Iceland’s PLAY Nixes 5 Summer Routes Including Washington Dulles & Shortens Service On 3

Iceland-based low-cost carrier PLAY
has scheduled its latest changes to services across its network, which includes cuts on transatlantic and Europe-bound routes, such as the end of its flights to Washington Dulles International Airport (IAD).

Axing two transatlantic routes

As flagged by AeroRoutes, PLAY will cancel seasonal service resumptions from Keflavik International Airport (KEF) to two North American destinations: John C. Munro Hamilton International Airport (YHM) and Washington-Dulles
; both are seasonal connections.

Other axed flights are from KEF to Gothenburg Landvetter Airport (GOT), Palma de Mallorca Airport (PMI), and Stockholm Arlanda Airport (ARN). Services to Athens Eleftherios Venizelos Airport (ATH), Düsseldorf Airport (DUS), and Hamburg Airport
(HAM) will have fewer weekly flights and/or operate for a shorter period of time during the upcoming International Air Transport Association ( IATA
) summer season.

As a result, its only remaining transatlantic flights during the summer season will be to Boston Logan International Airport
(BOS), Baltimore/Washington International Thurgood Marshall Airport (BWI), and New York Stewart International Airport
(SWF).

Strategy change

The cuts have undoubtedly been a part of its plans, as, on October 16, 2024, the Icelandic airline announced changes to its business model to reflect the reality of the market. As a result, it would focus on offering direct services from Iceland to Europe and significantly cut back its capacity on flights connecting passengers between Europe and North America.

“The point-to-point part of PLAY’s schedule, primarily flights between Iceland and Southern Europe, has been popular and profitable from the beginning. However, as previously reported, the airline’s yields on its hub-and-spoke part of the business across the Atlantic has been disappointing, particularly in 2024.”

PLAY reiterated that the North American market has experienced substantial changes, including a general increase in the supply of capacity that has negatively affected its financial performance. Thus, the carrier told in advance that by mid-2025, its network would shift from North America and North Europe to emphasize destinations in Southern Europe.

In addition, PLAY said that it would apply for an air operator’s certificate (AOC) in Malta, which would enable it to utilize its aircraft in other markets other than Iceland. At the time, it announced a wet lease partnership with US-based GlobalX Airlines, which would run between November 1 and March 15.

Flightradar24 data showed that out of the ten Airbus A320neo
(six) and A321neo
(four) aircraft, one A321neo, registered as TF-PLA, has been operating flights on behalf of GlobalX out of Miami International Airport
(MIA) and other Floridan airports.

“This process is expected to be completed by spring 2025. PLAY plans to move its first aircraft under the new Maltese AOC to Tenerife, from where it will be operated to Keflavík and Akureyri in Iceland and to other destinations.”

Worse than expected results

On October 24, PLAY announced its Q3 2024 results, detailing that they were worse than it had expected. Still, the airline ended the three-month period with earnings before interest and taxes (EBIT) of $9.6 million and net profit of $3.5 million, the latter being $1.2 million lower than in Q3 2023.

The airline reiterated that its declining unit revenues were driven by significant capacity growth to/from North America, with PLAY citing that from Keflavik, there were 15% more seats to North America and 7% additional seats on Transatlantic flights year-on-year (YoY).

Still, its cost per available seat kilometer (CASK) improved by $0.06, primarily driven by lower fuel prices. PLAY’s ex-fuel CASK was 4% YoY, according to the low-cost carrier’s Q3 results presentation.