PLAY Airlines to Cease All U.S. Flights by October 2025: What Travelers Need to Know

Icelandic low-cost carrier PLAY Airlines has announced a significant shift in its operations, confirming that it will cease all flights to the United States by October 2025. This decision marks the end of the airline’s North American venture, which began in 2021 with budget-friendly transatlantic flights connecting the U.S. to Europe via its hub in Reykjavík, Iceland. Here’s a breakdown of what’s happening, why, and what it means for travelers.

Background on Play Airlines

Founded in 2019, Play Airlines began operations in June 2021 and quickly gained attention for its budget-friendly fares and routes connecting Europe to North America, primarily through its hub in Reykjavik, Iceland. The airline has been popular among travelers seeking affordable options to destinations like New York, Boston, and Washington D.C.

Why PLAY Airlines Is Exiting the U.S. Market

PLAY Airlines’ decision to halt U.S. flights is part of a broader strategic pivot aimed at improving profitability. The airline, which launched as a successor to the defunct WOW Air, has struggled to make its transatlantic routes financially sustainable. Despite offering fares as low as $150 one-way, the North American market proved challenging due to:

• Seasonal Demand and Overcapacity: PLAY’s U.S. routes were profitable only during the second and third quarters of 2023, with losses reported in other periods due to seasonal demand fluctuations and an oversaturated transatlantic market.
• High Operational Costs: Rising fuel costs and competitive pressures from larger carriers like Icelandair, Delta, and United made it difficult for PLAY to maintain low-cost operations.
• Shift to Leisure Markets: The airline is refocusing on point-to-point leisure routes, particularly to sunny destinations in Southern Europe, such as Spain, Portugal, Morocco, Croatia, and Turkey, which have shown stronger demand and profitability.

Additionally, PLAY is undergoing a shareholder-led takeover by CEO Einar Örn Ólafsson and Vice Chairman Elías Skúli Skúlason, which includes delisting the airline from the Nasdaq Iceland exchange and transitioning to a Maltese Air Operator Certificate (AOC). This restructuring will see six of its ten Airbus A320neo aircraft leased to other carriers, with the remaining four focusing on leisure routes from Iceland.

Timeline of U.S. Route Terminations

PLAY Airlines currently operates flights from Keflavík International Airport (KEF) to three U.S. destinations: New York Stewart International Airport (SWF), Boston Logan International Airport (BOS), and Baltimore/Washington International Thurgood Marshall Airport (BWI). The phase-out schedule is as follows:

• New York Stewart (SWF): Service ends after September 1, 2025.
• Boston (BOS): Service ends after September 15, 2025.
• Baltimore (BWI): Service ends after October 24, 2025, symbolically marking the end of PLAY’s U.S. operations, as BWI was its first North American route in April 2022.

This follows earlier cuts, including the termination of flights to Washington Dulles (IAD) in December 2024 and John C. Munro Hamilton International Airport (YHM) in Canada in April 2025.

Impact on Travelers and Airports

For budget-conscious travelers, PLAY’s exit is a significant loss. The airline offered some of the most affordable transatlantic fares, often under $200, making it a popular choice for students, families, and adventure seekers. Its hub-and-spoke model allowed passengers to connect to European destinations like Berlin, Copenhagen, Dublin, and London via Reykjavík, with a unique stopover program that encouraged up to 10-day layovers in Iceland at no extra cost.

• New York Stewart International Airport (SWF): Located 77 miles north of New York City, SWF will lose its only international and European service, a blow to its efforts to establish itself as a viable alternative to major hubs like JFK and Newark. The airport has faced similar setbacks, with Norwegian Air exiting in 2019.
• Baltimore (BWI): PLAY’s departure marks the seventh airline to exit BWI in recent years, highlighting the competitive pressures in the U.S. Northeast corridor. However, Icelandair continues to serve BWI with daily flights to KEF.
• Boston (BOS): Boston remains a key market, with Icelandair offering up to 20 weekly flights in summer and 10 in winter, mitigating some of the impact of PLAY’s exit.

PLAY has assured affected passengers that they will be contacted for rebooking options or refunds. Travelers with bookings after September 1, 2025, are advised to proactively rebook with other carriers, such as Icelandair, to avoid disruptions, especially given the risk of operational hiccups in the final weeks of service.

What’s Next for PLAY Airlines?

PLAY’s new strategy focuses on profitability through:

• Leisure Destinations: The airline will operate 16 leisure routes from Iceland, including eight in Spain, four in Portugal, two in Morocco, one in Croatia, and one in Turkey.
• Aircraft Leasing: Six Airbus A320neo aircraft will be leased to other operators, such as SkyUp Malta Airlines, reducing PLAY’s operational costs.
• Maltese AOC: By shifting to a Maltese AOC, PLAY aims to benefit from favorable regulations and tax structures while maintaining its Icelandic identity with red-liveried aircraft and Icelandic crews.

This pivot mirrors a broader trend among low-cost carriers, with airlines like Norwegian and Norse Atlantic also scaling back long-haul operations in favor of shorter, more profitable routes. However, PLAY’s shift raises questions about its long-term viability, especially as it operates with just four aircraft and competes in a crowded European leisure market.

Lessons from the Past

PLAY’s trajectory echoes that of WOW Air, which collapsed in 2019 under a similar low-cost, long-haul model. Many of PLAY’s executives, including CEO Ólafsson, were former WOW Air leaders, yet the airline repeated many of the same challenges, such as overcapacity and high operational costs. The failure of PLAY’s transatlantic experiment underscores the difficulty of sustaining low-cost, long-haul operations, a lesson also learned by Norwegian and Norse Atlantic.

Advice for Travelers

If you’re booked with PLAY for travel after September 1, 2025, consider the following:

• Check Your Booking: Monitor your email for notifications from PLAY regarding rebooking or refunds.
• Explore Alternatives: Icelandair offers robust service from BWI, BOS, and major New York airports (JFK and EWR) to KEF, often with competitive fares and free stopover options.
• Act Quickly: As PLAY’s exit reduces capacity, other airlines may raise fares due to increased demand. Early rebooking can secure better rates.

For those planning future trips to Iceland or Europe, Icelandair remains the dominant carrier from Keflavík, with a more established network and a proven track record. Budget travelers may need to rely on legacy carriers or emerging low-cost options, though PLAY’s exit narrows these choices.

Final Thoughts

PLAY Airlines’ decision to cease U.S. flights by October 2025 reflects the harsh realities of the low-cost, long-haul model. While its affordable fares and vibrant red aircraft brought a fresh option to transatlantic travel, the airline’s pivot to leisure markets and aircraft leasing is a pragmatic move to stabilize its finances. For U.S. travelers, this marks the end of a budget-friendly era, but Icelandair and others are ready to fill the gap. As PLAY refocuses on sunny European destinations, only time will tell if this new strategy will lead to sustainable success or if it will face the same challenges that grounded its predecessor, WOW Air.

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