Discount carrier Play Airlines to end all US flights by October
Icelandic discounter Play Airlines will end all flights to the U.S. in October, exiting the market 3 1/2 years after betting that transatlantic flyers would flock to its low fares.
Play will end flights from Keflavik International Airport (KEF) to New York Stewart International Airport (SWF) on Sept. 1, to Boston Logan International Airport (BOS) on Sept. 15 and to Baltimore/Washington International Thurgood Marshall Airport (BWI) on Oct. 24, according to the airline's website.
The airline will, instead, focus on flying leisure travelers between Iceland and Europe, and it will essentially try downsizing by leasing six of its 10 Airbus A320neo family planes to other airlines, an investor presentation on Tuesday showed.
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Travelers still have options between Iceland and Play's former U.S. destinations. Icelandair flies from KEF to BWI and BOS, schedule data from aviation analytics firm Cirium shows. And, while it does not fly to SWF (on the northern fringes of the New York City metro area), it does connect KEF to two of New York City's primary airports: Newark Liberty International Airport (EWR) and New York John F. Kennedy International Airport (JFK).
Play's exit from the U.S. market is part of a strategic pivot to boost profitability. The carrier told investors Tuesday that the North American market had "changed significantly" since it began flights in April 2022. The changes include additional transatlantic capacity from legacy carriers, new nonstops on longer-range narrow-body planes like the Airbus A321XLR, and a general shift in travelers' desire for more premium offerings.
Play follows the typical budget airline business model with bargain base fares and fees for all other amenities, from assigned seats to checked bags. Its most premium onboard offering is a limited number of extra-legroom seats.
The airline took off in 2021 as something of a reboot of the failed Icelandic discounter Wow Air. Then-CEO Birgir Jonsson embraced the comparisons, touting Iceland's strong tourism market and the need for a budget alternative to Icelandair. Play would not repeat the mistakes of Wow, he said, by moderating growth.
When Play landed in Baltimore in April 2022, Jonsson said demand for its first U.S. route was coming in as planned, with most travelers booking connecting itineraries to Europe.
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The investor presentation paints a different picture. Play's North American flights only turned a profit in the second and third quarters of 2023, and they lost money throughout the rest of their existence, according to the airline.
Einar Orn Olafsson, who replaced Jonsson as Play's CEO in March 2024, told TPG in May that he was focused on getting the airline onto solid financial footing. North American growth would slow as European flights were more profitable, but the carrier still saw opportunities in the U.S. and Canada.
By the end of 2024, Play's pivot away from the U.S. and to Europe became evident. The airline ended flights to Dulles International Airport (IAD) in December and then to John C. Munro Hamilton International Airport (YHM) near Toronto in April 2025.
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