The rise and fall of Play, Iceland’s red-liveried low-cost carrier

In the summer of 2019, two former executives of the recently defunct Wow Air, Arnar Már Magnússon and Sveinn Ingi Steinþórsson, publicly announced plans for a new Icelandic airline. Their early project, initially called WAB air, an acronym for “We Are Back”, was conceived as a revival of low-cost international travel to and from Iceland. The company’s financing largely originated abroad, with a major stake held by an Irish investment fund linked to the Ryanair family.

Rebranded as Play later that year, the airline set up headquarters in Reykjavík and outlined a plan to serve both European and U.S. destinations from its hub at Keflavík International Airport. The first phase targeted six European cities: Copenhagen, London, Paris, Berlin, Alicante, and Tenerife. As Play moved toward launch, it assembled a fleet from the Airbus A320neo family, with aircraft seats configured to carry nearly 200 passengers each. The airline’s operational ambitions soon expanded to include four North American cities as well.

A new chapter in Icelandic aviation

Play’s public presence began to grow in 2021 with the announcement of its air operator’s certificate registration and the arrival of its first aircraft. Its maiden voyage took place on 24 June 2021, inaugurating service between Keflavík and London Stansted Airport. That same day, Play launched an initial public offering (IPO) on Iceland’s Nasdaq First North market. The IPO was heavily oversubscribed, reflecting optimism about the airline’s prospects among investors.

Growth continued over the next several years. Play secured permits for routes to the United States and launched transatlantic flights to Baltimore and Boston in 2022. The following year, it added a Canadian destination at Hamilton in Ontario. The network eventually reached into northern Africa and western Asia, with Marrakesh in Morocco and Antalya in Turkey joining the list of destinations. At its peak, Play operated a modern fleet of A320neo and A321neo aircraft, expanding its network across four continents.

Turbulence and closure

While Play grew steadily, it faced significant turbulence beneath the surface. Early wage agreements drew criticism for being below Icelandic minimum standards, and unstable financial results increasingly challenged the company’s sustainability. Strategic changes followed, including a plan to shift part of its operations to Malta via a new subsidiary, Play Europe, and a transition toward wet leasing some aircraft while reducing direct routes, especially to the United States.

Play’s story ended abruptly in September 2025 when the airline announced it would cease operations immediately due to prolonged financial difficulties. Approximately 400 employees lost their jobs as the company declared bankruptcy. The announcement instructed passengers to seek out rescue fares on other airlines, a conclusion reminiscent of the sudden exits that have sometimes defined the aviation industry in Iceland.

TopicsA320neoIcelandic AirlinesKeflavík AirportPlayWow Air