Icelandair acquires 49% stake in former rival PLAY’s Maltese business

Icelandair Group has finalized the acquisition of a 49% stake in Fly Play Europe Holdco for $686,000. The transaction, which closed on October 19, 2026, follows a purchase agreement signed in August 2026. The stake was acquired from a fund representing the former creditors of PLAY Airlines.

The primary strategic value of the acquisition lies in the subsidiary, Fly Play Europe Ltd., which holds an air operator certificate (AOC) in Malta. This certificate allows for commercial flight operations under Maltese regulatory oversight. Icelandair may eventually utilize this Maltese AOC to facilitate European operations, though any deployment of aircraft or new flight routes remains subject to regulatory requirements and future commercial decisions.

Existing investors and creditors will retain the remaining 51% of the holding company. While specific financing arrangements and options for Icelandair to increase its stake remain undisclosed, the airline stated that the acquisition is not expected to have a material impact on its 2026 financial results.