer be available.