Icelandair Completes Purchase of 49% of Former Rival PLAY’s Maltese Airline

October 20, 2026 — Icelandair has completed its purchase of a 49% stake in Fly Play Europe, the Maltese company set up by former rival PLAY before that airline collapsed. The deal gives Icelandair a foothold in a second European air operator’s certificate.

What happened

Icelandair announced on October 19 that all conditions had been met and the deal had closed. It bought the stake in Fly Play Europe Holdco from a fund representing PLAY’s former creditors, who keep the other 51%. AeroTime, citing AeroMorning, puts the price at about US$686,000.

The Malta air operator’s certificate itself stays with the subsidiary Fly Play Europe Limited, which answers to the regulator Transport Malta. Icelandair may eventually fly some routes under the Maltese certificate instead of its Icelandic one. Icelandair says the deal will not have a material effect on its 2026 results. Options to raise its stake later and financing terms have not been disclosed (TBA).

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Before PLAY’s collapse, the Maltese company leased at least four Airbus A320-family aircraft with crews to SkyUp Malta. As one AeroTime analysis put it, “The main prize is actually a license.”

What it means for non-revs

• No immediate change. Icelandair has not said which flights, if any, will move to the Maltese certificate or when.
• Watch the fine print later. If Icelandair does put flying on the Maltese operation, check how staff and interline travel rules apply to those flights before you plan. Those details are TBA.
• For Icelandair employees: a second certificate gives the airline more flexibility over where and how it operates. Watch for updates from the company and your union.

Sources

• AeroTime — Icelandair takes 49% of former rival PLAY’s Maltese business
• FlightGlobal — Icelandair Group completes acquisition of Play Europe stake