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PLAY Airlines ends all North American flights amid financial challenges

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PLAY Airlines ends all North American flights amid financial challenges
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PLAY Airlines | Official Website

The Icelandic airline PLAY has announced its decision to terminate its remaining North American routes, effectively withdrawing from the continent. This move follows the cessation of flights between Keflavik and Washington Dulles in December 2024 and Hamilton, serving Greater Toronto, in April 2025. The carrier has also decreased flight frequencies and transitioned to using Airbus A320neo aircraft after retiring its A321neos.

PLAY's operations in North America have been costly and unprofitable. The airline previously noted that the market is highly seasonal, with an oversupply of capacity and increasing competition leading to lower yields. As a result, PLAY plans to focus on leasing opportunities and Southern European leisure markets, which it says are more successful due to low-frequency point-to-point operations. The airline's Maltese air operator's certificate will facilitate expansion into other regions, with Pristina, Kosovo mentioned as a potential destination.

The last US route operated by PLAY will be from Keflavik to Baltimore on October 24. This route was the airline's inaugural North American service in April 2022. "I have fond memories of being on the first flight," a spokesperson recalled.

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With PLAY's exit from Stewart Airport, it will no longer have international services while two other US airports have recently gained them. PLAY began flights to this New York airport in June 2022 and maintained year-round operations until now.

In terms of performance over the past year up to February 2025, PLAY transported 265,600 round-trip passengers across its three remaining US routes. These accounted for about 13% of all Iceland-US-Iceland traffic but were relatively minor overall. Approximately eight out of ten passengers traveled only between Keflavik without connecting elsewhere.

Despite achieving an average seat load factor of 88%, four percentage points higher than the combined average for all operators, these routes were not financially viable for PLAY due to insufficiently low costs or high yields.

According to data from the US Department of Transportation (DOT), during this period Delta Air Lines, Icelandair, PLAY, and United Airlines collectively carried around 2.1 million passengers between Keflavik and various US destinations.

Boston emerged as the busiest route at an airport level with approximately 351,000 passengers traveling there; however it had only an 81% load factor indicating excess capacity unless offset by high yields.

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