Iceland’s Play Airlines halts all flights after four years amid financial losses

Reflecting on comparisons between the two airlines in a 2021 interview with Skift, then-CEO Birgir Jonsson said, "Everyone has learned a lot. What happened at Wow Air [is] they simply grew too fast," promising that Play would avoid similar mistakes. Under Jonsson’s leadership until 2024, Play expanded cautiously, growing its fleet to a maximum of ten Airbus A320neo-family aircraft.

However, market conditions changed following the COVID-19 pandemic. Larger airlines introduced basic economy fares with more amenities than those offered by discounters like Play, appealing to price-sensitive travelers who might otherwise have chosen low-cost carriers. This shift has also affected other budget airlines such as Spirit Airlines, which is currently undergoing bankruptcy restructuring.

Additionally, new aircraft models like the A321XLR enabled direct flights between smaller cities across the Atlantic, reducing demand for connecting itineraries through Iceland. Travelers have also shown increased interest in premium offerings since the pandemic—a segment that Play did not target.

In response to these challenges, Play adjusted its business strategy in 2024 to focus more on leisure routes within Europe and less on transatlantic connections. In June 2025, the airline announced plans to discontinue all U.S. routes—including Baltimore/Washington International Thurgood Marshall Airport (BWI), Boston Logan International Airport (BOS), and New York Stewart International Airport (SWF)—by October. The last scheduled U.S. flight was set for October 24 from BWI but will now not take place due to the immediate halt of all operations.

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