Icelandic Airline Considers Leaving Iceland

Einar Örn Ólafsson, CEO of Play, does not rule out the airline delisting from the stock exchange and ceasing operations in Iceland altogether should market conditions become too difficult, reports RÚV.

Last week, Play issued a profit warning. The company is expected to have recorded greater losses in the second quarter of this year compared to the same period in 2023. While last year’s Q2 loss amounted to 10 million USD, this year’s loss is projected to be around 16 million USD.

Einar Örn leads a group of investors who announced in early June that the two largest shareholders of Play intended to submit a takeover bid for all shares in the company and delist it from the stock exchange.

Earlier this month, the proposed takeover bid was withdrawn, and Play now plans to remain listed. The company also intends to switch to an Air Operator Certificate (AOC) from Malta, returning its Icelandic AOC.

Einar Örn said that the company plans to grow gradually, both in Malta and Iceland, with a simplified route network. He noted that no further financing is needed, as the company has secured 20 million USD (approximately 2.4 billion ISK) through a bond issuance. This is pending shareholder approval at a meeting scheduled for mid-August.

From October, Play intends to stop flying to North America and reduce its number of destinations in Northern Europe. Four of the airline’s aircraft will continue operating to and from Iceland, focusing primarily on holiday destinations.

However, if competition in the domestic market becomes unbearable, Einar Örn says a complete withdrawal from Iceland cannot be ruled out.